Preparing for Tomorrow: Insights from the Future of Jobs Report 2025
In this interview, Jaime Amoedo, Executive Director and Co-founder of The ESG Institute, discusses the findings of the World Economic Forum’s Future of Jobs Report 2025, published early this week. He highlights the transformative impact of the green transition on the global labor market, the growing demand for green skills, and how businesses and professionals can navigate the opportunities and challenges of workforce transformation in a rapidly evolving economy.
The ESG Institute is committed to advancing sustainable practices and recognizing the transformative impact of ESG principles on the global workforce and economy. Through expert-led conversations, we empower businesses and individuals with insights and tools to thrive in the green economy.
In this installment, we spoke with Jaime Amoedo, Executive Director of The ESG Institute, to delve into the implications of the Future of Jobs Report 2025. With his deep expertise and unwavering commitment to sustainability, Jaime shares his perspective on how businesses can adapt to the demands of the green economy, the urgency of addressing the green skills gap, and the pivotal role of policy and innovation in creating a sustainable and inclusive global workforce.
Jaime, thank you for joining us today. The Future of Jobs Report 2025 highlights that green skills have entered the list of the top 10 fastest-growing skills globally. With demand outpacing supply, how can businesses and governments accelerate the development of these skills to close the gap?
Closing the green skills gap requires an urgent collaboration between businesses and governments to scale training initiatives and align them with industry needs. Governments can play a pivotal role by introducing policy incentives and funding for green skills education. For example, the European Union’s Green Deal has allocated billions to train workers in areas like renewable energy and sustainable construction, setting a model for other regions.
Businesses, on the other hand, need to embed skill development into their core strategies. Partnerships with educational institutions can create tailored programs that prepare workers for specific roles, such as wind turbine technicians or environmental data analysts. Apprenticeships and hands-on training further ensure practical application.
By combining policy-driven incentives with industry-led initiatives, the supply of green skills can be accelerated, enabling the workforce to meet the demands of the green economy while driving economic growth and sustainability.
Renewable energy engineers, environmental specialists, and electric vehicle experts are among the fastest-growing roles. What can industries do to attract and retain talent for these critical positions?
Attracting and retaining talent for these roles starts with competitive compensation and benefits. LinkedIn data reveals that hiring rates for green-skilled professionals are 54.6% higher than average, with even higher premiums in markets like the United States and Ireland. Businesses offering attractive pay packages and additional incentives can secure top talent in a competitive landscape.
Career development opportunities are also crucial. Organizations that provide cutting-edge training, mentorship, and clear pathways for advancement stand out to professionals in the green economy. For example, companies in the renewable energy sector have partnered with universities to create tailored degree programs, ensuring a steady pipeline of skilled talent. By committing to the growth of their workforce, businesses can cultivate loyalty and attract mission-driven individuals.
The role of a purpose-driven employer brand cannot be overstated. A 2022 Deloitte survey found that 49% of Gen Z respondents prefer working for companies aligned with their personal values, including sustainability. Businesses that demonstrate tangible contributions to global climate goals and emphasize their environmental impact resonate strongly with today’s workforce. This alignment not only attracts talent but fosters deeper engagement among employees.
Finally, closing the green skills gap requires reskilling and upskilling initiatives. The report highlights that 85% of employers plan to prioritize upskilling by 2030, yet significant gaps remain. Internal training programs, collaborations with educational platforms, and inclusive hiring practices can help bridge these divides. Diversifying the workforce is equally critical, as only 26% of green jobs are currently held by women. Expanding access for underrepresented groups not only addresses equity but ensures a broader talent pool to meet the demands of the green transition.
“Sustainability is both a challenge and an opportunity for global workforces”
The report predicts that two-fifths of workers’ skills will become outdated by 2030. How should businesses structure reskilling and upskilling programs to ensure their workforce remains competitive, particularly in green sectors?
