ESG/Sustainability Analyst
ESG/Sustainability Analysts apply financial rigor to non-financial risks.
What does an ESG/Sustainability Analyst do?
ESG/Sustainability Analysts focus on assessing the environmental, social and governance performance of a company and anticipating potential risks associated with these factors.
Key skills
- Analytical
- Strong interest in ESG/Sustainability
- Attention to detail
- Communication
Becoming an ESG/Sustainability Analyst
Qualifications
In general, firms seek candidates with backgrounds in finance, business, or economics. However, degrees in environmental science, data science, or related fields are also highly valued. Earning the Chartered Financial Analyst® (CFA) credential is considered an advantage.
Who hires an ESG/Sustainability Analyst?
Institutions and companies that hire ESG/Sustainability Analysts include:
- Asset managers
- Private equity firms
- Investment banks
- Commercial banks
- Rating agencies and companies
Check out a typical job description
A typical job description for an ESG/Sustainability Analyst stresses the need to have a strong interest in and understanding of ESG/sustainability concepts as well as excellent collaboration skills.
In a buy-side environment (the area of finance that buys securities for money-management purposes), you may support investment analysts or portfolio managers in the collection, verification and disclosure of GHG emissions data across a portfolio to meet regulatory requirements.
You may also work on climate scenario analysis, ESG risk identification, and portfolio-level sustainability analytics. The role will involve working with large data sets, where you will exercise your analytical skills to draw well-constructed arguments and conclusions from the data. You might even be assigned to attend industry conferences and conduct field trips as part of your research.
Strong interpersonal skills will be important to engage with different teams within your organization as well as with company management and external stakeholders.
The sustainability area is constantly evolving, and you must stay on top of new trends and regulations across a variety of industries.
Now let’s talk career progression
Where this role could take you
Junior ESG/Sustainability Analysts can advance to senior roles where they will lead research for specific sectors or asset classes, engage directly with company management and investment teams, as well as shape the ESG strategy of the organization.
You could also transition to investment, corporate social responsibility, or strategy advisory roles.
Your future
In more senior roles such as Director of Sustainability Investing or ESG Product Manager, you will have the opportunity to directly contribute to the development of investing frameworks or related products and solutions.
As a Chief Sustainability Officer/Chief ESG Officer, you will set the ESG/Sustainability policy across the organization, and oversee sustainability reporting, engagement and stewardship activities. Meanwhile, Heads of Responsible/Sustainable Investing tend to be high-profile thought leaders.
The right role for you?
ESG/Sustainability Analysts can have real-world impact by supporting investment decision makers in assessing non-financial risks that affect both financial performance and broader societal outcomes.
Some challenges in the role include a lack of standardized data, which can make analysis difficult.
Junior ESG analysts may spend more time on data gathering and reporting than on strategic decision-making, which some may find limiting at first.
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