Chamber Colloquium 13 February 2014 Introducing skill needs

Chamber Colloquium 13 February 2014 Introducing skill needs of the Chemical Sector with respect to the Green Economy Atul Padalkar

Definitions and Key Concepts 1. Definition of the Green Economy “Results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” 2. Green Economy and Sustainable Development “Economic development Model based on knowledge of ecological economics” 3. Low Carbon Economy 4. Green Jobs 5. Green Growth 6. Green Chemistry

Research Methodology • Mainly quantitative, supported with qualitative inputs • A judgemental convenience sampling approach • Levy paying members of the CHIETA in KZN • Top 80% cumulative employment contributor organisations submitting WSP-ATRs • Sampling framework for representation across subsectors and size from the Universe • Pilot interviews followed by quantitative study

Limitations of the Study • Limited to the Chemicals Sector only. • Limited to Levy Paying members of the CHIETA. • Most respondents were HR/WSP practitioners. • Limited to KZN. However, specific stakeholders of strategic importance included. • Limited scope does not allow this to be representative of South Africa or of other sectors. • Opportunity for a wider and deeper study in future

Key International Green Economy Trends • Growth of Environmental Goods in Global Trade • Growth in Environmental Certifications such as ISO 14000 • Growth in Environmental Labelling • Growth in Public Policy Instruments and Interventions

Opportunities Arising • The transition to a green economy increases in wealth, in particular ecological commons, but also, over a period of six years, produces a higher rate of GDP growth. • There is an link between poverty eradication and better maintenance and conservation of the ecological commons, arising from the benefit flows from natural capital that are received directly by the poor. • In transition to green, new jobs are created that over time exceed the losses in brown economy employment.

Literature Review Multi-disciplinarian Approach Required • International Context • • • UNEP ILO OECD WWF Various NGOs • South African Context • IDC-DBSA • DEAT • DTI • Chemical Industry Context (Local & International) • Chieta & its equivalent International counterparts • Skills Context • NSDS • SETAs

Key Findings

Legislation & Regulation have played an important role Major Impact (Weight 4) Customers/Market Demand Patterns 6. 45% 4 Significa nt Impact (Weight 3) 17. 74% 11 Processes 11. 29% 7 16. 13% 10 29. 03% 18 25. 81% 16 17. 74% 11 62 1. 77 3. 28% 2 13. 11% 8 22. 95% 14 27. 87% 17 32. 79% 20 61 1. 26 Legislation and regulations 16. 67% 10 21. 67% 13 23. 33% 14 20% 12 18. 33% 11 60 1. 98 Parent Company 10. 81% 4 27. 03% 10 8. 11% 3 27. 03% 10 37 1. 68 40% 2 20% 1 0% 0 40% 2 5 2. 20 Staff Other Reasonable Impact (Weight 2) Low No impact Impact (Weight 0) 1) 25. 81% 16 29. 03% 18 Total Average Weighting 20. 97% 13 62 1. 60

…As most Companies have been impacted by the “Green Economy” imperatives. .

…. . Which is expected to increase in the next 2 -3 years ahead…. . Major Impact (Weight 4) Significant Impact (Weight 3) Reasonable Impact (Weight 2) Low Impact (Weight 1) No impact (Weight 0) 16. 13% 10 30. 65% 19 22. 58% 14 16. 13% 10 14. 52% 9 17. 74% 11 33. 87% 21 19. 35% 12 20. 97% 13 8. 06% 5 6. 45% 4 33. 87% 21 24. 19% 15 17. 74% 11 Legislation and regulations Parent Company 28. 81% 17 27. 12% 16 23. 73% 14 13. 56% 8 6. 78% 4 17. 14% 6 31. 43% 11 14. 29% 5 22. 86% 8 Other 50% 2 0% 0 25% 1 Customers/M arket Demand Patterns Processes Staff Total 62 62 62 59 35 4 Average Weighting 2. 18 2. 32 1. 94 2. 58 2. 06 2. 50

…. . mostly due to changes in customer demand patterns and process changes…. .

…. . requiring reduction of waste, emission and use of energy and materials while improving recycling…… Major Impact (Weight 4) 3. 33% 2 Significant Impact (Weight 3) 6. 67% 4 Reasonable Impact (Weight 2) 18. 33% 11 Low Impact (Weight 1) No impact (Weight 0) 40% 24 6. 56% 4 21. 31% 13 29. 51% 18 10% 6 28. 33% 17 Reduction of greenhouse gas emissions 3. 39% 2 Decreasing waste and emissions Recycling of materials Development and adoption of renewable energy sources Reduction of consumption of raw materials Reduction of consumption of electricity and fossil fuels Preventing the loss of biodiversity and restoring ecosystems Total Average Weighting 31. 67% 19 60 1. 10 26. 23% 16 16. 39% 10 61 1. 75 26. 67% 16 20% 12 15% 9 60 1. 98 18. 64% 11 20. 34% 12 23. 73% 14 33. 90% 20 59 1. 34 11. 67% 7 26. 67% 16 30% 18 16. 67% 10 15% 9 60 2. 03 11. 67% 7 3. 33% 2 28. 33% 17 15% 9 21. 67% 13 25% 15 20% 12 13. 33% 8 40% 24 60 2. 00 60 1. 22

