Businesses encounter challenges in their ESG implementation due to a deficiency in necessary skills.
In the rapidly evolving landscape of business, Environmental, Social, and Governance (ESG) standards are becoming increasingly important for companies in Vietnam. However, a significant skills gap persists in the workforce, particularly in the realm of ESG. This article explores the key factors contributing to this gap and proposes solutions for building an effective ESG talent pipeline.
Challenges in ESG Workforce Training
The skills gap in ESG workforce training is due to several factors. Rapid changes in technology and ESG requirements have outpaced Vietnam's labor supply and training systems, leading to insufficient anticipation of future ESG demands and a lack of adequate training infrastructure and programs.
Moreover, ESG is an interdisciplinary field requiring integrated knowledge across Environment, Social, and Governance pillars, combined with a mindset open to technology and digital transformation. Many current professionals lack this cross-sectoral and digital competency, making specialized ESG skill sets scarce.
Another challenge lies in the misalignment between education and market needs. Current education and training programs do not fully prepare workers for evolving ESG roles. There is a need for universities and training institutions to revamp curricula to include updated, frontier ESG and related technological skills such as digital literacy, AI, and cybersecurity.
Lastly, the limited social protection and challenges faced by the informal workforce hinder inclusive workforce development. Many workers, especially in informal sectors or low-skilled roles, have restricted access to structured training or reskilling opportunities.
Building an Effective ESG Talent Pipeline
To address these challenges, collaboration among education systems, training institutions, and companies is crucial. Universities and training centers should develop ESG programs that integrate environmental science, social responsibility, governance principles, and digital skills aligned with business needs.
Establishing dual-degree or fast-track programs and competency frameworks can allow faster training and better alignment to ESG skills demand, as seen in finance-tech talent training. Companies can partner with education and training institutions to provide hands-on ESG skill development tailored to local industry needs.
Integrating national climate and employment strategies with workforce planning and social protection ensures a more inclusive and resilient ESG labor market. Promoting continuous upskilling and reskilling opportunities encourages an inclusive, human-centered workforce transformation, particularly for workers in informal and low-skilled roles.
Strong collaboration between academic institutions and businesses is essential to bridge the gap between theoretical knowledge and practical application in ESG training. Systems for data collection, analysis, and transparent reporting, which rely heavily on technology, particularly blockchain and AI, play a crucial role in ESG work.
In conclusion, by adopting a collaborative approach that focuses on revamping curricula, establishing practical, sector-specific training programs, leveraging public-private partnerships, promoting continuous upskilling, and addressing the needs of the informal workforce, we can overcome the current ESG skills shortage and create a future-ready workforce equipped with both specialized technical knowledge and adaptive, cross-disciplinary competencies essential for ESG implementation in Vietnamese businesses.
- The fast-paced advancement of technology and ESG requirements is overwhelming Vietnam's labor supply and training systems, causing an inadequate anticipation of future ESG demands.
- ESG needs cross-sectoral and digital competencies, yet many current professionals lack this integrated knowledge across Environment, Social, and Governance pillars.
- Universities and training institutions should revise curricula to incorporate updated, frontier ESG skills, such as digital literacy, AI, and cybersecurity.
- A lack of structured training or reskilling opportunities hinders inclusive workforce development, particularly for those in informal sectors or low-skilled roles.
- Collaboration between education systems, training institutions, and companies is vital to create effective ESG talent pipelines by offering integrated programs in environmental science, social responsibility, governance principles, and digital skills.
- Companies partnering with education and training institutions can provide tailored hands-on ESG skill development to meet local industry needs.
- Integrating national climate and employment strategies with workforce planning and social protection ensures a resilient ESG labor market, promoting inclusive upskilling and reskilling opportunities.
- Strong collaboration between academic institutions and businesses is essential to bridge the gap between theoretical knowledge and practical application in ESG training.
- Leveraging public-private partnerships, revamping curricula, establishing practical, sector-specific training programs, and addressing the needs of the informal workforce can create a future-ready workforce possessing both essential technical knowledge and adaptive, cross-disciplinary competencies for ESG implementation in Vietnamese businesses.