With two-fifths of workers' skills set to become outdated by 2030, reskilling and upskilling programs must be dynamic, targeted, and future-oriented. The report emphasizes that green sectors, in particular, require specialized training due to the rapid growth of roles like renewable energy engineers and environmental specialists. Businesses should begin by identifying the specific skills needed to support their sustainability goals, focusing on both technical expertise, such as renewable energy technologies, and soft skills like resilience and adaptability, which are increasingly critical.
Partnerships with educational institutions and online learning platforms can significantly enhance these efforts. For example, platforms like Coursera, LinkedIn Learning and The ESG Institute have seen substantial growth in green skills training, with courses on renewable energy systems and sustainable development among the most popular. Tailored collaborations allow businesses to offer employees training programs that align with industry demands, ensuring relevancy and impact. These partnerships also help in creating accessible, scalable solutions for companies of all sizes.
Another key factor is integrating learning into the workplace. Research from the World Economic Forum suggests that on-the-job training is one of the most effective ways to upskill employees while minimizing disruption to productivity. Programs like mentorships, rotational assignments, and apprenticeships provide employees with practical, hands-on experience while fostering innovation. This approach is particularly effective in green sectors, where rapidly evolving technologies demand a constant feedback loop between training and application.
Inclusion must also be a core consideration. Currently, underrepresented groups such as women and young professionals often face barriers to entering or advancing in green roles. Businesses should ensure their training programs are accessible to diverse populations, offering scholarships, flexible schedules, and mentorship opportunities to expand participation. This not only broadens the talent pool but also helps create a more equitable transition to a sustainable economy. By aligning reskilling strategies with these principles, businesses can prepare their workforce to thrive in the green sectors of tomorrow.
The green transition is expected to disproportionately impact industries like automotive, aerospace, and manufacturing. How can these sectors manage the dual challenge of decarbonization and workforce transformation?
Industries like automotive, aerospace, and manufacturing face immense pressure to decarbonize while simultaneously transforming their workforces to meet the demands of the green economy. This dual challenge requires an integrated approach, starting with investment in cleaner technologies. For instance, the automotive sector is shifting toward electric vehicles (EVs), with global EV sales expected to reach 14 million in 2025, a 35% increase from 2023, according to the International Energy Agency (IEA). Such transitions necessitate retraining workers in areas like EV assembly, battery technologies, and sustainable supply chain management.
Collaborations between businesses, governments, and educational institutions are also essential. Germany, for example, has introduced programs combining subsidies for green technologies with workforce training initiatives in hydrogen fuel cells and sustainable materials. These efforts have helped reduce emissions while safeguarding jobs.
Moreover, these sectors must embed reskilling into their decarbonization strategies. Offering employees tailored upskilling programs in emerging technologies ensures that workforce transformation complements sustainability goals. Simultaneously, fostering a culture of innovation and inclusivity attracts diverse talent pools, strengthening organizational resilience.
The report highlights a global 12% increase in workers acquiring green skills between 2022 and 2023. However, job postings requiring at least one green skill rose by nearly 22%. How can businesses bridge this growing demand-supply gap effectively?
The disparity underscores the urgency for businesses to address the growing demand-supply gap. A critical first step is to integrate green skill development into broader workforce strategies. Companies can identify emerging skill needs specific to their sectors, such as renewable energy expertise, sustainable procurement, or circular economy practices, and design training programs accordingly.
Collaborations with educational institutions and online platforms are vital. Programs like those offered by edX or The ESG Institute, which specialize in sustainability, provide scalable solutions for upskilling large segments of the workforce. Partnerships with universities, such as those seen in the automotive and energy sectors, have already proven effective in creating talent pipelines for green roles.
Additionally, businesses must focus on reskilling existing employees. By equipping current workers with green skills, companies can accelerate the transition without waiting for external labor markets to catch up. This approach is supported by findings from the report, which reveals that 85% of employers plan to prioritize upskilling by 2030. These initiatives, coupled with strategic investments in learning infrastructure, can close the gap and future-proof businesses for the green economy.
