Sustainability Hiring in India: Trends, Challenges, and Talent Gaps in 2026

Sustainability hiring in India is experiencing unprecedented growth, creating both opportunities and challenges for organizations across sectors. With companies increasingly integrating environmental, social, and governance (ESG) principles into their core business strategies, the demand for sustainability professionals has skyrocketed.

Despite this surge, a significant gap exists between available positions and qualified candidates. Green jobs in India are multiplying faster than the talent pool can develop, particularly for specialized corporate sustainability roles.

Consequently, organizations face mounting pressure to attract experienced professionals while developing internal capabilities. Environmental recruitment trends indicate that companies must adopt innovative approaches to address these ESG talent gaps, especially as sustainability careers become more diversified and technically complex.

This article examines the evolving landscape of sustainability recruitment in India through 2026, highlighting industry-specific growth areas, emerging skill requirements, and strategic solutions to overcome the widening talent shortage.

Sustainability Hiring Growth in India

India’s green economy is accelerating at an extraordinary pace, reshaping the employment landscape across the nation.

According to recent research, India’s green economy is projected to reach a staggering value of INR 84.38 trillion by 2030, and further expand to INR 1265.71 trillion by 2070. This economic transformation is driving substantial job creation in sustainability sectors.

The scale of employment growth is remarkable- India is on track to generate approximately 7.29 million green jobs by FY 2027-28 and an impressive 35 million green jobs by 2047. Even more ambitious projections suggest that with the right investments and skill development strategies, India could create up to 48 million green jobs by 2047.

Geographic Distribution of Green Opportunities

Initially concentrated in metropolitan hubs like Mumbai, Bengaluru, and Delhi, green job creation is now expanding significantly into smaller urban centers. Cities such as Jaipur, Indore, Visakhapatnam, Coimbatore, Bhubaneswar, Chandigarh, and Ahmedabad are emerging as important sustainability employment hubs. In fact, Tier II and Tier III cities are expected to generate 35-40% of the projected 7.29 million green jobs by FY28.

The demand for sustainability talent is outpacing general hiring trends we are witnessing in early 2026. LinkedIn data reveals that the Hiring Rate for green workers is 59.7% higher than for the overall workforce. Additionally, green talent concentration increased by 4.3% in 2025, with India showing one of the strongest year-on-year growth rates at 6.2%.

Sector-wise job creation

Green employment is expanding across multiple sectors:

• Renewable Energy: Major contributor to the 16.7 million projected energy transition jobs by 2047
• Electric Vehicles: Expected to create the largest number of green jobs within the energy transition sector
• Bio-economy & Nature-based Solutions: Will contribute almost half of the 48 million potential green jobs
• Circular Economy: Projected to employ 8.4 million people by 2047, with solid waste management representing the majority

Most notable is that 73% of Indian professionals are already working in roles connected to energy transition or climate adaptation – far above the global average of 42%.

In the corporate world, ESG-related job postings have grown by 70% between 2020 and 2023. Moreover, the ESG job market in India has seen an astonishing increase of over 200-223% from 2019 to 2023, with corporate adoption showing a year-on-year increase of approximately 81% in sustainability role postings.

As regulatory frameworks strengthen and Kerala becomes the first state to adopt a formal ESG policy, the sustainability hiring trajectory in India appears set to continue its upward trend through 2026 and beyond.

Industries Expanding Sustainability Hiring

Many industries are expanding sustainability hiring. The renewable energy sector stands at the forefront of sustainability hiring in India, creating unprecedented employment opportunities nationwide.

Currently, the sector employs over 1.02 million people, with projections indicating substantial growth through 2026. Hydropower leads as the largest employer, providing approximately 453,000 jobs and accounting for 20% of global employment in this field. The solar PV sector follows closely, employing about 318,600 people across both on-grid and off-grid systems.

Wind power has similarly established itself as a significant green employer. With India ranking fourth globally for cumulative installed wind power capacity at 44.7 GW, this sector provides employment to approximately 52,200 professionals. Notably, around 40% of these positions are in operations and maintenance, while 35% focus on construction and installation.

