There is undoubtedly a worldwide transition towards renewable energy underway, with global additions of renewable power capacity expected to jump by a third this year.
Despite this, it is now widely believed that there is only a slight chance that global warming won’t break the 1.5°C threshold and, as a result, we need urgency in driving increasingly ambitious decarbonisation efforts year-on-year.
This is particularly true in the UK. We have seen Prime Minister Rishi Sunak’s watering down of net zero policies, while still claiming to support the legally binding 2050 target, which appears more ambitious than ever. The UK’s renewables industry must take the opportunity to harness its ambition to build and operate the clean energy projects needed for the UK’s energy transition. This calls for a huge pool of qualified and experienced talent.
The question for the industry is: How do we install, operate and service the clean energy projects needed for the UK’s energy transition?
No workforce, no energy transition
The increasing ambitions of installation targets worldwide mean that demand for workers is rising faster in the renewable sector than in other industries. This gives the renewable energy industry an incredible opportunity.
Worldwide employment in the sector reached 13.7 million in 2022 – an increase of one million since 2021. By training and developing a new workforce to contribute to our planet’s future, we have the chance to not only attract even more skilled workers to meet vital climate targets, but to also become an inspiration for other industries, showing them how upskilling and learning and development can be done.
In the UK alone, there is a current gap of around 200,000 workers challenging its ability to meet net zero targets. As well as competing with each other for talent, the renewables industry is competing with other sectors for the same highly sought-after skills that are needed. It is incumbent on the sector to work together as a whole to be the best employers we can be if we are to be successful.
However, it takes time to train people for these roles. The wider the gap becomes, the more time we will need to fill it. At the moment just one in eight British workers has skills such as climate action planning and sustainable design (less than both Germany and France, and below the EU average). This represents a huge opportunity for renewables businesses to demonstrate their offering – and how great a place it is to build a career and develop skills. We must do all of this and more to attract talent and get the UK’s green energy transition back on track.
Attract talent through purpose and diversity
So, how can renewable businesses start to attract talent? BayWa r.e. believes the answer is in our ability to provide people with purposeful careers that have a real impact, challenge the status quo and are socially responsible.
Today, 70% of employees say that their sense of purpose is defined by their roles, yet only 23% of employees globally feel engaged at work. The renewables industry with its clear purpose has a huge advantage in attracting skilled workers – one it shouldn’t neglect to communicate at every opportunity. This is especially true when it comes to reaching younger generations entering employment, with Deloitte reporting that climate change remains a top three concern for both Gen Z and Millennials.
It also applies to reaching those working in carbon-intensive industries. As we move away from dependence on fossil fuels, and these businesses scale down, there are opportunities for these workers to make the move over to renewables, grow professionally and put their knowledge to good use.
But it’s not only those coming from more digital or technical energy backgrounds that can make a difference in the renewables industry. There are current skills shortages across a range of disciplines, from electrical and mechanical engineering to project and business development. To change this, businesses can do more to help prospective candidates understand how many different roles the renewables industry has to offer and how their unique skill set can make an impactful contribution.
Diversity and Inclusion should be a priority for all companies. When it comes to the growing renewables business, the green skills shortage offers a unique opportunity to build a more diverse workforce. There are benefits for recruitment to close the gap, and for social responsibility, bringing together different backgrounds, perspectives and ideas that can significantly contribute to innovation.
An inclusive workforce can cut straight through stereotypes. It can encourage specialised skills, expertise and creativity of staff, and create an environment that is more attractive to work in. It can help a business and its team realise their potential internally, as well as bring benefits to society and the economy as a whole. Put simply, it’s the right thing to do.
Upskill and reward talent
By providing career and personal development opportunities that include mentoring, tools and training, renewable businesses can go one step further in attracting talent. Through a holistic learning and development focus, companies can successfully create a skills pipeline for specialist, project and management positions to ensure they have a healthy intake of talent. For example, BayWa r.e. launched its Engineering Academy – an initiative to develop and support engineers to become senior experts in the field.
Attracting new talent is key, as is retaining our existing team members at every other stage of their careers. Businesses already have a great asset in their existing employees, and to meet long-term needs they must invest in coaching, training and upskilling – something only 26% of UK green organisations are currently doing. Wider industry experience can also be highly beneficial to the sector and with robust enough onboarding, businesses can open themselves up to recruiting individuals with no prior experience in the renewables sector.
In 2021, BayWa r.e. implemented a framework to give employees regular opportunities to discuss and focus on personal and professional development. By investing in developing their people’s capabilities, businesses not only stand to benefit from skills gains but retain a competitive edge as top employers, whilst avoiding high employee turnover which can be especially costly in this sector.
Political action is needed
The reality is that while businesses can take more individual responsibility when it comes to attracting the brightest and best green talent, not everything is in their hands. Brexit, for instance, is one factor complicating recruitment within the UK labour force.
As the country settles into its new relationship with the continent on its doorstep, it is reported that the UK is facing an estimated shortfall of 330,000 workers.
Change is needed on a wider, political scale. In the UK cross-border hiring remains ineffective. With high barriers to entry, foreign interest in the country’s renewable energy jobs will always be limited. To change this, clear regulations and frameworks are needed for factors such as individual and corporate taxes, social security, employment law and insurance. This is an opportunity for policymakers and businesses to collaborate on identifying efficiencies for bringing skilled talent into not just the UK’s renewable sector, but also to facilitate the freer movement of talent around Europe.
Greater harmonisation also includes setting industry-wide standards, implementing the cross-border acceptance of certificates and increasing the number of professionals in public administrative bodies to help expedite the granting of work permits.
Further, more cross-border initiatives are required, especially when it comes to training and upskilling. These, as well as engineering degrees that traverse countries, can create an environment where skilled individuals are not consistently running into barriers, as well as borders.
No time to waste
Global warming is set to break the 1.5°C mark. The UK’s businesses and politicians need to act now to address green skills shortages so that they have a hope of delaying some of the most catastrophic effects of climate change before it is too late and the environmental toll caused is irreversible.
Working together as an industry, we must be proactive in building the green talent pool to maintain our chances of achieving net zero. As we continue through this decade that matters, with serious investment and commitment, we can create genuine and lasting change.