In this three-part Leafr guest article, Izzy Vahdati from Brighteye Ventures delves into the sustainability skills gap in Europe. The report maps the landscape, its various voids, key participants, and potential opportunities. We are delighted to contribute to this report in line with our aim to bridge the skills gap through the cultivation of an expert talent pool of sustainability professionals. We leverage our data to strategically enhance their skills. Click here to download the full report.

Drawing from our high-level analysis and engagements with various founders in the sector, we have identified four compelling opportunities for Edtech companies in Europe.

Opportunity 1:New and evolving reporting responsibilities for companies.

New regulations will mandate non-ESG reporting companies to document their performance. Verdantix, a market research firm, found that the CSRD's enforcement would require up to 49,000 firms to report on environmental and social metrics with financial reporting-like rigor. Due to the current skills gap, companies commonly rely on consultancies for this task�an expensive commitment, especially for smaller businesses. Although some reporting software solutions like OneClick LCA includes training elements, this is often an auxiliary offering. We, therefore, see an opportunity in solutions enhancing individual skills in ESG reporting compliance in line with different regulations and standards.

Opportunity 2:Potential for heightened innovation in site-based training solutions.

In this space, less innovative companies with slower growth hold market dominance. We see a potential for more nimble learning operators offering qualifications over a short period. YouSchool, a French company, displaced traditional competitors with more engaging, flexible online opportunities suited for individuals looking to retrain in a new profession. However, fully remote learning may not suffice for some roles, like Solar and Wind engineers. Emerging technologies like VR can help retrain site-based workers in safer environments at a lower cost, and allow employees to test future career paths without large upfront costs.

Opportunity 3: Gen Z's deep concern about sustainability.

There's growing demand for sustainability-inclusive courses at higher education levels and schools facing pressure to uphold higher sustainability standards. In response, Time Higher Education released Impact Rankings that assess universities against the UN's SDGs. We see more opportunities for disruptors in this category, enabling students to gain vital sustainability skills in a more flexible, accessible, and innovative way. We anticipate a continued increase in demand for these skills at higher education levels as sustainability knowledge becomes embedded across organizations and public understanding deepens.

Opportunity 4:Need for more competency tools.

Similar to TestGorilla which uses scientifically validated tests to assess potential employees' suitability for required skills, and Werk which gauges workforce competency on sites, there is a need for solutions to review candidate and employee competency in sustainability roles. This would help ensure the hiring of the right people for a role, monitor performance levels, reduce inefficiencies, and offer customized learning opportunities to employees.

Finally, our warm thanks to Ellasaid Woodhouse from UFI Voctech Trust, Jia Lin Yong from Giant Ventures, Lucy Clarke from Fixed Construction, and Nick Valenzia from Leafr for their insightful contributions.