The GX Skill Standard: Japan’s attempt at defining sustainability skills

With sustainability becoming a critical focus for businesses worldwide, Japan is stepping up to address the demand for green transformation (GX) skills. The GX Skill Standard, introduced in May 2024 by a dedicated working group of the GX League, aims to bridge the skills gap by defining essential knowledge and specialized roles in the field.

The Background behind the GX Skill Standard

A 2023 survey by the Japanese job board Recruit showed that, compared to 2016, the number of job offers related to sustainability was almost 6 times higher in 2022, whereas the number of job seekers was only 3 times higher. More than a simple lack of job seekers, companies have trouble finding suitable employees for their needs due to a lack of a clear definition of what “sustainability skills” should be.

At the same time, the Japanese government wants to dynamize the job market by promoting employee reskilling as well as promoting job-type employment (where employees have defined missions and salary is determined through employee performance) over membership-type employment (where employees regularly rotate departments and salary is determined by seniority).

With this context in mind, the GX (GX = green transformation) Human Resource Market Creation Working Group has been created in 2023, gathering members of the GX League with the aim of helping create a stable sustainability-related human resource market. Led by corporate training provider SkillUpNeXt, this working group gathers 14 companies as of May 2024.

The GX Skill Standard in detail

Inspired by the already existing “Digital Skill Standard” for IT skills, and following 4 meetings of the working group between November 2023 and February 2024, the first version of the GX Skill Standard has been released in May 2024. It consists of two components:

  1. GX Literacy Standard (GXSS)

Knowledge required of all people involved in GX. The target is not only management, but also employees involved in sales, R&D, planning, as well as consumers. By standardizing the required knowledge, all people can have a common understanding of what “GX” is. The working group defines knowledge as the first step that organizations need to undertake in their green transformation to make organizational change more effective.
The working group has defined 4 areas of learning, divided in smaller components with recommended concepts.

2. GX Promotion Skills Standard (GXSS-P)

Specialized knowledge required to promote GX. By standardising these skills, it is envisioned that it will be possible to increase reskilling and career change options for individuals, as well as developing enough human resources to answer the growing demand from companies. GXSS-P defines 4 types of human resources to promote GX:

  • GX Analysts: personnel responsible for the process of calculation and analysis. They can set objectives, design policies and carry out analysis.
  • GX Strategists: personnel responsible for the process of analysis and planning. They can analyze situational information and develop plans based on both environmental and economic indicators.
  • GX Inventors: personnel responsible for the process of development. They can develop business and technologies based on both environmental and economic indicators.
  • GX Communicators: personnel responsible for the process of promotion. Through dialogue and negotiation with stakeholders, they can promote the realization of their company’s plans.

So far only the GX Analyst and GX Strategist profiles have been defined, with the GX Inventor and Communicator to be defined in subsequent versions of the GX Promotion Skills Standard.

It is to note that each profile is divided into 4 levels of expertise. Here is the general scale for each level, along with the example of the GX Analyst:

General GX Analyst
Level 4Leads the identification, establishment, resolution and implementation of their own GX promotion issues independently as a professionalSets objectives for their own GHG calculations, sources the necessary resources and leads the calculations
Level 3Able to lead tasks that are limited in scope (e.g. work area, department, etc.) in GX promotion. Possesses the necessary applied knowledge and skills to become a professional.Can lead tasks that are limited inscope (example: Can lead Scope 1,2 calculations)
Level 2Under the supervision of a Level 3 or 4 employee, takes charge of relevant tasks as required. Possesses the basic knowledge and skills required to become a professional.Under the supervision of a Level 3 or 4 employee, takes charge of relevant tasks as required. (example: calculating Scope 1,2,3 emissions based on secondary data)
Level 1Understands the importance of GX and has basic knowledge (GX Literacy Standards level)Understands the importance of GX and has basic knowledge (GX Literacy Standards level)

As the GX Skills Standard are recent, there are not yet any certification schemes in place to officially certify employees have a certain level of knowledge. However, some synergies can be made with the “Advisor for Decarbonization” (Japanese only) certification scheme launched by the Ministry of Environment in 2023, which combines some aspects of the GX Analyst and Strategist profiles.

Introduction of similar initatives in the EU and the US

  • The EU Green Deal and Pact for Skills

The EU Green Deal Policy is a comprehensive policy package aiming to reduce greenhouse gas emissions in the European Union (EU) to virtually zero by 2050. Several policies and declarations are encompassed within this package, including the Climate Pact, which contains a number of requirements for the development of GX human resources. Specifically, it targets the creation of GX jobs, support for reskilling, and helps citizens acquire GX skills through Pact for Skills, a European reskilling platform. Pact for Skills was launched in November 2020 and allows users to register on its website to access a networking platform and a range of skill-related webinars, etc. It is not limited to GX skills, but offers a wide variety of reskilling opportunities. Like the GX Skills Standard, it aims to eliminate the skills mismatch in the labour market, ultimately leading to more efficient skills development across the industry.

  • The American Climate Corps and Career Skills Training Program

In the US, although there is no comprehensive program like the EU Pact for Skills, there are several initiatives that support GX skill development. The American Climate Corps, operated by the White House and federal agencies, is an initiative launched in September 2023 towards young Americans. They can apply to fixed-term opportunities and receive support from the government (salary, insurance, housing), all while becoming experts on climate change issues through on-the-job experience, leading them to finding high-quality and good paying clean energy and climate resilience jobs. The program aims at mobilizing more than 20,000 people.
The Career Skills Training Programme was developed by the US Department of Energy (DOE) to promote the spread of clean energy and increase energy efficiency, with an initial call for applications in September 2023 and an investment of USD 10 million to provide lectures on energy efficiency and provide on-the-job training. As well as providing learning opportunities, the project also provides support on obtaining certificates common to the clean energy industry. The programme is very unique in that it encourages learning not only through lectures but also through hands-on experience, and in that it is promoted in a way that also involves non-profit organisations.

Looking at these initatives, we can see that, although the sustainability skills to be acquired by employees are not clearly defined, the US and Europe have systems in place where employees can independently develop their skills and even receive money to do so. Japan does not yet provide monetary support to companies or individuals to acquire GX skills. It seems like a natural next step to further incite the creation of GX human resources.

Conclusion

The introduction of the GX Skill Standards in Japan marks a significant step towards addressing the growing demand for sustainability-related skills in the job market. By establishing clear definitions and standards for GX literacy and promotion skills, the GX Human Resource Market Creation Working Group aims to create a stable and efficient market for sustainability professionals.
The first version of the GX Skill Standard has been released this year, but many elements have still to be developed. In the future version of the document, the working group aims to define the remaining GX Inventor and GX Communicator profile, as well as defining a professional level of literacy standards.

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