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The UK financial services sector faces an emerging green skills gap and is not moving fast enough to close it, which stands to jeopardise net zero goals, according to PwC’s latest Green Jobs Barometer report.
The report, which is in collaboration with the Financial Services Skills Commission (FSSC) and the Aldersgate Group, explored the role of the financial services sector in achieving a net zero future and how it’s fuelling a rising demand for green jobs in the industry.
The report found that the proportion of green job vacancies in the sector increased from 0.26% in the 2019/2020 timeframe to 2.2% in 2022/2023, growing from a total of 4,900 jobs to 16,700.
Given the scale of the green investment needed to meet net zero goals in the UK and globally, PwC expects this growth to accelerate.
According to the firm, the growth in green job openings has been driven in part by the need for sustainable investment analysts, climate strategists and ESG analysts, as well as “the greening” of existing jobs.
While the demand for green finance jobs is on the rise, significant regional disparities exist in the prevalence of these roles across the UK. London and Edinburgh have emerged as global leaders in green and sustainable finance, attracting talent and investment that has fueled substantial growth in their green economies.
However, as the demand for green talent and skills continues to grow, the supply of green talent both from new entrants and the existing workforce is failing to rise with it and a green skills gap is emerging.
The total number of green job vacancies stood at nearly 17,000 in 2023 and it’s estimated that graduates with sustainability skills would only be able to fill 900 of these vacancies. The rest of vacancies will need to be filled by retraining the current workforce.
Carl Sizer, head of regions at PwC UK, said: “As green and nature finance continues to grow, the pressing green skills gap needs to be addressed. Collaboration between government, educational institutions and the financial sector is essential to meet Net-Zero objectives and promote sustainability in finance.
“For graduates and students green skills are no longer a niche specialisation, but core to jobs in financial services, not something traditionally associated with sustainability. And for the existing workforce – effective and comprehensive green reskilling and upskilling takes time, so investment in resources and training should commence straight away.”
