Emerging trends in sustainable management: developing managers' skills for ESG challenges

Abstract

The ESG culture challenges the nature of the organizational managers needed to lead in this new paradigm. In this scenario, it is clear that future professionals must be aware of their responsibilities to contemporary environmental challenges. They must acquire specific competencies and skills that enable them to meet the demands of the new global agenda. This article delves into this issue by outlining four crucial skills categories managers need—hard, soft, green, and power skills. While hard skills represent technical and specialized knowledge, including understanding climate change, managing natural resources, and implementing sustainable technologies, soft skills encompass interpersonal skills, such as effective communication, empathy, and leadership, central to engaging and inspiring teams to adopt more sustainable practices. Green skills are specific skills related to sustainability, such as the expertise to assess the environmental impact of business decisions and develop strategies to reduce that impact. In turn, power skills empower managers to influence and promote change within organizations, which includes the ability to make ethical decisions and advocate for responsible business practices. The results of this study, obtained through qualitative analysis and research with recruiters and managers, underscore the importance of developing these skills, which highlights the need for collaboration among various stakeholders—including educational institutions and governments—to ensure that professional training aligns with the challenges of the green economy and the ESG culture, preparing professionals who are aware of their responsibilities and able to face contemporary environmental challenges.