In recent years, the job market has witnessed a significant surge in job postings related to environmental, social, and governance (ESG) segments of companies. According to data from Indeed, these job postings have risen by an impressive 220 per cent over the past two years. While this statistic indicates substantial growth, it is essential to put it into perspective and that’s why we have Sambitosh Mohapatra, ESG expert at PwC. We will talk about the rising trend, job offers, skills required and more. Stay tuned till the end of the podcast to know all about it.

The increased demand for ESG professionals is driven by various factors. Historically, major shifts in the job market occurred in response to specific needs. For instance, when India liberalized in 1991, management graduates became highly sought after. Similarly, the advent of financial accounting standards created a demand for chartered accountants. The technology boom of the late 1990s and early 2000s led to increased opportunities for IT professionals.

The ESG field encompasses a wide range of skills and expertise. The first stage involves individuals who can align strategy with sustainability principles. Other areas of expertise include climate risk assessment, building resilient infrastructure, carbon markets, net-zero strategies, circularity in resource management, water stewardship, greening the supply chain, operational and information technology implementation, reporting, assurance, tax, corporate social responsibility (CSR), and social impact.

Companies seeking to strategize their ESG programs should consider two key aspects. Firstly, while there is a need for external experts, there is also a vast opportunity for capacity building within their existing workforce. By raising awareness and providing training on sustainability issues, organizations can empower their employees to incorporate sustainability principles into their existing roles and services. Sustainability should not be confined to a single department but embraced by all.

While the immediate demand for ESG professionals is evident at entry and mid-level positions, there is also a reskilling trend occurring at the top level. Executives are taking initiatives to educate themselves about sustainability issues and incorporate them into their roles. This blend of new hires and reskilling ensures a holistic approach to ESG integration throughout organizations.

Several factors contribute to the surge in ESG job postings. Increasing citizen awareness, government policies, regulatory mandates, and consumer demands have created a need for companies to prioritize sustainability. Investors also face pressure to align their portfolios with responsible and sustainable companies. These factors, collectively, drive companies to embrace ESG practices and seek professionals who can lead their sustainability efforts.

The growing interest in ESG careers suggests a trend that will continue well into the future. The demand for ESG professionals is expected to grow exponentially, mirroring the perpetual demand witnessed in other specialized fields. The job market for sustainability-related roles is only in its infancy, and as more companies recognize the importance of sustainability, the demand for professionals skilled in ESG principles will continue to rise.

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