workplace research centre going with the grain? skills and sustainable business development key...

Workplace Research Centre

Going with the grain?Skills and Sustainable Business

Development

Key finding and policy directions arising for a project commissioned by the NSW Board of Vocational Education & Training by

Chris Briggs, Mark Cole, Justine Evesson, Kate Gleeson, John Buchanan

(Workplace Research Centre, University of Sydney)Grahame Larcombe, (Strategic Economics)

Hugh Saddler, (Energy Strategies)

ASHRR Annual Conference, August 2007


Overview1. Questions and method2. Why change is necessary

the reality of global warming3. NSW’s Greenhouse policy challenge:

Overcoming the impasse at national level4. Climate change, innovation and skills

Sustainability as a unifying theme?5. The future of work and skill

Different cross currents6. Policy implications and recommendations7. Conclusion

Building on the sustainability- innovation – skill nexus


1. Aim, objective and methodAim: understand relationships between skill, energy, innovation & industry policy

Objective: generate skills policy options in context of this policy mix

Guiding concepts: Climate change => sustainable development Industry led-skills policy

How sustainability can make skills agencies more relevant How State government policy can drive demand

Insight from literature and the field Greenhouse gas emission and energy policy frameworks(Ch 2) Drivers of change (ch 3), especially leading Australian Corporates (Ch4) Empirical studies of the connections:

Renewable energy domain (Ch 5) The built environment (Ch 6) Place-based networks (Ch 7)

The nexus between climate change, innovation and skill (Ch 8)

Policy implications and recommendations (Ch 9)


2. Why change is necessary: -the reality of global warmingFour drivers behind structural adjustment to low-carbon economy

1. Deepening climate change, economic costs and insurance sector increasingly aware of the risk

2. New regulatory frameworks for carbon pricing

3. Sustainability of business models increasingly integrated into risk assessments/investment calculation of capital markets Especially institutional investors

4. Emerging international framework for investment and business incorporates sustainability Mechanisms: regulatory instruments, global supply chains and product

assessment


3. NSW’s Greenhouse policy challenge: impasse at national level Is global warming a problem?

Different options to address problem: Big Science: eg clean coal, nuclear power

Problem: solution costly and technologies yet to be proven Stop problem at source: price appropriately

Problem: Commonwealth failure to do this=> allows perverse market incentives to continue

State Govt no choice but to rely on limited policy initiatives In some domains State Govt can directly shape demand

Eg solar hot water heaters Importance of NSW Greenhouse Plan (Nov 2005): key reference

point for whole of government approach to the problem

But how will necessary changes be achieved? Lessons from recent literature on innovation


4. Climate change, innovation + skills: sustainability as unifier? Innovation:

Is key to competitiveness Involves new creations of economic significance, material + intangible

Two models Traditional (linear) – conceptualisation => R+D =>proto-types=>

commercial application =>adoption and diffusion=> scale economies Learning/knowledge economy – continuous improvement involving users,

suppliers, researchers and producers interacting (eg.West) key: learning by doing and learning by using – feedback throughout networks

of production/service provision vital to improvements

Link to sustainability: firms, households and individuals need to continually find ways of saving energy Example: new residential communities – requires developers, builders and

trades/production workers to find solutions at design, planning, procurement, construction, installation and maintenance stages. In addition, consumers need to know what to request and how to use new arrangements


5. The future of work and skill

Different cross currents in the way jobs and new demands for skill are being defined in light of the above trends

(a) Training for Green Jobs – the case of renewable energy

(b) The Greening of Old Jobs - the case of the Built Environment

(c) New Skill Formation Arrangements - the role of place based networks


(a) Training for green jobs – (or diffusing sustainability across the life cycle?)

Projections of renewables as energy source in 2050 if 60% target met:20% of Australia’s energy supply

Already extreme shortages of: solar water installers, site designers for wind turbines

Problems in providing skills: ‘lumpy’, stop-start demand due to energy and industry policy Developing labour in thin markets One renewable energy training centre (learn from inter-state)

- Address different market segments- Significant on-line as well as face-to-face elements- Target Asia-pacific market as well as Australian market

BUT - Green jobs only one, relatively small source of future training demand (e.g. wind power directly employs less than 1,000)


(b) The Greening of Old Jobs: the Built Environment

Why the built environment is so important NSW State level policy is extensive and important for sustainability Project findings

NSW State Govt policy to date has been powerful agent for innovation New training capacity needed for emergence of knowledge workers in

unexpected places: Facilities managers and associated personnel Heating, ventilation and air-conditioning (HVAC) engineers and operators

