A high share of “green jobs” are – and will be – in the professional services
sector. New estimates presented here show that about 730,000 workers in
professional, scientific, and technical services activities are in green jobs, as
well as 200,000 workers in the finance and insurance sector. Combined, these
industries currently account for about a fifth of all green jobs on our definition.
• These industries also have a greater share of the workforce in green jobs than
the economy average. The latest ONS data show 27% of professional, scientific,
and technical services workers in green jobs and 19% of financial services
workers, compared with a UK-wide figure of 16%. While the financial services
sector was broadly in line with the economy average share of green jobs in
2009, it is now ahead of the average.
• Net zero finance has the potential to become one of the UK’s most successful
green exports. London is currently rated number one globally for the quality and
depth of its green finance offerings, and low-carbon finance is expected to
grow faster than all other low-carbon sub-sectors of the economy.
• Financial services will be pivotal in providing other sectors of the economy with
the capital needed to support green investments – mobilising private wealth,
including pension wealth, to support these projects. While around £800bn
worth of UK pensions schemes are working aligned with net zero , most pension
schemes (70%), worth £2 trillion, are yet to make net zero commitments and
deploy capital in projects net zero-related – suggesting significant potential
waiting to be untapped through a combination of government policy and
financial services innovation.
• Financial innovations are helping organisations – and countries – deliver on and
commit to net zero. This includes through relatively new sustainability-linked
bonds, where bond issuers face a financial penalty if they fail to meet
sustainability targets. March 2022 saw Chile issue the world's first sovereign
sustainability-linked bond, which is listed on the London Stock Exchange’s
International Securities Market and Sustainable Bond Market.
Financial services and net zero: Seizing
the opportunity
BRIEFING PAPER
May 2022