The transition to a green economy is expected to create plenty of new employment opportunities. Unfortunately, filling them will be far more challenging than most employers think. Accenture’s research on the future of the green economy in the Asia Pacific region shows strong employment growth potential. But the research also identified a significant disconnect between youthful demand for “green” employment and where most green job growth is taking place. The sectors not known for sustainability are driving most green job creation. Training and salary expectations also don’t match the emerging opportunities, since the majority of green jobs will not require advanced qualifications, nor command relatively higher salaries. To understand the green jobs landscape in the region the authors targeted, they identified four pathways to reducing greenhouse gas emissions: transitioning transport, supplying low-carbon electricity, decarbonizing the built environment, and greening agriculture and land use. The results showed that transitioning transport had the greatest jobs potential. By breaking down the jobs created across the four pathways into specific industries, the authors found that up to 76 per cent of the 32.6 million new jobs would be in construction (18.1 million) and manufacturing (6.7 million). Tech-intensive roles requiring a highly trained workforce will undoubtedly be part of the equation. However, relatively better paying jobs will be the minority, accounting for less than 8 per cent of the total jobs potential in the Asia Pacific region.

It's time to address the disconnect between green job growth and the employment expectations of the green generation

Older companies have weathered numerous tumultuous business cycles and other crises and, as a result, have some inherent smarts. Accenture performed research on 577 multinational companies from non-tech sectors. In this group of firms, all established before 2000, it found 69 companies that stood out for their strong growth in the digital age. A closer look revealed that each has developed the confidence to look dispassionately at disruption—even digital disruption. As a result, each has cultivated an immunity to market pressure. These companies invest prudently rather than impulsively follow trends. How can other mature firms turn their age into an advantage? The confidence and prudence displayed by the growing firms in the study stem from two behaviours born of experience. First, these companies keep investing in their core businesses—even when it would be tempting to let them coast. Second, older companies know how to pace themselves. If the time is not right, they do not sprint into new business activities, even if competitors do. Being aware of competition and context is paramount to marketplace success. But trusting your company’s strengths and teasing out the overarching lessons it has learned over the years can make an even bigger difference.

For many companies, peak condition is sustained through digital fitness—an ability to invest in and innovate using digital technologies. However, Accenture research has found that many companies are not actively building their digital muscles, even when they are in a strong financial position. When we examined the financial and digital performance of over 300 global companies, we found one category of business that was surprisingly strong on financial performance, especially profitability, but comparatively weak on digital performance. We call this group Business Leaders. Business Leaders have maintained financial strength thanks to their legacy business but, if not renewed over time, the strong legacy of today can become a challenge tomorrow. Accenture research shows that Business Leaders underperform on four broad company activities: a) digital strategy planning and execution, b) digital production and delivery, c) digital customer experience management, and d) digital corporate culture and operations. As a result, Business Leaders need to: 1) get motivated to excel at serial investments, 2) renew their business model, but not alone, and 3) make cultural disruption a routine. Business Leaders may underestimate the impact that nimbler, more tech-savvy competitors can have on their current financial lead position. To get fit to lead in the future, these companies must focus on investment, business model renewal, and a persistent culture of innovation.

Companies worldwide spent US$1 trillion on digital technology in 2016. Unfortunately, for many businesses, this investment is not corresponding with financial returns. While some companies excel at adopting innovative digital technologies, many are only achieving incremental business improvements. Organizations need to radically rethink their approaches and develop bold digital strategies to harness technologies and unlock new sources of growth. Only 6 per cent of companies that invested in digital managed to translate those investments into sustained financial gains. We identified these as Digital High Performers. To make the leap from Digital Leaders to Digital High Performers, Digital Leaders must master using digital to drive revenue growth and increase investor confidence. Their overemphasis on efficiency and profitability indicates that Digital Leaders might be making trade-offs they cannot afford, putting their growth potential at risk. Four strategies are critical to organizations that want to get the most out of their digital investments: 1) get immersed in new ecosystems; 2) unlock opportunities to commercialize innovative ideas; 3) move beyond purely transactional customer relationships; and 4) embrace cultural and structural shifts. Digital Leaders must continuously assess the effectiveness of their digital investments and pursue overhauls and organizational designs, even if the initial efforts are risky. Commitment to digital alone does not guarantee financial success. New, bold strategies that leverage digital technology as an enabler and a driver of change in a legacy organization are vital for companies that wish to move beyond the verge of high performance. Digital Leaders don’t need greater investment; they need greater follow-through and the courage to lead transformation with tenacity.