Electric vehicle (EV) manufacturing represents another rapidly expanding field for sustainability careers. India aims to deploy 102 million EVs on roads by 2030, potentially creating around 10 million jobs. The EV sector has already witnessed a 30% increase in hiring over the past two years. Job creation spans designing, manufacturing, testing, R&D, charging infrastructure, battery technology, sales, and management roles.

Beyond energy and transportation, green construction and waste management sectors are experiencing substantial growth. The waste management sector is projected to employ 8.4 million people by 2047, with solid waste management representing the majority (7.7 million jobs). This expansion stems from increasing demand for recycling, waste-to-energy initiatives, and environmental engineering expertise.

For this reason, traditional corporate sectors are simultaneously integrating sustainability functions. A LinkedIn analysis reveals ESG-related job postings grew by 70% between 2020 and 2023. These roles include:

• Sustainability analysts and ESG reporting officers
• Carbon footprint analysts and decarbonization experts
• Environmental scientists and compliance managers
• Green auditors and circular economy specialists

The geographic distribution of these opportunities has expanded beyond metropolitan centers. Together with Mumbai, Bengaluru, and Delhi, smaller cities like Jaipur, Indore, and Visakhapatnam are emerging as important sustainability employment hubs.

As companies face increasing pressure to decarbonize systems, adapt to climate risks, and embrace circularity, they specifically seek professionals who combine technical expertise with systems thinking.

This trend is further amplified by India’s commitment to net-zero emissions by 2070, which will undoubtedly create numerous additional climate sector jobs as the country works toward this ambitious target.

Emerging ESG Hiring Mandates

Corporate boardrooms across India are rapidly redefining their ESG priorities, triggering a fundamental shift in hiring patterns.

The ESG-related job market has witnessed an astonishing increase of over 200-223% from 2019 to 2023. This surge reflects a profound transformation in how organizations view sustainability expertise- no longer as optional but as business-critical.

ESG departments are expanding at unprecedented rates, with companies actively recruiting analysts, sustainability managers, and environmental consultants.

In response to these developments, ESG Risk Managers have emerged as key players within organizations spanning various industries- from large conglomerates and multinational corporations to fast-growing startups.

The demand for these professionals extends beyond India’s private sector to consulting firms, non-profit organizations, and government agencies focused on sustainable development. Currently, 20% of workers in India are employed in green occupations, with projections indicating this percentage will double to 40% by 2030.

Several factors are driving these emerging mandates.

Firstly, tightening regulations compel companies to maintain compliance and mitigate financial liabilities.

Secondly, institutional investors increasingly steer capital toward businesses with robust ESG practices.

Thirdly, climate change threats necessitate proactive adaptation measures requiring strategic ESG risk analysis.

Major corporations are leading this hiring surge:

• Amazon and Google are investing in renewable energy with multiple sustainability openings
• Patagonia offers positions focused on environmental and social responsibility
• Unilever has job openings centered on sustainability and circular economy initiatives
• Goldman Sachs plans to invest INR 12657.07 billion in clean energy by 2025

The technical nature of ESG work is also evolving. Data analytics roles are reshaping how organizations track performance, creating high demand for professionals who excel at performance analytics.

Furthermore, financial institutions now integrate ESG data into investment decisions, with the ESG market value projected to reach INR 6750.44 trillion by 2030.

Cross-functional skills have become essential, as today’s sustainability professionals must understand finance, risk management, and operations rather than focusing solely on compliance. Meanwhile, millennials and Gen Z are reshaping employer expectations- over 70% of Gen Z job seekers prioritize purpose over paycheck.

Hence, organizations must embed ESG values into their employer value propositions to attract top talent. Those neglecting ESG-driven recruitment risk being overlooked by skilled candidates who value corporate accountability, climate responsibility, and social justice.

Why is the Green Talent Gap Widening?

The stark reality of India’s green economy is that demand for sustainability talent significantly outpaces supply.

Recent data reveals that green talent demand is growing at an annual rate of 8% while supply lags at just 6%. This gap is rapidly expanding- the five-year annualized growth rate between 2018-2023 confirms demand for green talent outpacing supply by almost two times, with job postings growing by 9.2% while green talent grew by only 5.4%.

