The ESG sector is still relatively new but rapidly expanding, and demand is outpacing supply.
The rising significance of environmental and social factors in banking and investment decisions has led to the emergence of the ESG banking sector. For the past few years it has experienced a surge in demand for professionals, as organisations increasingly recognise the importance of integrating sustainability and responsible practices into their operations. However, the availability of skilled candidates remains a significant challenge for hiring managers, especially in senior positions.
Let’s highlight some of the factors that make it challenging for employers to hire in this area.
- •Rapid industry growth
- •A lack of ESG education among existing staff
- •A constantly changing regulatory landscape
- •Some recruiters lack an understanding of ESG
Tips for overcoming ESG talent shortages
Seek out specialist agency recruiters
Recruiters are realising that this is a growing space, and they too are competing for top talent in the area. Many agencies are introducing specialist ESG desks.
Look outside financial services for transferable skills
Consider candidates from other sectors. If they already have the education and understand the principles, it will be easier to upskill them on the financial ecosystem.
Generate interest in ESG internally
Make sure your organisation is talking about it and raising awareness of its importance. Provide resources such as books, courses, and initiatives for employees to educate themselves.
Partner with universities and training institutions
There are now plenty of ESG-related degrees and non-degree ESG courses, where you can find enthusiastic and up-skilled individuals.
In summary
When any market is facing a candidate shortage, it is best to seek out specialist agency recruiters. They will know candidates who are not actively applying to online job vacancies, and will have access to larger and more unique resources when searching for suitable people. If agency recruiters are not an option, I believe education is crucial to filling the gap, but this option takes time, so it is important to start implementing an internal strategy now.
Facing an ESG skills shortage?
To discuss how to overcome your ESG talent gap, get in touch with Daniel.
Email Daniel Baker