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

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 Definitions and Key Concepts

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 sub- sectors and size from the Universe Pilot interviews followed by quantitative study Research Methodology

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 Limitations of the Study

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

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. Opportunities Arising

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 Literature Review Multi-disciplinarian Approach Required

Key Findings

Legislation & Regulation have played an important role Major Impact (Weight 4) Significa nt Impact (Weight 3) Reasonable Impact (Weight 2) Low Impact (Weight 1) No impact (Weight 0) Total Average Weighting Customers/Market Demand Patterns 6.45% % % % % Processes 11.29% % % % % Staff 3.28% % % % % Legislation and regulations 16.67% % % 14 20% % Parent Company 10.81% % % % % Other40% 2 20% 1 0% 0 0% 0 40%

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

Major Impact (Weight 4) Significant Impact (Weight 3) Reasonable Impact (Weight 2) Low Impact (Weight 1) No impact (Weight 0) Total Average Weighting Customers/M arket Demand Patterns 16.13% % % % % Processes 17.74% % % % % Staff 6.45% % % % % Legislation and regulations 28.81% % % % % Parent Company 17.14% % % % % Other50% 2 0% 0 25% 1 0% 0 25% …..Which is expected to increase in the next 2-3 years ahead…..

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

Major Impact (Weight 4) Significant Impact (Weight 3) Reasonable Impact (Weight 2) Low Impact (Weight 1) No impact (Weight 0) Total Average Weighting Development and adoption of renewable energy sources 3.33% % % 11 40% % Reduction of consumption of raw materials 6.56% % % % % Reduction of consumption of electricity and fossil fuels 10% % % 16 20% 12 15% Reduction of greenhouse gas emissions 3.39% % % % % Decreasing waste and emissions 11.67% % 16 30% % 10 15% Recycling of materials 11.67% % % 13 25% % Preventing the loss of biodiversity and restoring ecosystems 3.33% 2 15% % 13 20% 12 40% …..requiring reduction of waste, emission and use of energy and materials while improving recycling……

……..Especially Managerial & Technical jobs… Major Impact (Weight 4) Significant Impact (Weight 3) Reasonable Impact (Weight 2) Low Impact (Weight 1) No impact (Weight 0) Total Average Weighting Managerial 6.56% % % % % Technical 16.67% % 13 20% % 13 20% Support 6.67% 4 15% % % % Elementary Occupation s 5.17% % % % % …..impacting jobs at all levels across the organisations….

…Particularly as Managements need to improve their understanding of Green Economy - especially Legislation…..

…..and technical teams need to improve Job Specific Skills relating to the Green Economy….

…. Highlighting a need for Organisation-wide ‘Green’ awareness ….

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

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

…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: Cell:

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.”