ESG or Sustainable Finance is a hot topic right now, although there are varying definitions of what it means. In it's simplest form, it’s a set of guidelines which outlines how a particular entity’s actions impact the environment, society, and others around them. It’s become a staple in the world of Financial Services as more investors and firms take an active approach to making sure their ESG impact is minimised.
ESG started as a broad set of issues, ranging from the carbon footprint of an office building to corruption within business. Since its inception, it has evolved into more specific and measurable standards. So why should we care? ESG gives a true indication of how a company safeguards the environment, and how it manages its relationships with the community, customers, employees, and suppliers it conducts business with. It also considers the company’s leadership, internal controls, audits, and shareholder rights to make sure they’re adhering to the rules and regulations in place.
It’s become easier than ever to transition into ESG and Sustainable Finance.
Be passionate: Working in ESG is not only a great career move, but also contributes to the wellbeing of our planet. Make sure you have an understanding of the sector and try to apply it to sustainable finance when speaking to industry experts. For example, ESG can help companies make more sound investment decisions based on the companies sustainability metrics.
Qualifications: There are many qualifications you can work towards to gain a better understanding of sustainability within financial services – we’ve seen CFA ESG certificates and CISL courses gain traction as leading ways to get into the industry, although there are also many free courses you can start with online.
Network: Get connected with fellow ESG enthusiasts on LinkedIn and market leading voices within green finance. There are plenty of ESG conferences which you can attend and these can take place online as well as in person.