Climate Reporting is Here: How Will it Impact the Job Market?
As of January 2025, Australia has taken a significant step towards greater corporate accountability and transparency by introducing mandatory climate-related financial disclosures. This and requirements like it are helping to push business into action with 54% of those surveyed by
Future Focus feeling the pressure from regulatory requirements. This policy, designed to align with global standards, requires for now very large entities to report on their climate-related risks, opportunities, and actions. While this move is essential for a more sustainable economy, it is also poised to have a profound impact on the job market, particularly in the areas of sustainability, ESG and compliance.
The Reporting Requirements at a Glance
The mandatory disclosures apply to entities meeting specific size thresholds, including listed and unlisted companies, financial institutions, and superannuation entities. Reporting will be phased in, starting with the largest companies in 2025 and extending to smaller entities by 2027. Companies must report on their governance, strategies, risk management, and climate metrics, including Scope 1 and Scope 2 emissions from the first year and Scope 3 emissions from the second year.
ASIC has emphasised the importance of early preparation for these requirements. Businesses are encouraged to assess their readiness now, focusing on robust governance frameworks, accurate data collection, and integrating climate-related considerations into their overall risk management practices. By aligning with the International Sustainability Standards Board (ISSB) guidelines, these disclosures will ensure comparability and reliability of climate-related information, a vital step in building investor and stakeholder trust.
The disclosures aim to provide stakeholders with transparent, comparable information about how businesses are addressing climate-related risks and opportunities. While this fosters accountability, it also creates new challenges for businesses, particularly in collecting and managing vast amounts of data and ensuring compliance.
How This Will Reshape the Job Market
These new regulations will significantly impact the job market, creating a surge in demand for professionals with expertise in sustainability, ESG, and data analysis. Here are some key areas where we expect to see growth:
- Sustainability and ESG Roles: Organisations will need sustainability managers, ESG consultants, and climate analysts to lead the charge in integrating climate considerations into their operations. Imagine a finance professional transitioning their skills to assess climate-related financial risks for a major bank, or a marketing specialist leveraging their expertise to communicate a company's sustainability initiatives.
- Data and Analytics Specialists: The collection and analysis of climate-related data are central to these disclosures. This will drive demand for data scientists, analysts, and IT professionals who can manage the technology and processes needed to measure emissions, assess risks, and compile reports.
- Compliance and Assurance Experts: Mandatory reporting introduces new compliance obligations. Legal, compliance, and assurance professionals will play a vital role in ensuring that companies meet the regulatory requirements and that their disclosures are accurate and verifiable.
- Training and Education: As businesses adapt to these requirements, there will be an increased need for training and development to upskill existing employees. Professionals with expertise in training and organisational change management will become essential.
We recently surveyed our database of candidates and asked where they have noticed a growing demand for talent. 52.6% of respondents answered Carbon Reduction and Climate Action, followed by 42.1% with Sustainable Finance and ESG Reporting
Opportunities for Transition
For professionals considering a career in sustainability or related fields, this shift presents an exciting opportunity. Many organisations are seeking individuals with transferable skills who can bring fresh perspectives to these roles.
*Are you worried your current skills won't be relevant in a more sustainable economy? Careers For Purpose can help you identify transferable skills and explore new career paths.*
If you are looking to go back to formal education, areas such as engineering (mechanical, electrical, software, and renewable energy), data analysis, and accounting (carbon) are in high demand as we transition our buildings to more energy efficient operations, build new renewable energy generation, and track and reduce our energy consumption.
As mentioned above many skills are transferable with a bolstered understanding of sustainability initiatives and strategies. Short courses are available across a variety of sources; Terra.do, Coursera, Open University, and many more. These courses will not only give you valuable knowledge but also showcase your passion and interest in sustainability.
We also surveyed our database and asked what skills and qualifications they see are in demand in this current market. 73.7% of respondents agreed that technical expertise (engineering, renewable energy, scientific, etc) was in high demand followed by Project Management and Data Analysis and Reporting with 57.9% and 52.6% respectively.
What Hirers Need to Know
The new climate reporting requirements present both challenges and opportunities for employers. Here are some key steps to take:
- Conduct a skills gap analysis: Identify areas where your workforce needs upskilling in sustainability. Find out who has an interest in developing these areas and support their continued learning and development.
- Develop a clear ESG strategy: Communicate your commitment to sustainability to attract top talent. It’s becoming increasingly clear that people want to work with purpose, delivering a positive impact. If you can genuinely showcase this in your internal and external communications, it will play a big role in bringing in and retaining talent. According to Future Focus’s Authenticity Report, 35% of companies are feeling internal pressure from employees to act on sustainability.
- Partner with experts: Organisations like Careers For Purpose can help you access a pool of qualified candidates with sustainability expertise. We take detailed job briefs, take the time to understand company culture, and then conduct a deep talent search to find the best to bring into your team.
The Broader Impact
Australia's mandatory climate reporting is a crucial step towards a more sustainable future. By fostering transparency and accountability, these measures aim to drive meaningful action and build resilience in the Australian economy.
Ready to Embrace the Future of Work?
Contact Careers For Purpose today to learn how we can assist you in navigating the changing landscape of sustainability, talent search, employee attraction and retention.
Sources:
Future Focus (2024). Future Focus 2024 Authenticity AdvantageTM Report.
Stewart, Lee. How to Build Sustainability into Your Business Strategy: A Practical No Nonsense Business Guide. 2024.
