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com +44 (0)845 257 8030 HUMAN RESOURCES AND THE GREEN JOB MARKETPART 1 DEFINING GREEN JOBSThe emergence of issues related to the environment has created a significant impact inthe employment market. Organisations now have to respond to both the pressures thatgreen legislation is creating, such as legislative compliance, and the commercialopportunities that are emerging. Employment needs are being created in a range ofareas including energy generation, energy efficiency, waste and resource managementand corporate responsibility. This job creation is not limited to any single marketsector; it is impacting the public and private sector, charities and NGOs, largecorporates and SMEs.It is important to understand what is meant by the green job market in the UK andhow it is going to affect the Human Resource function in the near term. It is in theinterest of politicians to loosely define green jobs; this allows them to claim credit fora wide range of newly created jobs even if the connection to the green job market istenuous. Such loose definitions are of no help to anyone involved in workforceplanning and the creation of green jobs. To facilitate this activity it is necessary to putsome definition around the green job market. We divide the market into two keysegments;Dark Green Jobs: these are jobs where people are hired specifically for theirknowledge of sustainability, the environment or climate change. They are likely tohave a qualification in one of these areas and may well have the job title ofsustainability consultant within a consultancy firm or be an in house expert such asHead of Environment or energy manager. This is a small and specialist marketplace but due to current and upcoming legislation is likely to expand quickly.Pale Green Jobs: these are roles that have been created by climate and environmentalpolicy, but where the person is hired for specialist knowledge of another area. Anexample might be a carbon trader in an investment bank, whose value to the companylies in his/her trading skills rather than their knowledge of sustainability.The area of Pale Green jobs is hard to measure. We estimate that these jobs couldaccount for over 500,000 new UK jobs over the next five years, assuming thatappropriate legislation is put in place. At least half of these

should come fromrenewable energy. We expect the following Pale Green Job category to comprise: Environmental lawyers Carbon traders Accountants (including carbon auditors) Scientists (especially for Nuclear) Management (including Non-executive directors) Sales people Support roles 2. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030Beyond Pale and Dark Green, we split the green job market into three furthercategories: Environmental jobs - this is a well established market and includes environmental management, environmental planning and waste management. Example job titles in this area would include environmental manager, ecologist and air quality consultant. Climate Change and Energy jobs - this is a newer feature within the job market and has been building pace over the past three years. This category includes carbon finance, clean tech, emission reduction, energy management and renewable energy. Example job titles in this area would include energy or climate change manager, biofuel supply chain manager and renewable energy engineer. Corporate Responsibility jobs - this includes socially responsible investment, ethical supply chain, community engagement and internal and external communication. Example job titles in this area would include CR/sustainability manager and ethical supply chain manager. Many of these jobs may not be traditionally classified as green, particularly those that focus towards the social side of the spectrum, such as poverty alleviation and labour and human rights. This is a relatively small market but is likely to continue to grow over the coming years, particularly as climate and energy issues become increasingly central to the economy.Across all of the above categories common job titles such as regulatory lawyers,accountants, engineers and scientists are found. There is a degree of cross overbetween these three categories - for instance, a CR Manager may often oversee someof an organisations environmental obligations.The vast majority of green jobs fall into what is known as the Low Carbon Goods andServices sector of the UK economy. According to the Department for BusinessEnterprise & Regulatory Reform (BERR), in

2007-08 the UK market value of thisFor Human Resources to be able to respond effectively tocurrent or future impact on the organisation the function willneed to understand the content and impact of environmental /climate change legislation.__________________________________________________ sector was estimated to be worth 107 billion with the UK claiming a 3.5% marketshare of the entire global market. BERR also concluded that there were 881,000 jobsin the UK in this sector, but it is realistic to expect that this figure could grow by halfas much again by 2015. 3. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030The green job market, sooner or later will end up affecting all sectors. It does notmatter whether it is public service (central or local), the charitable sector or theprivate sector, all will be impacted to a greater or lesser degree. For some it hasalready started.For Human Resources to be able to respond effectively to current or future impact onthe organisation, the function will need to understand the content and impact ofenvironmental / climate change legislation.This is essential so that it is able to plan the future organisation and resourcenecessary to support it, be that in the area of utility management, the development ofenergy efficient systems or legislative compliance.2. AN EXAMPLE DRIVER FOR GREEN JOB CREATIONThe major piece of current legislation that will impact large public and private sectororganisations initially (followed by a large number of others over time) is the CarbonReduction Commitment Energy Efficiency Scheme (CRC). This legislation is designedto stimulate energy efficiency in organisations that might otherwise be resistant toimplementing energy efficient measures. Approximately 5000 organisations will beinitially affected by the CRC but on the basis that there is an increasing internationaldrive to adopt similar cap and trade schemes, the CRC is highly likely to be expandedover time.The immediate concerns for those organisations affected by the CRC are: The cost of measuring and reporting annual emissions The cost of buying allowances to cover emissions Penalty costs for not having enough allowances to cover

