SMEs lack incentive to invest in green skills

22 Apr 2022, 6:00

Not much is in place to encourage smaller construction businesses to go green, write Andrea Laczik and Kat Emms

This week, the Department for Education published its sustainability and climate change strategy. It includes pledges such as all FE staff integrating sustainability into their teaching, and new capital projects being evaluated on whether they are net zero.

But here, we want to focus on a big industry partner for FE.

When it comes to the hugely pressing issue of climate change, the construction sector has a particularly important role to play. By some estimates, construction contributes up to 11 per cent of global carbon emissions. On Earth Day, that’s an especially sobering thought.

So, to achieve net zero carbon emissions by 2050 will require immediate action within the industry on a scale never seen before.

In our Greening Construction report out last month, we explored what green skills are required and the challenges the construction industry faces.

In partnership with the University of Oxford, The Centre for Skills, Knowledge and Organisational Performance (SKOPE) and the Environmental Change Institute (ECI), we combined a literature review, document analysis and stakeholder input.

Too much focus on STEM over soft skills

In mainstream narratives, net zero is often framed in terms of developing science, technology, engineering and maths (STEM) skills.

But Edge’s report outlines that communication, leadership and general business and administrative skills, as well as professional integrity and sustainable dispositions, are also vital to the green revolution.

Professional integrity is vital to the green revolution

In the construction industry, which already lacks regulation, this will mean a huge overhaul of the skills and training system.

This cannot happen without significant sector input.

Fortunately, organisations such as the Federation of Master Builders (FMB) – the UK’s trade body for small and medium enterprises and micro-building companies – are keen to do their part.

Lack of incentives

Greening construction poses a huge challenge to the sector, but it’s also a market opportunity worth between £3.5 and £6.5 billion a year or more.

Unfortunately, there’s currently little incentive for SMEs and micro businesses – which make up 99 per cent of the construction industry – to invest in green skills.

This is because their current skills are already in high demand. This reduces any incentive to invest in training and resources, which is challenging for smaller businesses to achieve.

There’s also a more systemic issue at play. At the report’s launch, Brian Berry, FMB chief executive, explained: “When governments introduce policies, such as the Green Home Grants scheme, and then shuts them down, small businesses lose confidence in investing.

“There’s currently no long-term government plan to working with the building industry to upskill and deliver a carbon-zero built environment.”

But the climate will not wait. Things must change now.

Diversity and employment

The construction sector’s current training landscape is patchy and confusing at best.

To circumvent this problem, many companies recruit from those they know, resulting in a shortage of workers and a lack of diversity in the sector.

Bricklayers, carpenters and other tradespeople are all in short supply – vacancies in the industry are currently at an estimated 42 per cent.

Furthermore, women constitute only around 11 per cent of construction sector employees, while ethnic minority workers constitute only seven per cent.

Brexit and the pandemic have exacerbated these problems. But developing green skills presents an opportunity to tackle skills shortages and make the industry a more attractive option for a broader workforce.

Solutions for a zero-carbon built environment

As Edge’s report emphasises, and as Berry agrees, the government needs a longer-term strategy for greening construction. Berry said: “The government has already created various initiatives, flexible apprenticeships, bootcamps and T Levels.

“But many small companies don’t know how to access these. If we’re to deliver a zero-carbon built environment, industry, government and the education sector must collaborate and pull these into a long-term strategy for skills.”

Despite the myriad challenges, there’s one positive foundation to build on. And that’s the increasing desire of further education learners to combat climate change.

With close collaboration between government, industry and training providers, it’s eminently possible to transform the construction industry into a vehicle for a more sustainable future.

Latest education roles from

Chief Education Officer (Deputy CEO)

Chief Education Officer (Deputy CEO)

Romero Catholic Academy Trust

Director of Academy Finance and Operations

Director of Academy Finance and Operations

Ormiston Academies Trust

Principal & Chief Executive

Principal & Chief Executive

Truro & Penwith College

Group Director of Marketing, Communications & External Engagement

Group Director of Marketing, Communications & External Engagement

London & South East Education Group

Sponsored posts

Sponsored post

Supporting the UK’s Transport Decarbonisation Plan Through Skills

The UK Government’s Decarbonising Transport: A Better, Greener Britain strategy sets a legally binding path towards a net-zero transport...

Advertorial
Sponsored post

Project power: ASDAN expands its qualifications portfolio

From 2026, ASDAN’s planned Foundation and Higher Project Qualifications will sit alongside its Extended Project Qualification[CM1] , creating a complete...

Advertorial
ATAs

Spotlight on excellence: Nominations now open for the Apprenticeship & Training Awards 2026

Nominations are open for the 2026 Apprenticeship & Training Awards, celebrating outstanding employers and providers with national recognition, a...

FE Week Reporter
Sponsored post

Funding Adult Green Skills

New sources of funding are available to finance the delivery of green skills to all learners. Government policy is...

Tyler Palmer

More from this theme

net zero

Green skills funding results delayed over premature course adverts

Providers were caught promoting courses before funding had been confirmed

Shane Chowen
Long read, net zero

GSAP: FE’s secret weapon for net zero training

Former fisherman Mike Blakeley tells how he’s building the Green Skills Advisory Panel so FE and industry can make...

Jessica Hill
net zero, Sustainability

DfE agrees to publish ‘urgent’ sustainability plan

All settings to have a climate action plan ‘in place by 2025’, DfE assures MPs

Anviksha Patel
net zero

DfE climate change strategy: New FE teachers will be required to build sustainability into their teaching

Existing college staff will however not be required to include sustainability into their teaching

Will Nott

Your thoughts

Leave a Reply