ESG Analyst Salary Trends

ESG Analyst Salary Overview

Businesses are catching on to the buzz of embracing environmental, social, and governance principles. This makes ESG analyst roles hot property, especially in London, where the usual paycheck hovers around £53,000 (£71,000 for those counting in dollars) for up-and-comers with up to 5 years under their belts. Expect offers from about £35,000 to £82,000 ($47,000 to $110,000). eFinancialCareers’ 2023 numbers back this up, pegging average London salaries for ESG pros at $80,000 a year.

Across the pond in the U.S., fresh-faced ESG Analyst I folks start at roughly $83,890 per annum. Of course, these numbers swing, considering where you plant your feet, who’s signing your paycheck, how long you’ve been at it, and what the job specifics are.

Location	Average Salary (USD)	Salary Range (USD)
London (0-5 years)	$71,000	$47,000 – $110,000
London (average all levels)	$80,000	–
United States	$83,890	–

Companies are offering shiny packages to swoop up savvy ESG experts because they’re pivotal in steering orgs through their sustainability goals and ESG rules. For the lowdown on this career trail, check out our detailed dive on ESG analyst careers.

Factors Influencing ESG Salaries

A mix of factors sways the paycheck for ESG analysts:

1. Experience: More years under your belt means more dough. Seasoned ESG pros bring a treasure trove of know-how on ESG strategies to their gigs, nudging firms closer to those all-important sustainability targets.

2. Location: Geographically speaking, places like London and New York will have you laughing all the way to the bank, especially compared to lower-key spots.

3. Educational Background and Qualifications: Fancy degrees and certificates can bump your salary. Skills in ESG data, regulations, and sustainability reporting are golden.

4. Employer: Who you work for matters — be it banks, consulting outfits, or big shot corporations. If they’re keen on sustainability, expect them to open their wallets to nab top-notch talent.

5. Role Specifics: The job’s nuts and bolts also play a role in paycheck size. Leading as a Head of ESG or being a sought-after senior consultant usually means more cash than starting as a rookie analyst.

Figuring out these factors can arm ESG professionals to better steer their career decisions and score appealing pay deals. For the nitty-gritty on qualifications and skills essential for ESG roles, mosey on over to our section on qualifications and skills for ESG roles.

Keeping these points in mind helps both the seasoned experts and newcomers to understand what’s in style and what’s expected in the ever-thrilling ESG arena, paving the path for informed career steps.

Career Paths in ESG

Exploring a job in ESG (Environmental, Social, and Governance) is like opening a door to a world jam-packed with options for people who want to change how businesses operate sustainably and ethically. This guide gives you a sneak peek into different career paths and clues you into the qualifications and skills you might need to succeed.

Various Career Options in ESG

• ESG Analysts: These pros are the detectives of the company, digging deep into the numbers that tell the tale of carbon footprints, diversity, and how things are run. Their work helps steer big moves and investments. They’re the folks diving into ESG data, figuring out the planet and society impact, ensuring companies stick to ESG goals and guidelines. Want the nitty-gritty? Check our esg analyst careers page.

• Sustainability Managers: This crew is all about slashing the pollution and waste a company puts out, making sure everything’s as green as it can be. They’re the ones making sure businesses don’t just talk a big game about being eco-friendly—they do it.

• CSR Managers: That’s Corporate Social Responsibility for ya—these guys get companies plugged into community projects and good deeds, ensuring they follow through on talk of ethical business and lifting up employees. Profit’s cool and all, but being good to folks is part of the package.

• ESG Consultants: They’re the advisors helping businesses put their money where their mouth is when it comes to ESG stuff. It’s all about turning plans into action and making real changes inside the company.

• Impact Investment Analysts: Think of these analysts as double-duty detectives—scoping out financial returns and social wins. They help investors find the sweet spot where moneymaking and good vibes meet

• Ethical Sourcing Specialists: These people are like the ethics police for the stuff companies buy, ensuring supplies meet moral standards through checks and audits, keeping harmony with ESG rules.

Role	Main Task
ESG Analyst	Evaluating the company’s ESG metrics and reporting
Sustainability Manager	Reducing waste and boosting energy smarts
CSR Manager	Creating projects that give back to the community
ESG Consultant	Advising on fitting ESG into everyday business
Impact Investment Analyst	Checking investments for their planet and people impact
Ethical Sourcing Specialist	Keeping buying processes squeaky clean ethically

Must-Have Knowhow for ESG Jobs

Getting good at ESG requires some core skills and papers in your pocket. These gigs often want people who can crunch numbers, think ahead, and really get how ESG principles work.

• Schooling: You’re going to need a background in things like environmental or social sciences, or maybe finance. Going for a master’s in sustainability or environmental management is a plus.

• Certifications: Having something like the CFA Institute’s Certificate in ESG Investing or GRI (Global Reporting Initiative) standards in your pocket can give you an edge over the competition.

• Analytical Skills: You’ll need to be sharp at sifting through ESG data and metrics. Knowing your way around the ESG statistics is a must if you want to offer valuable advice.

• Communication: Being able to explain what’s what to the bosses and others who count is key. Clarity’s your friend when it comes to complicated ESG ideas.

• Tech Skills: Being hip to ESG reporting gadgets and data tools can come in real handy.