emissions Cash flow problems associated with the timing of recycling emissions back to the company Bonuses and penalties based on positions in the CRC league table Reputational damage caused by poor performance on the published league tablesAnd, of course having staff resource to manage this issue. This is not an issue that willhappen in the distant future. For the estimated 5000 organisations affected, thelegislation will be enacted in April 2010 when any organisation with half hourlyelectricity meters an estimated 20,000 will have to register with the EnvironmentAgency. For about 15,000 organisations that is all that happens until 2013 when theywill be required to re-register. The remaining 5000 will be legally obliged to calculatetheir carbon emission for 2010/11. We have already experienced an increase indemand for energy managers and carbon reduction specialists which we consider tobe a direct result of the Carbon Reduction Commitment. 4. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030PART 3 - THE IMPLICATIONS FOR THE HUMAN RESOURCE FUNCTIONGiven this background we believe that there are three major areas where the HumanResource function needs to demonstrate leadership in the in the area of green jobs.These are: Energy Management Corporate Responsibility Performance ManagementFirstly Energy Management: although the CRC is extremely important, it is by nomeans the sole driver of sustainability and energy management initiatives. Manyorganisations, irrespective of whether they are immediately impacted by the CRC,have still proceeded to hire energy and sustainability managers because it isorganisationally important that appropriate strategies are in place to manage energyand utility procurement and to ensure cost containment and reduction. The profile ofthese roles has been significantly heightenedThere is very little evidence of the HR function providingleadership in this area in the joint definition of organisationalneed, financial imperatives and role definition.__________________________________________________o ver the past two years; we have seen some extremely selective hiring at

senior levelswith the aim of introducing effective long term energy management strategies. Theimperatives are now becoming apparent particularly to the organisation, not only interms of the carbon footprint, but also in terms of cost reduction.When it comes to the creation and coordination of green job opportunities withinorganisations, the HR function has to date, worked in a reactive fashion, responding tothe requirements of particular job functions or general management.There is very little evidence of the HR function providing leadership in this area in thejoint definition of organisational need, financial imperatives and role definition.By joint definition we mean working with the appropriate functional management andthe finance function to drive the issue of energy management within the organisation.There is some worrying data pertaining to the current CRC legislation. A surveycommissioned in November 2009 by SAP a global provider of software solutions,observed that only one third of companies were fully prepared for the CRC despite itonly being 130 days away at that time. 20% had not even started planning or had noidea what measures they needed to take. Functional Management led by HumanResources should be ensuring that these major issues are addressed.Irrespective of the CRC there is an overwhelming need going forward, fororganisations to manage the issue of energy be that in the area of utility management, 5. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030emission reduction or the use of renewable energy. The financial implications clearlyneed to be understood whatever the size and nature of the organisation and theappropriate resource needs to be put in place to manage these issues for the long term.There needs to be a robust workforce plan in place to ensure that the criticalorganisational needs are met. There is little doubt that the resource available on thejob market, be it core or complementary, is going to become increasingly scarce.Secondly Corporate Responsibility: In the light of the recent economic downturnand recession there has been a loss of trust between the public and many organisationsand corporations. We see many corporations working hard to rebuild bridges and torestate and demonstrate their commitment on a

range of issues. There is certainly anacceleration of activity in this area that we expect to continue for the foreseeablefuture. Corporate responsibility requires that organisations be: Economically viable Environmentally sound Exercising responsibility to their employees Socially responsible Adaptive to stakeholder interests Responsive to shareholders, customers and local and global stakeholdersWe additionally see the area of diversity and inclusion being included under thebanner of corporate responsibility.Human Resources is in an ideal position to apply considered advocacy in this area.The 2006 Companies Act had the impact of bringing a number of stakeholder issuesinto legislation. The Board now has responsibilities that extend beyond theSomeone has to bring together the strands that now comprisecorporate responsibility within the organisation in terms ofdefining the organisations position on this issue.______________________________________________________ _____________shareholder. It must take into account issues such as the businesss impact onemployees and society and the environment.It is important that the HR function displays leadership in this area at the most seniorlevel to ensure that organisations are aware of all the issues and ramifications bothcurrently and in the future. In 2001 the Economist stated:The next big thing in brands is corporate responsibility - it will be clever to say thatthere is nothing different about our product or price but we do behave wellThat may well have been the perception at the beginning of the decade but thingshave moved on at a pace since then and what was then perceived as a soft activity 6. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030has now evolved into one where the outcomes include enhanced financialperformance, brand value, long term sustainability for both the company and societyand enhanced relationships with government and communities.Someone has to bring together the strands that now comprise corporate responsibilitywithin organisations in terms of defining the organisations position on this issue.This will involve working with the finance function to define the financial advantage,working with the