India faces this widening deficit due to several interconnected factors. Primarily, the education system has not evolved to meet modern sustainability needs.

Engineering curriculum haven’t substantially changed in two decades, even as industry has undergone four to five generational shifts in technology. Power engineering education still focuses on outdated technologies like steam engines, despite their diminishing relevance.

Beyond outdated curricula, awareness remains a critical barrier. Only 35% of urban youth can identify specific green job roles or know how to access relevant training. The Allianz Climate Literacy Survey 2023 found merely 7.9% of respondents across eight countries, including India, demonstrated high climate literacy.

The skills gap extends beyond technical knowledge. Industry requires professionals who understand financial literacy, accounting principles, and business fundamentals – competencies often missing from traditional education. Yet, introducing these skills faces resistance within existing time constraints.

Currently, less than 10% of Indian youth receive formal or informal training, resulting in concerning employment trends:

• Nearly half of India’s graduates are deemed unemployable for modern roles
• The Graduate Skill Index shows employability declining to 42.6% in 2024
• People with formal vocational training comprise just 4% of the population

This mismatch creates economic inefficiencies throughout the sustainability sector. When Indian renewable companies compare revenue per employee with global peers, they typically find themselves in the 20th to 30th percentile.

Inclusion gaps further complicate the scenario. Women form only 11% of the renewable energy workforce. Rural communities face geographical and infrastructural barriers to training programs, while informal workers lack structured pathways.

Nevertheless, LinkedIn data indicates green talent is 46.6% more likely to secure jobs above the economy-wide hiring rate, underscoring the economic opportunity for those who can acquire relevant skills.

Ultimately, the bottleneck isn’t capital – it’s human resources. As one industry leader aptly noted: “India isn’t facing an unemployment problem in renewable energy. We’re facing an under-skilling challenge. The difference is crucial”.

Strategic Sustainability Hiring Solutions

As organizations grapple with the widening green talent gap, innovative recruitment approaches are emerging across India’s sustainability sector.

Building long-term sustainability capability requires more than transactional recruitment. Organizations increasingly rely on structured Recruitment Process Outsourcing in India models to scale green hiring with consistency, governance, and measurable outcomes across sectors.

Forward-thinking companies are implementing comprehensive strategies that address both immediate hiring needs and long-term talent development.

Partnerships between industry and academia represent a cornerstone solution. The National Skill Development Corporation (NSDC) has collaborated with WRI India to map green skill gaps, implement reskilling programs, and strengthen India’s green skilling ecosystem.

This partnership focuses on boosting green skills across manufacturing, service, and agriculture sectors while promoting sustainable development through market-relevant training.

Regarding workforce readiness and development, companies are increasingly looking inward. Analysis shows that 25% to 50% of roles across sectors will need to evolve to meet sustainability priorities.

Most of these are existing positions- not new “green” jobs- that require upskilling in core functions like operations, procurement, and finance. BCG research indicates that 57% of workers are open to reskilling, with even higher willingness (63%) among younger employees.

Commonly, organizations are exploring specialized recruitment pathways:

• Embedding sustainability in job descriptions by identifying key environmental competencies for each role
• Transitioning to digital recruitment platforms that eliminate paper documentation
• Promoting virtual interviews to reduce carbon footprints during hiring processes
• Leveraging technology through social media to showcase sustainability initiatives

Addressing gender diversity remains crucial in building a robust talent pipeline. By improving women’s representation in India’s green workforce, organizations can bridge skill gaps while ensuring the energy transition is just and inclusive.

The government has focused on deploying gender-specific strategies through initiatives like the Women’s Empowerment Scheme and Decentralized Renewable Energy Policy.

In essence, organizations must forecast where sustainability will reshape work. Function-level heatmaps informed by sustainability roadmaps help identify which roles will be most affected and how. This visibility allows companies to focus investments where they matter most- in operations, which accounts for nearly 70% of sustainability-linked roles in some sectors.

Ultimately, addressing India’s sustainability talent challenges requires multi-stakeholder collaboration. The Skill Council for Green Jobs, a partnership between government and industry stakeholders, has trained thousands of professionals in solar energy, addressing both employment and energy access challenges.

