The Role of the Head of ESG

Role of ESG Experts

Qualifications for ESG Roles

Getting into the Environmental, Social, and Governance (ESG) field isn’t a one-size-fits-all deal. Depending on what specific hat you want to wear, qualifications can range widely. Loads of people in this line of work come with backgrounds in Environmental Science, Sustainability, Finance, Law, or Economics. Below’s a quick look at some common traits and experiences different ESG gigs typically call for:

Job Role	Typical Qualifications	Experience Needed
ESG Consultant	Degree in ESG, Sustainability, Finance, Law, Economics	Varies
ESG Research Manager	Degree in related subjects	5+ years digging into ESG research
ESG Analyst (Entry-Level)	Degree in Sustainability or Environmental Science	Fresh out of uni, no big experience needed
Senior ESG Analyst	Advanced degree in the field	2-3 years of hands-on ESG work
ESG Project Engineer	Degree in Engineering or Environmental Management	Depends on how tough the project is

If you’re a student dreaming of an ESG career, start racking up those degrees and hunt down some internships or newbie roles to kickstart your practical know-how.

For a deeper dive into launching an ESG Analyst career, take a look at our esg analyst careers page.

Skills Needed in ESG Roles

Having the right paperwork is cool, but ESG roles also demand a toolbox full of skills. You’ll need these to mix sustainability into the business scene smoothly, like oil in an engine:

• Number Crunching: Got to be able to chew through data and spit out useful reports on how ESG stuff is doing.
• Talking the Talk: You’ve got to explain fancy ESG ideas clearly to folks who might not have a clue.
• Herding Projects: Juggling multiple tasks and making sure they hit the right ESG targets needs some serious management mojo.
• Know Your Stuff: Whether it’s engineering, environmental matters, or finance, being on top of the techy bits is key.
• Creative Fixing: Got to come up with smart solutions to tricky sustainability issues to keep things moving forward.

Key Skill	Description
Number Crunching	Smartly reading and making sense of ESG data
Talking the Talk	Communicating complex ideas simply to keep everyone in the loop
Herding Projects	Keeping all the ESG projects on track and on target
Know Your Stuff	Technical know-how specific to the role, be it engineering, etc.
Creative Fixing	Thinking outside the box for eco-friendly solutions

To better understand what skills are in the ESG toolkit, check out our esg consulting page.

By welding the right qualifications with sharp skills, ESG experts can lead the charge in weaving sustainability into the core fabric of organisations. This assures they stay on the right side of esg regulations, pushing for real change.

Evolution of Chief Sustainability Officers

Historical CSO Responsibilities

Back in the day, Chief Sustainability Officers (CSOs) were mostly about making the company look green and friendly without getting their hands too dirty with the nitty-gritty of business strategy. Their job was more about telling good stories to impress outsiders—specifically, the folks who have a stake in the company. The important business nitty-gritty, like chatting with shareholders or steering the business ship, was left to bigwigs like the CEO, CFO, and head honcho of investor relations. This meant that CSOs didn’t really get to poke their noses into the big decisions or how the company ran its show.

Modern CSO Challenges

Fast forward to today, and the CSO gig has done a bit of a 180. These days, CSOs are stepping out of the PR shadow to really get into the thick of things, ensuring that environmental, social, and governance (ESG) issues aren’t just a nice idea stuck on a noticeboard but are genuinely stitched into business strategy. To do this, they’ve gotta be best buddies with the CFO, CEO, and investors, and believe me, that’s no small feat.

The dream scenario? CSOs wouldn’t even be needed because ESG would be part of everyday corporate life, as natural as morning coffee. But until we get to that harmonious state, they’ve got their work cut out for them with a few key challenges:

• Making sure that business bucks and plans fit the ESG bill
• Keeping stake courting chats real and doable
• Chumming it up with those all-important investors
• Rallying the entire organisation to get on board with the whole ESG thing

In this messy transition, CSOs need to have their noses in all sorts of pies—financial, environmental, social—making sure what they see matches the company’s future dreams. For a peek into how ESG plays out in other key roles, check out our write-up on the CFO’s role in ESG integration.