Certain regions, like South-Eastern Asia, have 72% of employers expecting climate mitigation efforts to transform their business, while others, like Central Asia, see much lower relevance. What lessons can global leaders draw from high-performing regions?
High-performing regions like South-Eastern Asia demonstrate the power of aligning policy, investment, and workforce development to address climate challenges. The region's strong focus on renewable energy projects, supported by significant foreign direct investment and government incentives, has created an environment where businesses see climate mitigation as an opportunity rather than a burden. This alignment fosters innovation, accelerates green job creation, and ensures a steady supply of skilled talent.
In contrast, regions with lower perceived relevance of climate mitigation often lack coordinated frameworks to drive the green transition. Global leaders can learn from high-performing regions by prioritizing policy coherence, such as integrating climate targets into economic strategies, and ensuring access to funding for sustainable projects. Strengthening regional collaboration to share best practices and providing targeted support for industries in lagging areas can also bridge gaps and ensure a more equitable global response to climate challenges.
The report mentions that 85% of employers plan to upskill their workforce, while 40% expect to reduce staff with outdated skills. How can businesses balance these strategies while ensuring a just transition?
Balancing upskilling initiatives with workforce reductions requires a strategy rooted in fairness and forward-thinking. Employers must prioritize reskilling programs to give workers with outdated skills a pathway to transition into emerging roles. For example, Siemens has successfully retrained traditional manufacturing employees for positions in renewable energy and automation, demonstrating that retaining talent through targeted training benefits both workers and businesses.
Transparent communication is key. Companies should involve employees in shaping reskilling initiatives, ensuring they understand the rationale and opportunities behind the transition. Financial support, such as subsidies for training or temporary income supplements, can ease the transition for workers while they adapt to new skill demands.
Collaboration with unions, governments, and educational institutions can further ensure that no worker is left behind. By focusing on inclusion and equitable access to training, businesses can lead a transition that is both economically viable and socially responsible, reinforcing trust and long-term workforce stability.
With automation and AI displacing 9 million jobs globally, the report identifies green skills as critical for many new roles. How can sustainability professionals leverage technology to enhance, rather than replace, human work in their fields?
Sustainability professionals can harness the potential of automation and AI by integrating these technologies into environmental initiatives to amplify human effort rather than substitute it. For instance, AI-driven tools are transforming energy management by optimizing renewable energy grids, analyzing weather patterns, and improving efficiency. Professionals skilled in green technologies can use such tools to drive innovation and operational excellence.
In agriculture, AI applications in precision farming allow experts to reduce waste, manage resources, and monitor environmental impact, creating opportunities for hybrid roles that blend technical knowledge with sustainability expertise. Similarly, automation in manufacturing, such as in the production of electric vehicles, reduces emissions and enhances supply chain transparency, with professionals guiding ethical and sustainable practices.
Rather than viewing technology as a threat, sustainability professionals can adopt it as a powerful ally, positioning themselves as leaders who bridge the gap between digital transformation and environmental stewardship.
What’s your advice to businesses and professionals aiming to succeed in the rapidly evolving green economy?
My advice is clear: embrace the green transition as both a responsibility and an opportunity. For businesses, this means embedding sustainability into every aspect of their operations—strategy, innovation, and workforce development. The Future of Jobs Report 2025 makes it evident that aligning with green principles isn’t just a regulatory necessity; it’s a pathway to resilience and long-term growth. Companies that invest in green skills and technologies now will be the ones leading their industries tomorrow.
For professionals, the message is equally urgent. Whether you’re just starting your career or looking to pivot, now is the time to upskill and align with the demands of the green economy. The opportunities are vast, from renewable energy and sustainable finance to roles in decarbonization and circular economy strategies.
At The ESG Institute, we’re committed to empowering individuals and organizations with the knowledge and tools needed to thrive. The green economy offers immense possibilities, but success requires bold action today.
Link to the Report: https://www.weforum.org/publications/the-future-of-jobs-report-2025/digest/
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