When to Partner for ESG Hiring

Many organizations reach a critical point in their sustainability journey where external expertise becomes essential for ESG talent acquisition.

The complexity of sustainability roles- spanning energy consultants, ESG specialists, and over a hundred specialized positions across industries often requires specialized recruitment knowledge beyond internal HR capabilities.

External partnerships become particularly valuable when organizations face rapid expansion of ESG team departments, incorporating analysts, sustainability managers, and environmental consultants. Companies should consider specialized sustainability recruitment when they encounter these specific challenges:

Skill assessment complexity: Finding candidates whose expertise aligns with sustainability goals requires specialized assessment tools. Recruitment agencies have evolved skill assessments specifically matched to sustainability domains and customized behavioral assessments to identify candidates who will drive organizational sustainability objectives.

Workforce alignment gaps: Organizations striving to increase their sustainability footprint or just embarking on the journey to sustainability often need assistance creating a workforce aligned with their environmental goals. This alignment becomes increasingly important as producers, investors, and regulators demand more comprehensive ESG metrics reporting.

Implementation roadblocks: Businesses encounter several obstacles to scaling sustainable careers, including skill gaps, limited training options, and awareness issues. Specialized recruitment partners bridge these gaps through established talent networks and industry-specific knowledge.

Effective sustainability recruitment solutions provide comprehensive support by helping organizations:

• Set and meet sustainability goals
• Create an aligned workforce
• Determine appropriate stakeholders for sustainability management
• Reduce turnover and improve retention
• Enhance diversity and inclusion initiatives
• Monitor sustainability progress
• Document results for compliance requirements

Essentially, recruitment partners like Taggd serve as connectors between qualified candidate networks and organizations pursuing sustainable futures. They help identify leaders who can drive investments in sustainability with forward-thinking vision.

The sustainability talent landscape presents unique challenges- including unstable policies, insufficient incentives, and infrastructure limitations. Given these complexities, partnerships become most valuable when organizations need to rapidly scale their sustainability capabilities or require specialized expertise beyond their current recruitment resources.

Wrapping Up

The sustainability hiring landscape in India presents both tremendous opportunities and significant challenges through 2026 and beyond.

Green jobs continue to multiply at an extraordinary rate, with projections indicating millions of new positions across renewable energy, electric vehicles, waste management, and corporate sustainability functions.

Additionally, this growth extends geographically, reaching smaller urban centers rather than remaining concentrated in metropolitan areas.

Nevertheless, the widening talent gap remains a critical concern. Demand for sustainability professionals outpaces supply by nearly two times, creating bottlenecks for organizations seeking qualified candidates.

This disparity stems largely from outdated educational curricula, limited awareness about green careers, and insufficient training programs nationwide.

Organizations must therefore adopt multi-faceted approaches to address these challenges effectively. Partnerships between industry and academia offer promising pathways for developing specialized talent pools.

Likewise, internal workforce development through targeted upskilling helps transform existing roles to meet evolving sustainability requirements.

Companies that implement comprehensive strategies- including specialized recruitment pathways and diversity initiatives- position themselves advantageously in this competitive landscape.

Specialized recruitment partnerships become particularly valuable when organizations face complex skill assessment challenges or need rapid scaling of sustainability capabilities. These external experts connect qualified candidates with forward-thinking companies while providing comprehensive support for sustainability goals.

The future undoubtedly belongs to organizations that recognize sustainability talent acquisition as a strategic priority rather than merely a compliance requirement. Those who act decisively to bridge skill gaps through innovative hiring practices, collaborative partnerships, and long-term talent development will certainly thrive as India’s green economy expands.

The journey toward sustainability requires not just capital investment but equally important human resource development- making strategic workforce planning essential for success in this transformative era.

FAQs

Strategic workforce planning is critical to closing the green talent gap and building scalable sustainability capability.

Taggd partners with CHROs to design and execute sustainability hiring strategies- from workforce mapping and JD architecture to green talent pipeline development across sectors.

Reach out to explore how we can support your ESG talent agenda.