There are growing opportunities in finance for people looking to create a more sustainable, responsible world
by Fred Heritage
Not so long ago, the principles governing climate science and capitalism were in greater opposition than today. Success in business used to mean forgoing greener, more responsible choices in the hunt for larger profits, while advocating for the environment or social change was the domain of a select few.
Today, with the science behind climate change becoming mainstream, consumers around the world are increasingly demanding more sustainable goods and services, while investors are placing ever-greater emphasis on impactful projects with stronger responsible finance credentials.
In its ESG global survey 2021, BNP Paribas finds that 22% of the 356 respondents (institutional investors from Europe, North America and the Asia Pacific) integrate ESG into at least 75% of their portfolios, with this figure predicted to grow. By contrast, similar analysis from the bank in 2019 finds not one respondent thinking that 75% or more of an investor’s portfolio would integrate ESG by 2021. This shows just how quickly responsible finance has risen up the agenda for both buyers and sellers of financial products.
Opportunities abound
The uptick in demand for sustainable goods and investing has resulted in a skills shortage in responsible finance. Companies looking to future-proof themselves by boosting their ESG understanding and developing more sustainable products simply can’t hire the expertise they need quickly enough.
In 2021, a survey of publicly traded corporations in the US conducted by boutique recruitment firm the Weinreb Group finds the number of chief sustainability officers (CSOs) skyrocketing from 29 in 2011 to 95 in 2021 – an increase of 228%. The research reveals 2020 to be a boom recruitment year, with 31 companies appointing their first CSO.
With high demand, it’s no surprise there are growing opportunities in responsible finance for people looking to create a more sustainable, responsible world. In an article for Harvard Business Review, author and technical leader at Amazon Web Services, Nahia Orduña, suggests that although “there is no unique path when it comes to sustainability”, there are avenues to explore for anyone interested in shifting their career in that direction.
Orduña outlines four ways to home in on a career in sustainability: educate yourself on the key principles; identify your own area of expertise; upskill yourself so you have the tools to succeed in your chosen field; and apply to companies that share your values.
Orduña suggests several questions to ask potential employers, including asking where the sustainability team sits within the organisation, whether it’s a small, independent team or if it has sustainable business practices embedded across departments. And if the company doesn’t have a sustainability team, it is worth asking what ESG-related goals they are pursuing. “Don’t be shy about digging deeper,” she adds. “It’s worth taking the time to find an organisation whose values align with your own".
How the CISI can help
At the CISI, there are several short training courses and modules designed to help those looking to build successful careers in responsible finance.
The Sustainable and Responsible Investment professional assessment is a short online course covering essential knowledge for all types of finance professional, from wealth and investment managers to insurance professionals. Over six hours of learning, participants learn key definitions of responsible finance, an understanding of ESG and its integration, greenwashing, what the global developments are, and how they apply to consumers. It can be studied at its own pace and on any device, with participants benefiting from a certificate from a Chartered body on completion.
The CISI’s Climate Risk Certificate aims to develop participants’ professional knowledge, understanding and skills relating to climate change, climate risk and sustainable finance. With modules focusing on aspects like measuring and modelling climate risks, and the regulatory approaches to climate at the global, national and regional levels, this qualification is geared towards the transition to a more sustainable, low-carbon world and puts companies and their clients at the heart of this change.