Lack of ‘green skills’ could jeopardise sustainability goals, BDO warns
Australia will struggle to meet its climate and ESG goals due to a lack of sustainability-ready talent, according to research from BDO.
The professional services firm has revealed a growing shortage of sustainability-ready talent, which will likely threaten the country’s natural resources and the energy sector’s ability to meet its climate and environmental, social and governance (ESG) goals.
In its recent Sustainability Trends Report, BDO undertook a national survey exploring how organisations were responding to the challenges and opportunities of the evolving ESG landscape.
The survey included insights from 107 senior leaders who highlighted that businesses were struggling to attract, develop and retain the necessary skills needed to help deliver sustainability commitments, specifically in technical and operational roles tied to decarbonisation and circular economy practices.
The report said that natural resources and energy companies were formalising their approach to sustainability through the establishment of dedicated ESG functions, while also seeking ways to embed responsibility across the business.
“Tensions remain between stakeholder expectations and the operational realities of resource-intensive industries. Technology is emerging as a key enabler, with real-time data, digital tools and process innovation supporting more informed decision-making and improved accountability,” the report said.
“Yet capability gaps persist. Many organisations are struggling to build the workforce needed to deliver on sustainability objectives, particularly in technical and operational roles requiring specialised “green skills”. At the same time, the regulatory and investor landscape is becoming more complex and demanding, both domestically and globally.”
The gap in green skills was highlighted to be a crucial issue based on the reinforcement of the current trend that sustainability was no longer a peripheral function, but rather a “core driver” of resilience, innovation and future competitiveness.
Another crucial element within the sustainability sector and the need to increase talent linked to the introduction of mandatory climate-related financial disclosures under the Australian Sustainability Reporting Standards, which came into effect on 1 January 2025.
The survey found that despite broad recognition of the challenge, only 32 per cent of organisations expected to prioritise sustainability resourcing over the next five years.
Kristy Porter, BDO sustainability partner, said they put the workforce investment behind other focus areas like product innovation, technology infrastructure and supply chain transformation.
“Sustainability ambition is growing – but capability isn’t keeping up. Many businesses are facing a widening skills gap that threatens to undermine ESG delivery at both strategic and operational levels.”
“Building a workforce that understands emissions tracking, sustainable production, and ESG reporting isn’t optional – it’s foundational to future competitiveness.”
Porter noted that the report revealed the current workforce strategies were falling short in areas such as future-skilling, sustainability literacy and structured career pathways, as respondents labelled future-skilling, the knowledge gap and inadequate training as the top barriers to talent development in sustainability.
The report findings signalled a looming capability crunch, Porter said.
“Without urgent and deliberate workforce investment, the sector risks losing momentum in the transition from compliance to long-term ESG value creation.”
“Green skills are now critical infrastructure for business. We need more intent – we need pipelines, programs and prioritisation.”
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