why finance professionals should embrace sustainability

Finance professionals aren’t only balancing the books anymore; they’re helping to balance the planet. Environmental, Social, and Governance (ESG) has evolved from a buzzword to a boardroom priority. Finance professionals must embed sustainability into their day-to-day decision-making. That means understanding green financial instruments, carbon pricing, and climate-related risk. And at the same time, keep up with fast-changing UK and global regulations. For those in finance, green fluency isn't nice to have. It’s essential.

The rise of green finance jobs

As industries adapt to sustainability-driven priorities, organisations are seeking finance professionals who have the skills to integrate business, finance, and sustainability. Green finance as a sector has expanded in the UK, despite starting from a small scale.

According to TheCityUK findings, the UK financial sector issued $28.9 billion worth of green bonds over the past decade, with issuance growing from $1.1 billion in 2012 to $37.4 billion in 2021.

The UK’s strong position as a global financial hub makes it well-equipped to lead in green finance. Its extensive network of financial services and professionals enables the country to offer a diverse range of sustainable financial products. This presents opportunities for finance professionals, whether they specialise in green finance or not. Sustainability considerations shape investment strategies, regulatory frameworks, and corporate priorities, requiring expertise across all financial roles.

Challenges at the crossroads of finance and ESG

Finance leaders find themselves before the intersection of two impactful reporting workflows: financial and sustainability. To meet external and internal reporting needs, companies are relying on finance teams to lend their perspective to scale sustainability reporting. As sustainability reporting moves into the finance suite, many finance professionals are finding they must enhance sustainability knowledge.

Evolving trends in hiring and career growth

HR teams are prioritising candidates with technical expertise and an understanding of ESG.

This growing demand has led to the emergence of specialised job roles that prioritise ESG expertise, sustainability knowledge, and cross-functional thinking. Key roles shaping the current industry include:

• Chief Sustainability Officers
• ESG Analysts
• Climate Risk Consultants
• Sustainable Finance Experts
• Ethical Marketing Strategists

The rise of roles like Chief Sustainability Officers, ESG analysts, and climate risk consultants signals this transformation. Yet, more than job titles, it is the ability to adapt and contribute to a future where success is measured not only in profit, but in positive impact.  Hiring managers are starting to embed sustainability into job descriptions, leadership programmes, and organisational culture.

Alongside having expertise in sustainability reporting and knowledge of green finance products, finance professionals must now:

• Decode climate risk and align with carbon-neutral goals
• Integrate ESG data into investment strategies
• Align financial planning with global reporting standards e.g. Global Reporting Initiative (GRI)
• Support boardroom decisions around climate risk modelling and regulation
• Navigate evolving green finance regulations to ensure compliance
• Identify emerging opportunities in sustainable investments

Other important skills include:

• Stakeholder management
• Communication
• Meeting deadlines
• Expertise in investor relations
• Ability to meet tight deadlines 

Demand grows for sustainability skills

According to The Sustainability Talent Gap in Finance report, sustainability reporting has emerged as the most sought-after skill within corporate finance departments. Half of companies (50%) have hired finance professionals in full-time sustainability reporting roles.

Almost 70% of companies named internal controls over sustainability reporting as a skill they are looking to fill right now.

Upskilling in green finance skills

As the need for green skills increases, the number of professionals with these skills fails to keep up, leading to a green skills gap. The shift to sustainable finance brings challenges. For finance professionals, there are:

• A lack of standardised ESG metrics
• Gaps in data quality and availability
• Balancing financial performance with long-term sustainability goals
• Pressure to link ESG goals to financial results
• A learning curve in understanding complex ESG factors and their long-term effects

This skills gap means you might face a steep learning curve as you get to grips with new ESG requirements. Transitioning into a green finance career, or even becoming more aware of the area, needs a well-rounded approach.

• Take courses or certifications in sustainable finance, ESG criteria, and climate risk analysis. The National Careers Service offers free Skills Bootcamps in green skills.
• Stay informed on ESG regulations, reporting frameworks, and industry trends. Read reports from regulators, financial institutions, and consulting firms. Reputable sources include PwC UK's Green Jobs Barometer and the Financial Services Skills Commission.
• Apply your financial expertise to green finance by analysing green bonds, advising on sustainable investments, or integrating ESG considerations into financial decision-making.
• Use ESG data tools such as Bloomberg ESG Data or Refinitiv ESG to integrate sustainability metrics into financial analysis.
• Build your network by joining professional organisations and attending industry events.

Opportunities at the crossroads of finance and ESG

As businesses commit to ESG principles, finance professionals with ESG expertise are indispensable. This shift is transforming hiring trends, redefining traditional finance roles, and opening up new careers. Tomorrow's workforce will consist of finance professionals bridging business goals with sustainability commitments.  If you're ready to stand out in a market that values sustainability as highly as profitability, now is the time to sharpen your ESG knowledge. And embrace the future of finance.