The urgent need for sustainability skills

Australia’s path towards a sustainable future is accelerating, and HR professionals must get on board, writes Kade Brown.

From major international agreements like the $19 billion solar power deal with Singapore to heightened regulatory scrutiny on corporate greenwashing, there’s no doubt that climate action has become a business priority. But while these developments signal exciting progress, they also bring an urgent question to the forefront: are our workforces ready to support this transition?

As HR professionals, the challenge is clear. Sustainability and climate-related skills are no longer a niche requirement – they are essential for every industry. Yet, in the face of economic pressures, many organisations are cutting back on learning and development (L&D), leaving critical skills gaps at a time when they can least afford them. The time to act is now, and HR teams must take the lead in shaping a future-ready workforce equipped to meet the demands of a rapidly evolving climate agenda.

Climate skills: a business imperative, not just a compliance need

The need for green skills is not just about meeting new regulations, though that is a significant driver. Recent changes like the International Financial Reporting Standards (IFRS) and the Australian Sustainability Reporting Standards (ASRS) now require large companies to integrate climate performance into their financial reports. Over time, these standards will extend to all businesses in Australia, making it clear that sustainability is no longer optional.

For HR leaders, this regulatory shift creates both a challenge and an opportunity. Organisations will need to upskill employees across various departments – not just within sustainability teams – to comply with these standards. Finance teams will need to understand how to account for environmental impacts, operations teams will need to implement decarbonisation strategies, and marketing teams will need to communicate sustainability efforts transparently.

The takeaway? Climate-related skills aren’t just for specialised roles. They’re becoming a core competency across all business functions, and HR professionals are key to driving this shift.

The growing gap between skills demand and L&D investment

Despite this growing need, many businesses are falling behind. Recent data reveals that one in eight Australian companies plans to cut their L&D budgets by 50 per cent this year. This amounts to a staggering $2 billion loss in skills investment across the Australian economy. This trend is particularly concerning in the context of green skills, where the workforce demand is expected to surge by an additional 60,000 jobs by 2024.

In this environment, HR professionals must act as strategic partners within their organisations, advocating for investment in critical skills despite tightening budgets. The challenge lies in demonstrating that sustainability and climate skills are not a “nice-to-have” but a “must-have” for future-proofing businesses.

Rethinking learning strategies for climate upskilling

To close the skills gap, HR teams need to take a fresh approach to learning and development, prioritising flexibility, accessibility, and relevance. With the rise of online learning platforms, upskilling employees has never been more accessible. Remote and hybrid working arrangements mean staff can engage in professional development from anywhere, integrating learning into their work schedules without disruption.

At RMIT Online, we’ve partnered with Deloitte to develop a short course on sustainability and climate-related financial reporting to help professionals navigate these emerging regulatory requirements. Organisations like ANZ and Transurban have already enrolled employees to ensure they remain ahead of the curve. This kind of agile, targeted learning is the key to keeping pace with rapidly changing skill requirements.

For HR professionals, this presents a clear path forward: embracing a culture of continuous learning. Whether it’s sustainability training, micro-credentials, or cross-functional development programs, HR teams have the tools to build a resilient and adaptable workforce.

HR’s role in building the workforce of the future

The shift towards a more climate-conscious workforce is happening whether businesses are prepared or not. HR leaders have a crucial role in guiding their organisations through this transition by ensuring that employees are not only compliant with new regulations but are also driving innovation and growth in a sustainable direction.

In a time of financial constraint, strategic HR leadership will be the key to success. While it may be tempting to cut back on L&D programs, the long-term risks of not upskilling employees in sustainability far outweigh the short-term savings. Those businesses that invest in green skills now will be the ones leading the way in a new, sustainable economy.

For HR professionals, the call to action is clear: prioritise climate-related skills development today and help your organisation thrive in the sustainable business landscape of tomorrow.

Kade Brown is a workforce development director at RMIT Online.