• People Skills: Whether you’re a CSR manager or advising as a consultant, working well with others and building relationships is crucial.

Requirement Type	Details
Schooling	Environmental sciences, social science, or finance
Certifications	CFA ESG Investing, GRI Standards Certs
Analytical Skills	Understanding ESG data and metrics
Communication	Breaking down complicated ESG topics
Tech Knowhow	Software and data analysis tools
People Skills	Managing relationships with stakeholders

Knowing what’s needed to do well in ESG roles can keep hopefuls on track with their career goals. For extra learning, head over to our esg training section.

ESG Salary Statistics

Want to know what’s happening with ESG Analyst pay packets? Keep reading to find out about what’s happening in your area and how it’s changed over the years.

ESG Analyst Salaries in the UK

Over in the UK, the wages for ESG analysts aren’t one-size-fits-all. They shift depending on how seasoned you are and where you’re working from. Think of ESG analysts as the detectives of the corporate sphere—sifting through data to gauge how companies are performing on the environmental, social, and governance fronts. They’re the advisors behind crucial business decisions.

If you find yourself working as an ESG analyst in London with around five years under your belt, you’re looking at an average salary of roughly £53,000 (about $71,000). But remember, it’s not a fixed figure; it can range from a low of £35,000 ($47,000) to a high of £82,000 ($110,000), swinging with your experience and the size or scope of where you’re working.

Post the five-year mark, those figures go up—reflecting sharper skills and deeper knowledge.

Experience	Average Pay	Range
Up to 5 yrs	£53,000 (~$71,000)	£35,000 – £82,000 (~$47,000 – $110,000)
5+ yrs	Jumps up noticeably	Higher spectrum with more expertise

Businesses are really investing in their ESG teams due to the rising need to be eco-friendly and ethically on point.

ESG Analyst Salary Trends

Now, onto the trends in pay for ESG analysts. Clearly, these roles are gaining some solid recognition in the business world. Pay for these pros isn’t just tempting; it’s showing serious growth as the hunt for more ESG-savvy folks increases.

Why the upward curve in salaries? A few reasons:

• Microscope Effect: Companies are under more pressure to clean up their ESG act. Hence, the hunt for sharp ESG analysts is on.
• Strategic Roles: ESG analysts have a huge say in crafting top-notch ESG policies and ESG strategies.
• Experience Counts: Those who’ve been in the field for over five years pocket higher salaries, showcasing just how much seasoned experts are valued.

And by the looks of things, these trends are only going to soar. More companies are waking up to the need for solid ESG figures and esg accountability.

So, if you’re aiming to break into this field full of impact and growth, know that things are looking good out there. The rising importance of ESG values in business decisions makes sure those with ESG expertise have got a promising future. Fancy knowing more on the career side? Check out our run-down on ESG analyst jobs.

ESG Integration in Executive Pay

Companies are chucking the old playbook when it comes to executive pay, blending ESG factors into the mix. There’s a fresh wind blowing how businesses think about what counts for top brass bonuses and incentives—taking a closer look at the environmental, social, and governance (ESG) aspects.

ESG Metrics in Company Compensation

More big companies are jumping on this ESG bandwagon when it comes to doling out executive pay. A 2023 check-up on S&P 500 giants shows over three-quarters (75.8%) are weaving ESG factors into their leaders’ compensation deals. Just look at the numbers from 2021, where only about two-thirds (66.5%) were doing this ESG thing.

Year	Percentage of S&P 500 Companies Using ESG Metrics in Compensation
2021	66.5%
2023	75.8%

Within this ESG craze, diversity and inclusion are the hot tickets. A whopping 75.3% of these companies are focused on it, emphasizing the importance of a mixed and inclusive team. Human capital management isn’t slouching either—around 90.4% are keeping an eye on how they manage their peeps, from keeping them around to building their skills and keeping them pumped.

ESG Metric Type	Adoption Rate Among S&P 500 Companies
Diversity and Inclusion	75.3%
Human Capital Management (HCM)	90.4%

ESG Performance Impact on Executive Pay

ESG performance’s becoming a real player in how executives get paid. More incentive plans are tying a chunk of executive pay to these ESG targets, syncing up what’s good for the execs with what’s good for the business in the long run. It’s a win-win that boosts confidence among investors too.

Environmental elements are also elbowing their way to the forefront—things like cutting down carbon footprints and boosting energy efficiency are becoming part of the compensation conversation. By 2021, about a quarter of US-listed firms had slotted in some form of ESG norm into their executive pay, climbing up from 16% back in 2019.

Year	Percentage of US-listed Companies Including ESG in Pay Packages
2019	16%
2021	25%

Big-league companies, with their fancy tech and deep pockets, are pioneering specific ESG performance measures. They can collect all sorts of data, paving the way for snazzy incentive plans that echo their ESG promises. If you’re curious about how they measure ESG, check out this detailed piece over on esg metrics.

The ESG wave in executive pay is all about linking corporate rulebooks with green and sustainable business moves. Those who get it right shine as champions of ESG values and show the way in this new business age.

If your future’s headed towards being an ESG analyst, understanding the weight of ESG in executive compensation is a must. For more on this and the ripple effect on ESG rules, pop by our sections on esg analyst careers and esg regulations.