…. . impacting jobs at all levels across the organisations…. Managerial Technical Support Elementary Occupation s Major Impact (Weight 4) Significant Impact (Weight 3) Reasonable Low Impact (Weight 1) (Weight 2) 6. 56% 4 26. 23% 16 22. 95% 14 24. 59% 15 16. 67% 10 21. 67% 13 20% 12 6. 67% 4 15% 9 5. 17% 3 18. 97% 11 Total Average Weighting 19. 67% 12 61 1. 75 21. 67% 13 20% 12 60 1. 93 23. 33% 14 31. 67% 19 23. 33% 14 60 1. 50 18. 97% 11 32. 76% 19 24. 14% 14 58 1. 48 ……. . Especially Managerial & Technical jobs… No impact (Weight 0)

…Particularly as Managements need to improve their understanding of Green Economy - especially Legislation…. . Managerial Skills Needed Legislation 15 Awareness/ Understanding 15 Strategic Management of GE 9 Job Specific Green Skills Nu of occurance 5 Environmental Risk 1 0 2 4 6 8 10 12 14 16

…. . and technical teams need to improve Job Specific Skills relating to the Green Economy…. Technical Skills needed Job specific Green Skills 23 Awareness/ Understanding 10 Legislation 6 No of occurance Specific Management of GE 4 Carbon Footprinting 1 Understand Green Skills 1 0 5 10 15 20 25

…. Highlighting a need for Organisation-wide ‘Green’ awareness …. Elementary Skills needed Awareness/ Understanding Job Specific Green Skills No of occurance Basic Education Legislation 0 5 10 15 20 25

…. and requirement for Capacity building and training for Green Economy…. .

…. . leading to some new occupations being created…. 1. 2. 3. 4. Environmental Impact Analyst Sustainability Compliance Officer Resource Efficiency Monitoring officer (Water, Energy, Materials etc) Carbon Footprint Assessor Which…… • May arise as an additional function for existing jobs • Give rise to a new venture opportunity for providing Environmental Services

…so, to benefit from the Green Economy, we need to…. • Improve company / industry wide awareness • Improve fundamental skills of Maths & Science • Develop other enabling skills e. g. Innovation, Leadership. • Develop Partnerships & Co-ordination for skills development Processes • Understand Policy Drivers & Developments in an International Context

…Note the Key Role of Government in Skills Development such as to…. • Coordinate the updating of national qualifications and curricula and finance skills provision. • Devise active labour market measures to cushion the effects of green structural change and to ensure disadvantaged groups have access to the labour market. • Incentivise training provision, or provide incentives for skills development • Enable Career guidance and counselling in a decentralized fashion to meet skill needs • Create A National Low Carbon Economy Skills Forum, would be useful to monitor and direct the National Qualifications Framework to ensure that essential skills for greening the economy are considered • Support further research and data collection

…. . and adapting existing training systems to the needs of the Green Economy… • Colloquia and Collaborative Exchanges • Future technological developments, improved legislation and enforcement. • Incorporate effect of emerging market drivers • Two general approaches : – Including a standard module relevant across a group of occupations – Updating the content of specific initial or continuing training courses by adding new material to augment or replace existing content • Creating new qualifications • Creation of new university departments • Wider and Bigger Study incorporating SA and other SETAs

In conclusion…. Tomorrow belongs to those who prepare themselves today

Thank You Dr Padalkar’s Research Resources Tel: + 27 31 201 7444 Cell: 082 897 7811 Email: apadalkar@researchresources. co. za

BACK-UPS

Specific Skills required to perform present jobs: Specific knowledge areas Basic Green Economy Awareness: • Understanding Concept of Green Economy and its implications • International Trends and how it affects the firms • Fundamental awareness of Global warming process • Understanding of Green Chemistry and • Introduction to concepts of Reduce-Recycle-Re-use • Practical implementation of Energy Efficiency. • Understanding of applicable legislation Advanced Green Economy Implementation Skills: • Green Economy Impact Measurement Skills • Energy Efficiency Audit and Implementation • Reduction in the use of materials • Recycling and Waste disposal processes • Safety and Legislative Compliance • Green Supply Chain Practices including manufacturing processes

Other comments: • “More training and awareness to all industries to make an impact in South Africa. • More stringent government legislation to use environmentally friendly products/raw materials. The more customers who understand the need to buy environmentally friendly products the more opportunity it gives us to manufacture it. ” • “Road shows for companies & factories to raise awareness of the green economy. Partnerships between stakeholders ( DCCI, Industry , Government etc) to support mutual interests. ” • “In-house training is needed to align the company with green economy agenda. ” • “We have not heard of the green economy and thus it’s difficult to forecast training for something that we were unaware of. ”