The business world is undergoing a profound transformation. Sustainability, once considered a peripheral concern or merely a public relations exercise, has emerged as a defining megatrend that is fundamentally reshaping how organizations operate, compete, and create value. This shift represents more than a passing fad; it signals a permanent recalibration of business priorities in response to mounting environmental challenges, evolving societal expectations, and changing regulatory landscapes.
The evidence for this transformation is compelling and continues to grow. In 2022, an overwhelming 98 percent of S&P 500 companies published sustainability reports---a clear indication that environmental, social, and governance (ESG) factors have moved from the margins to the mainstream of corporate strategy. But publishing reports is merely the beginning. Businesses are increasingly recognizing that sustainability issues present both material risks that must be managed and strategic opportunities that can drive innovation and growth.
“The value of such skills in the success of our business and in the eyes of our clients cannot be overstated,” notes William Tafuto, co-founder and retired president and CEO of a science and engineering consulting firm, highlighting the growing strategic importance of sustainability expertise.
Perhaps most telling is the dramatic surge in demand for sustainability talent. According to LinkedIn's 2024 Green Skills Report, global demand for green talent increased by 11.6 percent between 2023 and 2024, outpacing supply which grew by just 5.6 percent during the same period. The hiring rate for professionals with green skills is now 54.6 percent higher than the overall hiring rate, reflecting organizations' urgent need for expertise in navigating sustainability challenges.
Yet as demand accelerates, a critical question emerges: What specific skills and competencies do businesses need to successfully integrate sustainability into their operations and strategy? To answer this question and provide guidance for both organizations and educational institutions, the Kogod School of Business at American University conducted a comprehensive Sustainability Skills Survey across diverse industries.
The results offer valuable insights into the evolving landscape of sustainability in business and highlight the significant skills gap that must be addressed to meet the challenges and opportunities ahead.
The Sustainability Skills Survey was designed to identify the key skills and competencies that companies seek when hiring for sustainability-focused roles. The research team collected 191 valid responses across more than 20 industries, ensuring representation from both large corporations and smaller organizations.
Respondents represented a diverse cross-section of organizational roles including dedicated sustainability leaders (22.1 percent), C-suite executives (16.6 percent), as well as finance (9.4 percent) and operations (6.6 percent) professionals. The remaining participants came from various departments including human resources, marketing, and research and development reflecting the cross-functional nature of sustainability initiatives in today's business environment.
For clarity and consistency, the survey defined “skills” as the specific knowledge and abilities that workers possess that can be effectively applied in performing tasks. “Competencies,” meanwhile, were defined as the observable behaviors that successful employees demonstrate on the job as a result of their knowledge, attitudes, and traits. This distinction is important for understanding both the technical capabilities and behavioral characteristics necessary for sustainability leadership.
The survey's scope was intentionally broad, exploring not only current sustainability practices but also future needs, perceived skills gaps, and the obstacles organizations face in developing and implementing sustainability strategies. This comprehensive approach provides a nuanced picture of the sustainability landscape and the workforce development imperatives it creates.
A striking finding from the survey was the degree to which businesses view sustainability skills as strategically important. A clear majority of respondents indicated that having employees with sustainability skills is either “important” (22 percent) or “very important” (40 percent) to their organization's overall success and competitiveness over the next three to five years.