Focus on ESG – three letters that will become central to businesses all over the globe.
ESG will dictate how businesses will run going forward with many trillions of global investments and here’s how:
A large, highly profitable, national coach operator was replacing its fleet with new diesel coaches at vast expense. Their bank refused funding even though they had a strong credit rating. Why diesel they asked, we don’t want to be part of that – it’s not good for the planet. The coach operator went to other banks – the same answer. They had to look at low emission alternatives.
Did you know…
- 84% of investors actively considering incorporating ESG into their investment criteria
- 91% of students said they care about working for an ethical company
- 56% of consumers say that environment and social considerations affect their buying choices
The world faces crisis on multiple fronts
ESG will become a key strategy reaching into every aspect of our daily lives. Any organisation that chooses short-term profit over ESG commitments will regret their decision – even more so in a company sale scenario where multiples with be heavily dented in “ESG agnostic” companies.
Antidote to greenwashing
Metrics such as kgCO2e, m3 water usage, %proportion of power supply indicate green. The quantitative measurement of metrics needs to be robust. If you claim your brand to be “net-carbon neutral” you better be sure of your facts.
Investors and pension funds are good at this, and scrutiny will grow e.g., you are an online high-end clothes retailer who sources garments from India. You will need to know, amongst other things, the CO2 impacts through your entire supply chain e.g., the Indian supplier ESG metric tracking (electricity use, transport related CO2, modern slavery controls) to name but a few.
Done properly you can then measure accurately to set your baseline and future targets. What gets measured gets done.
Careers in ESG
There will be so many options for accountants, climate specialists, data/AI experts, M&A experts, programme change, legal, supply chain specialists, clean manufacturing – and many more.
Degrees in ESG sub-specialisms and accreditations will ramp up. You may have the ESG required skills – what employers will need are staff that are truly passionate about ESG and live their lives with one eye on how they are making the planet a better place. It is far wider than a cv list of jobs they’ve done. You need to live it.
War on talent
Large companies and the world’s largest consultancies are ramping up, irrespective of recessionary considerations. They need to be ready to attract talent to meet the demands that ESG places on them. You will see new job titles at senior levels such as “CEO 3D Carbon Accounting” and “Global Director of ESG”, often board level appointments.
Investment buckets are very big
“As part of its ongoing multi-billion-dollar investment program, KPMG plans to spend more than US$1.5 billion over the next three years specifically to focus on the Environmental, Social and Governance (ESG) change agenda.
The key to the transformation will be embedding ESG in the organization and client solutions to drive measurable change.”
ESG experts are helping large multinational businesses meet their net-zero commitments and planning their decarbonisation journey in a very rigorous way. Supporting developing nations in their ESG measurement and actions is also becoming key.
We are proud to be working with some of the world’s largest firms to help them build their ESG capability and talent pipeline. The competition is extremely tough and will only get tougher – candidates that can evidence their passion in ESG will have a head start (recognised accreditations, online courses, volunteering).
ESG is waiting for you. Dive in!
If you are considering a career switch to ESG or already immersed in ESG – why not register your interest and CV with The Engage Partnership at https://jobs.engagewithus.com/register.aspx – fully GDPR compliant, self de-register anytime.
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