ESG Investment Professionals Salary Guide Financial Services 2022

There has been a significant lift in demand for Environmental, Social and Governance (ESG) Investment professionals across our clients in funds management, superannuation, asset consulting and policy and advocacy.

The rise of awareness across society for ESG issues is having a broad impact and is permeating through to the corporate world. This trend has been accelerating and has forced businesses to consider the impacts of their investment decisions.

ESG roles can vary greatly in scope and depth depending on a number of factors. In some businesses this has taken on the form of teams solely dedicated to ESG research, while others have taken a broader stance that ESG issue should be a consideration for all employees.

ESG Positions and Salary

Investment Analyst / Consultant – ESG Focus

There has been a trend amongst some super funds and fund managers to set up dedicated in-house ESG research teams rather than to outsource to specialist providers. We have seen these organisations grow their ESG capabilities to drive better investment outcomes. These structural changes are providing opportunities for those who are looking to develop their career in the ESG research space.

ESG research roles can have a broad scope that varies depending on size and complexity of investment teams. It can be as simple as developing basic ethical screens, and proxy voting through to undertaking in-depth research into companies’ current operations and strategy to assess how this may affect profitability and sustainability.

Starting Out

One of the main ways to get into an ESG investment research role is to commence within broader investment research and move towards specialising in ESG as this can provide a sound base of knowledge on how to evaluate companies and investment opportunities.

There are now many courses that can be undertaken that cover ESG topics as well as investment research allowing people to focus their career within responsible investment research from the beginning.

Some funds are usually willing to take someone with general investment research experience over pure ESG experience. Once established, one may choose to focus more on a single area of environmental, social or governance or remain a generalist.

As one becomes more experienced, there is the potential to move up into more senior positions which may include leading teams, advocating for ESG issues within industry or to even run an ethical investment fund.

ESG Analyst / Consultant

These roles share many similarities to Investment Analyst roles; however, they tend to focus more on breaking down and highlighting ESG issues within investments or companies rather than having a focus on the financial metrics.

Many people are finding that they can have a greater impact influencing businesses from within rather than through governmental policy.

Organisations in this space prefer those who have experience within investment research as it can help to provide a broad understanding of how companies operate as well as ESG principles.

Policy and Advocacy Analyst

These specialised roles usually work as an intermediary between government and industry providing insights and analysis into government ESG policies. There is usually a goal to drive cultural change and highlight potential ESG problem areas within companies and industries.

Employers generally look for those with policy writing experience which can come from having worked in government or a background in law.

Research undertaken is used to influence companies and super funds on best practice ESG policies.

Qualifications Requirements

ESG investment research professionals are expected to have tertiary qualifications in commerce, finance, law, economics, environment/social studies, or associated fields and post-graduate qualifications are highly regarded.

Candidates who are most in demand are those that have a combination of commercial and ESG qualifications and experience. This allows candidates to have a full grasp across corporate and ESG practices.

For those who look to specialise with investment management and research typically, these candidates are expected to be CFA certified or hold a Master of Applied Finance.

Opportunities in a Talent Scarce Market

The ESG investment research space is an exciting and rapidly evolving industry which has seen a significant increase in demand for talented professionals.

ESG issues are rising in importance and prominence within society and we will likely see significant expansion and growth continue.

For further information on ESG roles in funds management, superannuation and asset consulting, please contact Simon Gvalda on 0412 122 593 or simon@kaizenrecruitment.com.au.

 

Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.

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