Green Jobs Barometer for the Channel Islands

In the UK as a whole, PwC estimates that an additional £40 billion a year in infrastructure investment will be needed over the next decade to deliver a net zero economy, doubling current levels.

As our Green Jobs Barometer highlights, the demand for new infrastructure could be a boon for construction companies in the Channel Islands. But to meet rising demand in a sector already suffering chronic skills shortages calls for a big step-up in investment in apprenticeships and skills development. It’s also going to require broader approaches to recruitment and retention. This could include attracting more women into construction and providing incentives to encourage skilled trades people to work longer before retirement.

The other big priority is the greening of construction itself. The sector is being reshaped by changes in building regulations and energy performance certificates. Developers also need to meet more exacting demands on sustainability from commercial tenants and real estate investors. The resulting priorities include making sure that the design and construction of buildings and infrastructure minimise the impact on the environment in areas such as the responsible sourcing of materials. It also means considering the lifecycle impact of the construction including factors such as energy efficiency and end-of-life reuse of materials.

An important step forward is the industry push for the application of building information management locally. The modelling makes it easier for architects and builders to assess and reduce the energy usage and waste from a building while it’s being designed.

It is essential that major construction and infrastructure projects in the Channel Islands are as green as possible.

The financial services sector is a major local employer in both Guernsey and Jersey. The industry also has a sizable impact on employment in other sectors of the economy, through the demand it creates for services ranging from IT to hospitality and retail.

As leading international financial centres, both Jersey and Guernsey have key roles to play in directing capital flows to fund the green transition globally. Both islands have therefore set out ambitious sustainable finance industry strategies and are members of the UN Financial Centres for Sustainability network. The majority of assets are managed, administered or sponsored by signatories to the Principles of Responsible Investment.

The green transition is set to have a major impact on the financial services industry in the Channel Islands. Key developments include:

• Investor and asset owner pressure is increasingly driving action on net zero portfolio transition and other ESG factors through the supply chain.

• Changing regulatory expectations, both locally and in other jurisdictions such as the EU and UK, are driving increased disclosure requirements for climate risk management and wider environmental and social impacts arising from investment portfolios.

• The ability to attract assets to the islands and compete for service provider contracts increasingly requires local entities to  have a clear ESG strategy.

• For the front-runners in the industry there are opportunities to secure new mandates, and develop new ESG-orientated products and services.

• There is a clear intersection with digital transformation, with several companies building and offering new ESG technology solutions for the industry, and growing sustainable finance innovation clusters on the islands.

From an employment perspective, we’re already seeing increased demand for new roles both as corporate sustainability managers and for specialist ESG strategy, investment, data integration, measurement and assurance expertise. But the far greater impact will be how the green transition reshapes the priorities, performance criteria and ways of working within the wider existing workforce. We expect to see significant greening of job roles throughout the sector, hand in hand with the shift in jobs roles we’re already seeing as a result of technology automation. Sustainability considerations will increasingly be built into functions such as client onboarding, governance, risk management, valuations, accounting and reporting throughout the industry.

Freight and passenger transport are the largest source of carbon emissions in the Channel Islands overall.

The carbon intensity of transport stems from the continued dominance of petrol and diesel vehicles. A just transition means that businesses and workers need fair and affordable access to alternatives. But a growing number of fleets are switching to cleaner electric engines. The job switch/job creation opportunities include charging point infrastructure and electric vehicle maintenance and repair. Opportunities will need to be created in further improving cycle and pedestrian infrastructure, and in the provision of enhanced public transport alternatives for commuters. Further opportunities are opening up in areas ranging from mobility-as-a-service businesses to e-bikes for cargo.

Further emissions cuts could come from more efficient logistics systems – reducing the number of hours travelling with empty loads, for example. This would create opportunities in IT and software development and application.

The greenest workplaces

When we asked workers about the environmentally friendliness of their jobs across eight sustainability outcomes (waste, emissions, pollution, biodiversity harm, resource use, water use, recycling and energy consumption), professional, scientific and technical services sectors came out on top.

When asked about communications, education, and training on green practices, professional, scientific and technical services joined the IT, finance and insurance, and public administration sectors in gaining high scores.

Employees working in professional services are the most likely to say that improving the environment is a primary objective of their job.

In a tight labour market, making the most of this sustainability potential can provide a valuable boost to recruitment and retention.