Finance Professionals in a Changing World: The Essential Skills

This article has been co-written by Simon Thompson, Akash Kaura and Efrem Bycer.

Climate change is having an inescapable impact on our world and on the world of work.

It’s one of the key factors driving what LinkedIn estimates will be 70% skills turnover across the board by 2030. In a similar way to the transformational impact on careers, LinkedIn data show how “green” skills[1]are increasingly prevalent among workers and required by employers. With the need to mobilize trillions in climate finance to meet the objectives of the Paris Agreement and other sustainability goals, the role green skills will play in the careers of finance professionals is coming more sharply into focus.

Given how important finance is to the climate transition, we might have already expected to see green skills widely adopted by finance professionals. Surprisingly, the data tell a different story. Data from the 44 countries included in the LinkedIn 2024 Global Green Skills Report shows that finance ranks near the bottom in terms of green talent concentration – that is the percentage of workers with at least one green skill – when compared to other industries. Globally, around 1-in-6 workers have at least one green skill. For finance professionals, that number is closer to 1-in-10.

[1]LinkedIn defines green skills as skills related to promoting environmental sustainability and combating the impacts of climate change. LinkedIn’s team of taxonomists has evaluated the more than 41,000 unique skills on LinkedIn to identify approximately 1,200 green skills which fall into the following categories: pollution prevention, waste prevention, energy management, renewable energy generation, environmental remediation, ecosystem management, sustainability education, sustainability research, environmental auditing, environmental policy, sustainable procurement, and environmental finance.

At the same time, demand for workers with green skills in the finance sector is growing rapidly. While the green talent concentration of finance workers grew an average of 2.7% annually between 2021-2024, demand for workers with green skills (as measured by the share of paid job postings on LinkedIn that require green skills) grew an average of 7.2% annually over the same period of time. The difference between growth on the demand and supply sides exceeds the global gap: 2.7x for finance vs. 2x for all industries. The share of new hires with green skills in the finance industry is 20% higher than the current green skills concentration.

In multiple instances the fastest growing green skills in the financial services sector are those which, at first sight, don’t seem to be directly related to finance. This perhaps reflects the increased rate in which sustainability is being embedded within the finance sector. Finance professionals need to develop skills and expertise that support clients and customers in developing and implementing climate solutions in the transition to low carbon, nature positive business models.

Sustainable finance skills are also growing across other sectors. The data shows a range of specialist skills increasing in demand, mostly related to carbon accounting and carbon markets due to the recognition of rapid growth in these areas:

*Sustainable finance includes skills related to utilizing financial instruments as a means to promote activities that protect the environment.

Tackling the green and sustainable finance skills gap requires concerted efforts from educational institutions, employers and finance professionals to foster and maintain the knowledge needed to support the development of the finance sector. The good news is that this is happening:

By Educational Institutions

Universities, business schools, professional bodies and others play pivotal roles in embedding green skills and knowledge into their curricula. Not just as elective options but as part of the core knowledge that all students and professionals are expected to gain during programmes of initial professional education. In the academic sector, this work is being led by bodies such as Business Schools for Climate Leadership and the Open Climate Curriculum. The UK’s Sustainable Finance Education Charter, whose professional body members support more than one million finance professionals globally, provides a model for other countries seeking to embed green finance knowledge, skills and application in professional education.

By Financial Services Firms

Employers must invest in continuous learning and development programs to upskill their workforce, not just to meet short-term regulatory and compliance requirements. Building the capacity and capability to manage sustainability risks and take advantage of opportunities driven from the transition to a net zero world requires a shift from centralised, expert sustainability teams to ensuring green finance skills and knowledge is embedded in all roles across the firm. This is especially true of client-facing roles where expert advice can help position the firm and its employees as trusted advisers.

To make all finance sustainable, green practices will need to be integrated into every professional financial decision; in advice given to clients and customers, into every credit, within risk and investment decisions and into strategic decisions taken by financial institutions at the highest levels. This will require all finance and supporting professionals to develop at least a basic understanding of the principles of green and sustainable finance and the skills to apply these in their everyday professional practice.

By Professionals

Finance and supporting professionals should take responsibility by proactively seeking opportunities to develop and demonstrate their knowledge and of the principles and practice of green and sustainable finance.

Professionals can also develop their own skills by working on relevant projects, participating in sustainable finance events and obtaining additional qualifications and professional certifications to enhance their competencies and career prospects.

Climate change is already impacting the world of work for many. It has never been more important that finance professionals with green and sustainable finance skills use these to help shape a finance sector where sustainability is integrated into every professional financial decision.

Further Skill Development

There are more learning resources and materials available than ever before to support career progression and help develop green skills. Green and Sustainable Finance by Simon Thompson is a comprehensive guide for professionals who want to gain a practical understanding of sustainable finance. There are many free-to-access learning resources too, provided by organizations such as the Global Capacity Building Coalition and by LinkedIn Learning who offer a wide and ever-growing range of introductory (e.g. Sustainability Foundations) and specialist (e.g. AI and Sustainability) courses.

Save 30% on Green and Sustainable Finance: Principles and Practice with discount code AFB30