HOW TO ACCELERATE YOUR CAREER IN ESG AND SUSTAINABLE INVESTING

February 20, 2023

On October 19, 2022, CFA Society Toronto held a panel discussion on career growth and opportunities in environmental, social, and governance (ESG) and sustainable investing. The panellists included Catherine Philogène, Vice President, Product Management, ESG Funds, RBC Global Asset Management; Mayur Mukati, Associate Director, Sustainalytics; Bill Vlaad, CEO, Vlaad and Company; and Sean Cleary, CFA, Chair of the Institute for Sustainable Finance. The session provided helpful insights on how to accelerate your career in the ESG field. This article presents some of the highlights of the session.

Strong demand in the ESG space

The Principles for Responsible Investment (PRI)¹ shared that, as of March 31, 2022, 4,902 asset owners, investment managers, and service providers, representing an estimated US$121.3 trillion in assets under management, were signatories to the PRI, demonstrating their commitment to ESG.² For comparison, the entire market cap for the Canadian and US stock markets was US$2.8 trillion³ and US$46 trillion,⁴ respectively, as of late 2022.

Scarce supply of ESG resources

While there is an increasing demand for consideration of ESG factors, the supply of workers with the required skills needs to catch up. Headhunters are under pressure to fill ESG-related roles, as there is a small pool of qualified candidates. Recruiters, many of whom have little experience with ESG positions, struggle to assess candidates attempting to transition to the field. Sean Cleary referenced some astonishing statistics: according to 100 institutions surveyed, 75 percent said sustainable finance ranks as an “important” or “the most important” thing they do. In contrast, 50 percent of the institutions said they have difficulty finding high-quality and suitable candidates.

How to accelerate your career in ESG and sustainable investing

1. Stay updated on market news while accepting that you can’t know it all

ESG is an expansive topic. Environmental considerations include:

Climate change
Biodiversity
Air and water pollution
Deforestation
Energy efficiency
Waste management and water scarcity

Social concerns include:

Customer satisfaction
Data protection and privacy
Gender and diversity
Employee engagement
Community relations
Human rights
Labour standards

Governance topics include:

Board composition
Audit committee structures
Bribery and corruption
Executive compensation
Lobbying
Political contributions
Whistleblower schemes ⁵

As such, it is better to focus on the value you can add to your field of interest: know the regulatory changes and market trends and understand what different institutions are doing in the ESG space for your chosen field. The panellists advised against “reading the news the night before the interview,” as there is an overwhelming newsfeed of information on ESG. The panellists shared a few appropriate resources to help stay current on the ESG landscape:

2. Obtain the relevant certifications

Bill Vlaad commented that Canadian companies rely on certifications to filter out candidates, which may differ from the practice in other countries. In an era in which ESG experience is in high demand, relevant education helps differentiate candidates from the competition. The other panellists supported this viewpoint and suggested a few programs that offer certifications in the ESG space:

3. Build your own network with ESG in mind

People in the ESG space are passionate about what they do and want to support others who share the same passion. If you are interested in ESG but don’t currently have relationships with those in the field, reach out to connect with like-minded individuals. You can leverage sources like LinkedIn to reach out to individuals in your area of interest and start a dialogue. As with building any new network, growth may initially be slow, but as you connect with more people, your network will become more significant. Exercise patience, and you will eventually establish a strong network in ESG.

4. Frame your experiences and ace the interviews

Instead of recounting general past experiences in hopes that the interviewer will identify relevant information, focus your delivery on the transferrable skills and knowledge the interviewer is seeking. Keep your audience in mind: frame your history to highlight how your experience leaves you well-positioned to add value.

Be open about your values, and don’t be afraid to ask hard questions to ensure the employer’s ideals complement your own. Candidates tend to refrain from asking specific questions, fearing that the answer may negatively impact the employer’s perception of them and change their standing in the interview. Still, it’s often better to vet values upfront rather than regret your fit with the organization down the road.

Conclusion

The ESG industry is witnessing a rapid expansion of opportunities as the field continues to gain social and financial importance. If you are interested in further exploring how you might contribute to this field, aim to stay current on the news, achieve relevant certifications, build your network, and frame your experience to ace the interviews!

¹ The PRI is a United Nations-supported international organization that advocates for incorporating ESG into the investment decision-making process.

²Principles for Responsible Investment. 2021-22 Annual Report. Principles for Responsible Investment, 2022

³CEIC Data. Canada Market Capitalization, 2012 – 2022. CEIC Data, Accessed December 1, 2022.

⁴ Siblis Research. Total Market Value of the U.S. Stock Market. Siblis Research, Accessed December 1, 2022.

⁵ CFA Institute. ESG Investing and Analysis. CFA Institute, Accessed December 1, 2022.

Date February 20, 2023

Tags ESG