October 6, 2022

In the financial sector, what ESG jobs are coming this way?

Lots of ink (including mine) has leaked to cover the ESG job market, and there’s no question it’s hot.

One of the most important drivers of ESG growth is the many emerging standards and measurement frameworks for reporting. Disclosure Efficiency – You Call It Narrated by TSC.ai in a new way ESG Playbook As a “more connected and data-hungry” ESG ecosystem, the authors counted more than 2,000 reporting frameworks, requirements, methods and protocols, including more than 1,424 potential ESG performance indicators. them below:

Charts showing various ESG reporting and standard frameworks.

My own research and discussion has revealed a few additional factors driving the demand for talent in this area: the move from voluntary reporting to compulsory reporting. The amount of information the company has to disclose has increased. and the need for information (same as company financial statements) that are strong, verifiable, reliable, and standardized

as a broker I have noticed a huge increase in requests from hiring managers in the financial services sector. This includes asset management, insurance, private equity, and others that require new hires to have the experience and skills to collect, decode, analyze and disclose information to meet stakeholder needs. These include the Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Task Force on Nature-related Financial Disclosures (TNFD), Glasgow Financial Alliance for Net. Zero (GFANZ) and The Corporate Sustainability Reporting Directive (CSRD)

CDP conducted an analysis on my behalf, revealing a remarkable increase in the number of CDP capital market signatories. This increases from about 530 in 2019 to 680 in 2022.

Total assets under management by CDP capital market signatories

meanwhile The number of financial institutions supporting TCFD has more than tripled from 287 in 2018 to 1,069 in 2021.

Companies using the Task Force for climate-related financial disclosure advice

What does this all mean for ESG job seekers and those who are employed in the finance sector? For perspective, I asked several of the leaders who represented the corners of ESG with the following questions:

Given all the changes in the ESG reporting landscape, what skills and/or job titles will be available in your area in 2025 that you don’t currently have?

This is what they told me which is organized by the perspective of the ESG each person represents:

sustainable finance

A new role in ESG and climate change will emerge as companies Expand your reach: “In the coming years, there will be an increasing need for an appropriate regulatory framework. Relevant expertise in data management and operational integration And with a coordinated ESG-focused leadership team, we’ll see new jobs emerge, such as ‘Head of Region 3 ESG’. Expanded access within the supply chain, or ‘Head of Climate Alignment’, to lead efforts for future net zero obligations. Some positions will evolve as ESG is embedded in various business functions such as accounting, compliance, legal and investor relations. ‘Translators and supervisors’ – professionals who can bridge these different verticals and work together to drive change as reporting requirements increase.”

Lissette Jorgensen, COO, Goldman Sachs Sustainable Finance Group

Alternative Asset Management

Developing an “adaptive team” built to learn and develop.: “I’ve built an adaptive team with skills and expertise that evolve with my career. At Apollo, we’ve built a strong talent pool that spans reporting. Engagement, communication, strategy, climate, impact, human capital, information/technology, ESG, nationality, diversity, equality and inclusion. research and law It is difficult to predict the exact location needed. Instead, I will continue to assess resource requirements based on the growing and new regulatory reporting environment in Europe, the United States and around the world.”

Dave Stangis, Partner and Chief Sustainability Officer, Apollo Global Management

ESG Consultant

Moving ESG jobs into operations and value creation roles: “One of the changes I expect to see is a change in where ESG talent is placed in the organization chart. [investor relations]focus on reporting to [limited partners] and an entire portfolio data collection for the ESG Data Convergence Initiative and other frameworks. I expect the next wave of ESG events to be closer to portfolio operations teams. and focus on creating value and improving operations for the company’s ESG efficiency.”

— Ryan Werffeli, COO, Malk Partners

Investment impact

Pushes to improve trust across all sectors: “Future leaders in 2025 will need to produce solutions that can be designed and implemented across all sectors. whether business non-profit organizations and governments. Therefore, the skills of quantitative impact investment analysts High impact portfolio managers and senior impact officers must consist of (1) designing rigorous multi-sector solutions to analyze (2) outcome mapping and 17 global impact accounting. [United Nations Sustainable Development Goals](3) entrepreneurship cooperation and teamwork; and (4) being a member of ‘Network of good people'”

— R. Paul Herman, CEO and Founder of HIP Investor

reporting and information

Depth and Width in Disclosure Requirements: “Sustainable disclosure requires more skill due to more complex disclosure requirements. Asset managers need to add resources to support ESG reporting. Large companies have teams dedicated to reporting. Journalists need a deep understanding of current disclosure standards, including: what will happen Reporting leadership skills includes sharp analytical thinking coupled with insight and problem solving in strategy formulation.”

— Elaine Cohen, Managing Director, Beyond Business Ltd.

Private Equity

Enhancement of Deal Team Skills: “By 2025 we will see significant changes in ESG skills and jobs within private equity. while today We will see an increase in the number of Chief ESG Officer roles over the next few years as ESG becomes a fundamental part. There will be less need for ESG consultants at the center of PE companies, but leading companies will have direct partners or portfolio managers who oversee the ESG principles and how they are implemented. of ESG will become the backbone of all roles in the company. from analysts to managing partners.”

– Amy Silverstein, Partner and Leader, ESG e2p

insurance

The need for expertise at the intersection of sustainability and business: “As insurance companies continue to integrate sustainability and climate education into their business models, We will see more and more roles that require both sustainability and business acumen. Climate scientists who can convert evolving climate data into risks for internal studies and clients. as well as experts at Understand the risks associated with biodiversity And it is also in great demand.”

— Rakhi Kumar, SVP, Sustainability Solutions and Business Integration, Liberty Mutual Insurance

information

Experts and experts who can prepare mandatory disclosures: “With global regulatory developments, companies will need to disclose more ESG data. are already increasing in breadth and depth To verify or certify such information is also expected to increase. Specializations are already taking place in the weather. Collection and management of science and data including carbon and natural accounting society and human capital This will only increase as more financial institutions consider companies in their portfolios.”

Mike Wallace, Senior Vice President, Strategic Marketing Engagement, Persefoni

Three predictions for ESG jobs in the financial services sector

What does all this mean when it comes to trends in ESG capabilities in the financial sector? I predict three trends:

  1. Continued growth: Despite the economic slowdown in many areas But workloads will continue to grow in line with the growth of standards used to assess ESG progress.
  2. The ESG role will be closer to the CFO: As ESG disclosures become more standardized As a result, this information is more integrated into the CFO’s in-office financial reporting and risk disclosure. I anticipate that more CSOs will report to CFOs, as their future jobs will be highly aligned. climb
  3. Expert “E” will have the steepest growth curve: The urgency of climate change is undeniable. And for many companies net zero by 2050 (or even 2030) is imminent. Work needs to start yesterday. In addition, young people adapting to climate change especially will look to work with companies that take this seriously. This will increase the demand for these jobs.

On Sept. 14, I’m leading the discussion at Private Equity International Responsible Investment Forum in San Francisco, especially on how to win the war with the talent. We’ll delve deeper into these trends. And talk about what hiring managers can do to attract and retain ESG professionals. Join us or get in touch to share your views on the ESG job explosion in the financial sector.

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