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Career Insights: The Growing Field of Sustainable Investing

July 06, 2024

Career Insights: The Growing Field of Sustainable Investing

With the global interest to build a greener and safer world, many new career paths are emerging. Sustainable Investing Careers are one such path that has seen a substantial growth over the last decade. More and more financial professionals are aligning their work with the goal of sustainability, turning traditional investing on its head.

In this article, we will explore:

  • What a career in sustainable investing entails
  • The current job market for sustainable investing careers
  • The qualifications required to break into this field
  • The potential growth and future of sustainable investing careers

What is Sustainable Investing?

Simply put, sustainable investing is an approach to investment that includes environmental, social and governance (ESG) criteria in portfolio selection and management. It's an approach that not only aims to generate financial returns, but also to bring about positive societal impact.

As the world grapples with climate change, inequality and other systemic issues, sustainable investing careers are becoming increasingly important. Financial professionals in this field may have a variety of roles, including:

  • Portfolio managers who favor companies that prioritize sustainably
  • Analysts who focus on evaluating companies' ESG performance
  • Financial advisors who guide clients towards sustainable investing options

What makes a sustainable investing career special is not only the potential to generate wealth, but also the opportunity to contribute positively to society and the environment.

The Job Market for Sustainable Investing Careers

As awareness about the urgency of the world’s environmental and social crises grows, so does the demand for professionals trained in sustainable investing. A 2020 report by the Global Sustainable Investment Alliance revealed that globally, sustainable investing assets reached $35.3 trillion, a 15% increase from 2018.

Here are some key points to know about the job market for sustainable investing careers:

  • Demand for sustainable investing professionals has been on the rise in recent years.
  • Job opportunities exist in various sectors, including banking, asset management, private equity, financial advising and consultancy.
  • Opportunities are not only available in Europe and North America, the well-established markets, but also in emerging markets such as Asia and Africa.

Breaking into a Sustainable Investing Career

As the field of sustainable investing continues to grow, more opportunities are emerging for professionals with a passion for making a positive impact. Here are some key ways to break into a sustainable investing career:

  • Gain relevant education: A background in finance or economics can be a great starting point. Increasingly, universities and institutions are offering degrees and certificates specifically in sustainable finance or ESG investing.

  • Build experience: Building experience in finance, particularly in investment is key. This could be obtained through internships, volunteering or entry-level positions.

  • Understand ESG issues: Stay informed about the latest environmental, social and governance (ESG) criteria and industry trends.

  • Network: Connect with professionals in this field through sustainability-focused networking events and online platforms. This can provide valuable insights and potential job opportunities.

The Future of Sustainable Investing Careers

The sector’s potential for growth is promising. According to a survey by the Chartered Financial Analyst (CFA) Institute, more than 85% of CFA Institute's members and candidates anticipate their involvement with ESG investing to increase.

Key drivers behind this projected growth include:

  • Growing awareness of environmental and social issues, propelling the demand for sustainable investment.

  • Increasing regulation related to investments’ impact on society and environment, necessitating ESG expertise.

  • The younger generations, particularly millennials, prioritizing sustainable investment options, driving demand for sustainable finance professionals.

The future for sustainable investing careers is promising, and it's a journey that's not just about financial return but also about building a better world. Whether you're a finance professional looking to pivot, a recent graduate exploring your options, or someone simply interested in sustainable investment, now is an exciting time to build your career in sustainable investing.

The field of sustainable investing careers is expansive and constantly evolving. It offers the possibility to not only build a financially successful career but also make a meaningful impact on the state of the world. It’s certainly a career path worth considering for anyone looking to merge their financial acumen with their passion for sustainable development.

As the world seeks alternatives to the traditional ways of doing business, the careers in sustainable investing continue to expand. Dive into this rewarding field and play your part in creating a greener, more equitable world.

July 06, 2024

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