By staring these challenges straight in the face, CSOs today can make sure that ESG isn’t an extra, but just how stuff is done round here. Fancy diving deeper into the world of ESG and company strategy? Our other pieces on ESG strategy, ESG policy, and ESG compliance have got you covered.

ESG Governance in Companies

Board Oversight of ESG

These days, board oversight over Environmental, Social, and Governance (ESG) practices isn’t just a nice-to-have—it’s a must. Companies are hiring chief sustainability officers (CSOs) like hotcakes, with 2021 seeing more hirings than the past half-decade put together. Need some numbers? An EY review peeped into 79 of your Fortune 100 companies and found that 85% of them have some board committee keeping an eye on environmental, social, or corporate social responsibility matters.

Company/Titles	Board Committee Oversight (%)
Fortune 100	85

Most of them dump this task on the nominating and governance committee. According to a Corporate Board Member and EY Center survey from early 2021, the whole board usually jumps in on climate-related risks, along with making sure workspaces are all about diversity, equity, and inclusion (DE&I).

Check out our article on ESG Principles for more nitty-gritty info on aligning sustainability with corporate goals.

ESG Committee Allocation

When it comes to dishing out ESG tasks within board committees, it’s crucial for keeping everything shipshape. The EY deep dive into Fortune 100 companies showed that while lots of them say their board committees keep an eye on ESG stuff, most of them hand these duties off to their nominating and governance crew.

Committee	Responsibility
Nominating and Governance	ESG Oversight
Full Board	Sustainability Risks and Opportunities

EY also pointed out that even if specific groups get tapped for these roles, the full board doesn’t just sit around. They stay busy taking a panoramic view of sustainability risks and opportunities. This layered approach keeps the company’s ESG goals in sync with their big-picture plans.

Curious about how companies fine-tune their ESG strategies? Dive into our ESG Strategy article. And if you’re into the number-crunching side of things, our ESG Data piece will give you the full lowdown.

Impact on Financial Officers

CFO’s Role in ESG Integration

The job of a Chief Financial Officer isn’t what it once was, that’s for sure. These finance whizzes are tackling everything from planet-friendly scores to eco-savvy supply chains and carbon crunching spreadsheets. It’s way beyond just crunching numbers now. CFOs are the backbone of steering corporations towards green goals because they’re the ones with the know-how to rock an ESG strategy. Nailing ESG performance doesn’t just leave you with a clean conscience – it slashes borrowing costs and boosts how companies fare financially and beyond.

To ace this new gig, CFOs need to get a grip on all sorts of eco-data and figures. They’ve got to wrap their heads around rules like those UK ESG reporting requirements and how to use gizmos that crunch this ESG data. By weaving ESG into the money plans, CFOs can make green ambitions gel with how they do business. Want more intel on how ESG goals can shake up the bottom line? Click here.

Financial Benefits of Strong ESG Performance

So, why should CFOs care about going green? Well, good ESG scores don’t just make your brand smell like roses; they actually mean big bucks. Over 50% of CFOs reckon that upping their ESG game cut down on capital costs. That’s because it shows you’re managing risk like a pro, improves how investors see you, and opens doors to green finance markets. All of this makes securing funds a whole lot easier, with nicer terms on your loans and investments.

Supporting sustainability ain’t just a drain on resources anymore. Smart ESG moves are the secret sauce to building hidden treasures like trust and brand love. Check the S&P 500 and you’ll find that a whopping 90% of a company’s worth is in things you can’t touch—reputation, loyalty—all of which get a nice boost from strong ESG practices.

Benefit	Impact
Reduced Cost of Capital	Better risk management, enhanced investor perception
Increased Intangible Value	Brand reputation, customer loyalty

If you’re keen for more tips on making cash from your green efforts, dive into esg funds and esg criteria for pointers on what to track to get the best out of ESG in your financial game plan.