Some occupations need significant up-skilling Eg plumbers – training limited and usually not provided by TAFE’

Some skill shortages are limiting energy policy options Eg skilled installers of solar hot water

key issue for medium to long term in this domain: ‘design/project management led’ approach vs ‘general workforce upskilling’ in sustainability cognition & capabilities


(c) The role of place based networks Local ecologies and need for variations on standardised systems is

driving development of more place based networks of learning

Take at least four different forms: Lead organisation and supply chain model: e.g. Toyota, Landcom Brokered, highly focused firm to firm learning network: 3CBDs,Smithfield-

Wetherill Park Clean Production Partnership Multi-sectoral region-wide learning network: e.g. Sustainable Newcastle Brokered, regional integrated sector learning model: e.g. Liverpool

Industry Network Construction (LINC).

Challenges for policy: How can formal system link better with these networks? Who should drive this? Can public policy nurture and improve operation of such networks?


(d) Implications for TAFE Few positive achievements reported by wide range of informants

Often where achievements established they were subsequently undermined by funding model/arrangements

One very promising lead on where TAFE could go is provided in a comprehensive, unpublished in-house paper on sustainability and the built environment (see next slide)

Key leads from the research on new directions for TAFE Move beyond ‘school on hill’ model to becoming better embedded in new

learning networks Investigate establishing a Sustainability Design Centre Investigate promoting Ecological Sustainable Design and Construction

(ESDC) principles throughout all course offerings associated with B+C A ‘Greening of TAFE’ campaign


How TAFE NSW would assist in the development and diffusion of Ecologically Sustainable Design and Construction (ESDC) practices: A Model derived from Moore (2004)

Champions at senior management level drive the process. They commit to and resource networks of support within and beyond TAFE NSW to achieve success

Standing committee chaired by General Manager TAFE Business comprising relevant Managers in Institutes and Curriculum Centres –

This Committee builds and supports networks within and beyond TAFE

Review Training Package Limitations

Improve flows of knowledge from outside expertise (eg CRC)

Build cross sectoral links in education (school, HE and RTOs)

Promote joint R&D and articulation opportunities

1. Capacity to meet ‘new market’ opportunities – primarily determined by State Government regulation and policy

2. PD and Recruitment – staff with technical expertise in ESDC capable of achieving change.

3. ESDC paradigm for all construction/property services and related curriculum


6. Policy implications and recommendations(a) Three threshold questions

1. Energy policy: is there a climate change problem that requires a thoroughgoing policy response?

2. Industry policy: how will the innovation necessary to achieve change emerge?

3. Skills policy issue: how will the skills necessary for more sustainable practices be developed and deployed?

=> focus on training provisions vs nurturing of healthy skill ecosystems that underpin sustainable economic development

SKILLS FOR SUSTAINABLE BUSINESS DEVELOPMENT:

Threshold issues and their implications for education and training policy

Is there recognition that climate change is a problem thatrequires a policy response?

ThresholdEnergy PolicyIssue

No: Leave it to nature and the market to sort out

Yes: Policy changes neededto induce changed practices to limit disruptions later on

ThresholdInnovation PolicyIssue

Threshold skillspolicy issue

Implications for education trainingand skills policy

1.

2.

3.

4. Ad hoc opportunities for new skill formation offerings will arise sporadically

How will the innovationnecessary to achievechanges emerge?

2.

Big Science/Design led/Professions led

Broader diffusion of sustainabilityunderstandings and skills will requireinitiatives for:•cognition for sustainability•greening of established jobs•support for new categories of work

How will the skills necessary for more sustainable practices be developed and deployed?•Approaches will vary by domain and within domains by placeExample: Built Environment - Role of Domain MOU, govt/led if necessary - Role of Broker/Intermediary - Role of TAFE

3.

Education & Trainingneeded for professionals& para professionals,especially researchers andproject managers

1.

Healthy Skill Eco-systemsthat nurture sustainablebusiness development


6. Policy implications and recommendations

(b) Recommendations

1. Energy policy: benchmarking government agencies sustainability practices

2. Industry policy: clarifying roles and increasing the number of innovation agents

3. Skills policy: upgrading both training practices and skill ecosystems

4. The policy mix: planning and integrating initiatives

5. Institutional capacity: nurturing a new network of skill and business development intermediaries.


7. ConclusionOur findings highlight:

The necessity for change That the issues of sustainability, innovation and skills are

intimately connected

Our policies recommendation ‘go with the grain’ and propose that these connections be recognised and consolidated

Not just for the environment Also important of decent jobs and industry renewal.

workplace research centre going with the grain? skills and sustainable business development key...

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