marketing function to establish brand value, and with thecommunicators to establish a strategy for community and government relations. Withits clear interest in worker commitment Human Resources would appear to be in astrong position to facilitate this effort and drive it through to Board or ExecutiveManagement level. Working with other functional leaders, it will also allow HR toestablish the workforce needs in all of the appropriate areas.Thirdly Performance Management: Always a contentious issue for both theorganisation and the HR function. The ability of organisations to face up to the issuesof measurement, evaluation and the reporting on individuals and teams along with theorganisation itself, has presented issues that have often failed to be addressed.Whilst there is no doubt that issues of energy management, sustainability andcorporate responsibility create huge challenges for both organisations and the HRfunction, they also create opportunities in the area of performance management. Theperformance criteria within these areas are mostly easily definable and measurableAsfar as the Carbon Reduction Commitment is concerned thekudos of a high position in the CRC tables and conversely thepenalties arising from low positions in the tables and theconsequent damage to the organisations reputation will beimmediately apparent._______________________________________________and in most cases it is difficult for organisations and individuals to fudge issues interms of definition or outcome.We believe that the HR function should assume leadership to ensure that theorganisation understands what it needs to measure in these areas. It needs to ensurethat where performance management is directly linked to reward then both theindividual and the organisation are incentivised to achieve pre-defined and objectivegoals. Both the positive and negative consequences for an organisation will beimmediately apparent in such areas as high energy and utility costs.As far as the Carbon Reduction Commitment is concerned the kudos of a highposition in the CRC league tables and conversely the penalties arising from low

7. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030positions in the tables and the consequent damage to the organisations reputation willbe immediately apparent. These outcomes should be reflected in the rewards made tothe organisation and individuals.In this article we have tried to define what we believe are the major issues for HRpractitioners and leaders in the vast majority of organisations. There is no doubt thatenergy management, sustainability and corporate responsibility create hugechallenges and opportunities for the HR function in multiple areas. There is asignificant opportunity for the HR function to assume a leadership position inaddressing these issues. It should not be ignored.ABOUT THE AUTHORSAndrew Cartland: Managing Director of Acre ResourcesAndrew is the Managing Director and Cofounder of Acre, having established thecompany in 2003. Since this time, with the support of his colleagues, he has builtAcre to be a globally recognised recruitment brand within the fields of sustainability,environment and climate change.For more information, contact Andrew Cartland on 020 3170 8031John Cartland: Non-Executive Director of Acre ResourcesJohn is a Non-Executive Director at Acre and previously held positions with severalNorth American corporations including Digital Equipment Corporation and NortelNetworks where his most recent positions were those of Vice President CorporateCompensation and Vice President of Human Resources for Europe Africa and theMiddle East.For more information, contact John Cartland on 0118 940 3309Notes to editors: Established in 2003, Acre Resources is the leading specialist recruitment company for the Corporate Responsibility, Climate Change and Environmental sectors. Acre was the first recruitment agency of its type, established by Andy Cartland and Tom Leathes, both of whom have extensive experience in the green sector and providing top quality recruitment solutions Acre is the first choice for a range of clients, from the biggest global corporations to market-leading consultancies and NGOs

8. www.acre-resources.com mail@acre-resources.com +44 (0)845 257 8030 Acres head office is located in central London with a satellite office

in Chicago Acre Resources is one of the organisations behind the market leading CSR Salary Survey which is now in its third year. The survey provides unique insight and data on the roles, salaries and backgrounds of CSR professionals. Acre also undertakes the Carbon Salary Survey, a global report about the Climate Change job market.Acre Resources: www.acre-resources.comAcres submission to the governments Environmental Audit Commission:http://www.publications.parliament.uk/pa/cm200809/cmselect/ cmenvaud/memo/greenjobs/uc2602.