Evironmental, Social, and Governance (ESG) principles are increasingly reshaping the corporate landscape, and India is no exception. Between 2019 and 2023, ESG-related jobs surged by over 223%, marking a significant shift towards sustainable business practices. According to LinkedIn, sustainability roles continue to be among the fastest-growing jobs. For instance, in the US, roles like Environmental Health Safety Manager and Sustainability Analyst are among the top 10 fastest-growing jobs. This shift is driven by global climate concerns, consumer demand for ethical operations, and stricter government regulations.
The rising importance of ESG can be attributed to the fact that it serves as a holistic framework that evaluates a company’s impact on the environment, its social responsibilities, and corporate governance. In India, companies are increasingly prioritising sustainability in their operations to align with global environmental goals.
The government’s focus on reducing emissions and promoting renewable energy is further boosting ESG initiatives. Today, companies are investing heavily in sustainable practices. This is evident from the rapid increase in demand for professionals who can help businesses align with ESG goals, such as reducing carbon footprints, improving waste management, and ensuring ethical labour practices.
Career paths to explore in ESG
The ESG sector in India offers various career opportunities across industries that have been explained by Pratham Barot, CEO & CoFounder, Zell Education. Some of the key roles include:
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- Sustainability manager: These professionals are responsible for creating and managing sustainability programmes within organisations. They ensure compliance with environmental regulations and help reduce the company’s environmental impact.
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- ESG analyst: An ESG analyst evaluates companies’ sustainability efforts and prepares reports for investors who seek responsible investments. Their work helps determine a company’s long-term environmental and financial sustainability.
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- Governance and compliance specialist: These professionals focus on ensuring that companies comply with ESG-related regulations. Their role is crucial in helping businesses adhere to legal standards while maintaining ethical practices.
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- Sustainable finance professional: Creating a sustainable future needs an “all hands on deck” approach and finance plays a critical role in it. It is one function that is instrumental in funding and bringing awareness to issues of sustainability. While there is no single formula to prepare you for a sustainable finance profession, degrees in finance, environmental science, or similar subjects can provide the framework for success in the field of sustainability.
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- ESG reporting and compliance specialist: A specialist in this role ensures that organizations adhere to environmental, social, and governance standards. They prepare ESG reports, ensure regulatory compliance, manage ESG-related risks, and engage with stakeholders to enhance transparency and accountability. Currently, ESG reporting frameworks aren’t streamlined with numerous national/international frameworks. Thus, this role fills in such gaps quite urgently.
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- Impact investment analyst: An impact analyst, from an ESG perspective, evaluates investments for their social and environmental impact alongside financial returns. They conduct due diligence, monitor ESG performance, and communicate outcomes to stakeholders. This role requires strong analytical skills and knowledge of ESG criteria.
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- The sector also attracts professionals with backgrounds in law, finance, environmental sciences, and public policy. The growth in ESG-related jobs has led to competitive salaries, with entry-level positions starting around Rs 4.5 lakh annually, and experienced professionals, especially in managerial roles, earning between Rs 12-30 lakh.
Educational requirements and skills
Professionals entering the ESG space are required to know various fields such as environmental science, economics, finance, and policy-making. The increasing demand for ESG talent is leading to reskilling programmes, allowing professionals from diverse educational backgrounds to transition into this field. Key skills include sustainability reporting, quantitative analysis, and a solid understanding of financial markets.
The ongoing shift toward sustainability is prompting Indian companies to actively seek individuals equipped with these skills, particularly as ESG becomes central to both corporate strategy and investor priorities.
The road ahead for ESG in India
The rapid growth in ESG-related jobs reflects a broader global shift toward responsible business practices. As India continues to promote green policies, such as those encouraging renewable energy and sustainable agriculture, the demand for ESG professionals is expected to rise further. Additionally, India’s commitment to reaching net-zero emissions by 2070 will undoubtedly continue to fuel job creation in this space. The ESG sector presents long-term career opportunities for professionals who are passionate about sustainability and corporate responsibility.
The job market for ESG professionals in India is not only thriving but also evolving, offering a promising future for those seeking meaningful careers that contribute to both environmental protection and corporate success.
Source: India Today (Oct 27, 2024)
Published by: Divya Chopra
