Focusing on the battle for talent in the ESG industry

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Focusing on the battle for talent in the ESG industry

In previous years it was less likely that someone would be willing to reduce their pay to perform more meaningful work or be prepared to leave their job if their values didn’t align with their employer. Yet, it seems prospective candidates are willing to take this approach.
The expectations of a more transparent, authentic and data-focused strategy towards climate action are not going away any time soon. Some organisations feel pressure from employees expecting companies to take the climate challenge more seriously. This display of commitment directly influences talent attraction, retention and the overall integrity of their business.

The 2021 Trust Barometer presented by Edelman discovered that after several years of recovery, the finance industry experienced a considerable decline in trust. While many businesses had a more positive outcome, the financial services market didn’t follow a similar path. The battle for ESG talent is well underway, and an anticipated surge of new applications after a period of resignations raises the question of how the rising talent pool measures a business’s ESG credentials?

Focusing on sustainability may not necessarily be a dominant environmentally-swayed decision but it is a necessity if the finance industry is to sustain itself and create a reliable talent pipeline. There are various ways to determine the decline in trust in the finance system, but ultimately the main issue concerned with people and our planet is the years of discussions but lack of action.

Additional skills development in ESG is required, especially in green finance, to meet the anticipated growth in demand as pressure to accelerate green finance plans increases. One particular barrier to adopting green finance boils down to the lack of appropriate skills and expertise on the board. Recruiting and developing this area is regarded as a top priority for many businesses, but it is challenging to reach out and attract the necessary talent pipeline.

Firstly, ESG must be incorporated within the culture of a business rather than considered a separate section. As ESG becomes a vital aspect of how we do business, we will probably see the idea of an ESG professional decline and become a mainstream role within a company.
All studies show that the demand for ESG talent will exceed the supply. The concept of an ESG professional is still quite now, so the level of experience, skills and qualifications will vary from one business to another. The existing high demand and relatively small talent pool also mean that talent development within a finance business is equally vital as performing external recruitment.

Providing staff with the opportunity to train and pursue new qualifications is critical. To date, the level of training options remains relatively low, reflecting the early stages of green finance products and services. As green finance grows, however, the knowledge and expertise in ESG will need to increase and become a core part of a financial service professional.

From a business perspective, employers seeking top talent need to demonstrate their commitment to ESG. Candidates are focused on trust, authenticity and visible action on their ESG plans. The next generation of prospective candidates is inspired by these factors, in many cases more so than salaries and bonuses. Providing clear communication and open dialogue will be far more productive in the long term. The employee demand of working for a transparent and authentic business committed to the climate challenge is here to stay.

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