Sustainability Blueprint: Are we ready for a net-zero workforce?

This new article in my series on Climate & Sustainability turns the spotlight on an issue gaining traction ahead of COP30 but may still be underestimated across many boardrooms: the widening disconnect between climate ambition and workforce readiness.

As governments and companies accelerate their efforts towards seeking to achieve net-zero commitments, a critical question emerges: are we investing sufficiently in the people who will ultimately deliver these targets? The evidence suggests we are not. Left unaddressed, there is a risk of falling short on delivery of climate strategies and stalling broader economic transformation. The good news, however, is that organizations already have the tools to seek to close the gap – through targeted reskilling, career innovation, and human-centric productivity strategies.

Our latest Global Talent Trends research[1] reveals that only 17% of HR leaders consider their organisations to be industry-leading or making strong progress on productivity transformation. At the same time, just 35% of business leaders feel confident in identifying critical skills at an organisational level, suggesting that the skills needed for a net-zero economy may be evolving more rapidly than most companies may currently map or develop.

This matters both because regulatory changes such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) and UK pension reforms are redefining corporate expectations, and sophisticated investors increasingly view climate risk management as integral to fiduciary duty. The opportunity cost of inaction is mounting. Fortunately, some businesses are beginning to shine a light on possible ways to close the gap.

HR’s role in climate readiness

Historically absent from climate discussions, HR is now emerging as a critical enabler in shaping and mobilizing the net-zero workforce. One approach gaining traction is the integration of climate targets into performance frameworks, whether by linking them to bonus pools or introducing financial incentives tied to sustainability goals. Embedding tangible value into these targets may create both accountability and meaningful employee engagement.

Equally important is the way the sustainability agenda is delivered. For any transition to be fair and effective, workforce inclusion, in our view, must remain at its core. From climate hiring strategies to leadership development, reflecting the full breadth of talent, as younger and more diverse talent pools may increasingly seek employers whose values align with their own.

While no sector has comprehensively ‘solved’ this challenge, some are taking steps in the right direction, particularly among hard to abate industries, where we have observed employers focusing on reskilling. One global energy company, instead of initiating widespread layoffs, has instead invested in transition pathways for its engineering workforce, offering programmes in renewable infrastructure, digital technologies, and climate analytics.[2]

In manufacturing and industrial services, we are seeing companies working hand-in-hand with academic institutions to seek to build practical learning environments focused on clean energy technologies. One such organisation partnered with a technical college to co-create a “living lab” – a fully operational microgrid system that serves both as a renewable energy installation and a hands-on training ground. The facility allows students and professionals to develop real-world skills whilst seeking to gain industry-recognised micro-credentials, bridging the gap between education and employability as well as closing this gap from both the supply and demand side.[3] By training talent in the systems that underpin the energy transition, a company can seek to ensure that its own operations have access to skilled professionals ready to scale low-carbon solutions.

In each sector, by clearly identifying which skills may be valuable in the future and where opportunities lie, these centres may help enable individuals and organisations to make more informed decisions about training and workforce investments. They also foster a culture of lifelong learning, helping people build careers that remain resilient in the face of rapid economic and technological change.

A win for careers, companies and economies

It is also worth noting that this is not solely a climate issue, it is equally a career issue. When individuals are empowered to upskill and adapt, they may enhance their earning potential, job security, and overall wellbeing. Our insights reveal that four in five people believe reskilling will enhance their chances of promotion.[4]

Companies that adopt a long-term, strategic approach to skills, not merely headcount, are, in our opinion better positioned to retain talent, navigate regulatory change, and capture market opportunities as the sustainability agenda accelerates.

Looking ahead: what’s needed now

As COP30 approaches [and please DM me if you're heading there as I will be in attendance in Belem], we believe workforce transformation is set to move higher up the agenda. While regulation will continue to guide companies in the right direction, in our opinion, long-term success ultimately hinges on proactivity, enabling people to build meaningful careers within a net-zero economy, and recognising that talent is an integral part of the climate solution. By seeking to align skills, incentives, and strategy, organizations may potentially turn climate ambition into climate capability. Net zero is not just about targets. It’s about the people who can make it happen.

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[1] All responses are sourced from the Mercer Global Talent Trends report obtained in 2024-2025. Responses were provided by 1,800 HR leaders across 24 key markets and 17 industries. It is important to note that respondents did not receive any form of compensation. It is important to recognize that survey results are subject to inherent limitations and uncertainties. The survey results may not capture all relevant factors or market conditions. These results should not be construed as personalized investment advice. 

 [2] Aramco, Workforce Empowerment – training, employee development and capacity building

 [3] Siemens, Xcelerator Marketplace, Humber Polytechnic and Siemens partnership

 [4] https://www.mercer.com/our-thinking/career/global-talent-hr-trends.html