This report by the CIPD examines the transition to a net zero economy, which is set to become a defining trend of the coming three decades. The key theme running through this report is that it is people in a transforming labour market who are at the heart of the transition to net zero – and that means people professionals have to be too.
Organisational change, workforce planning and skills development are key to this transition. All three areas depend on people professionals, and they should lead the way. Their contribution will be crucial in achieving a just transition to net zero.
The transition to a net zero economy will become a defining trend of the coming three decades. The scale of the changes required – from global macroeconomic policy down to individual behaviours – is only just becoming clear. Governments and organisations across the world are slowly starting to take meaningful steps to reduce our dependence on fossil fuels, invest in new technology and support natural carbon sequestration.
The war in Ukraine has shone a light on issues like energy security, and energy price-driven inflation has led to a cost-of-living crisis that’s likely to last several years. This further accelerates the need for change – both for organisations and individuals. We all have a role to play in reducing energy demand, particularly reducing our reliance on fossil fuels. And we will need to change the way we travel – drive electric vehicles or, indeed, not drive at all.
But these transitions will also mean huge shifts in our economies and will require businesses to adapt rapidly. This does not just mean behaving in an environmentally sustainable way. It also means big changes in the kinds of employee skills that will be needed – from offshore wind turbines or air source heat pump installations, through retrofitting houses, to peatland restoration. Construction, manufacturing and energy sectors will need to adapt, while others – like oil and gas – will likely see job losses as well as brand new jobs as the industries slowly transition.
The challenges of these transitions are vast, but so are the opportunities. Scotland, and the north east of Scotland in particular, has an advantage in considerable natural resources, an existing oil and gas skills base to build on, high-quality universities (and research activity in them), a good vocational and work-based learning system, and buy-in from public, private and third sectors. But there are some key barriers that we need to overcome, not least competition from countries like Norway, which are also aiming to position themselves as global net zero leaders.
Organisational change, workforce planning and skills development are key to this transition. All three areas depend on people professionals, and they should lead the way. Their contribution will be crucial in achieving a just transition to net zero.