TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
TheFinanceStory
No Result
View All Result
  • Login
  • Register
Book 1:1 session with industry experts!
  TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
The finance story
No Result
View All Result
  • Login
  • Register
Book 1:1 session with industry experts!
The Finance Story
No Result
View All Result

ESG everywhere! Feeling overwhelmed by this hot topic? Why Finance Professionals should gear up now

ESG is a hot topic in the corporate and VC ecosystems and learning about it is no longer a choice for Finance Professionals. We decode everything surrounding the topic to get you up to speed.

Preeti Mondal by Preeti Mondal
Published date: 2nd November, 2023
Last edited date: 8th November, 2023
SHARE (0)
ESG everywhere! Feeling overwhelmed by this hot topic? Why Finance Professionals should gear up now
Share on FacebookShare on Twitter

If I had a dollar for every time I heard ESG during The Finance Story interviews, I’d be a millionaire.

Jokes aside, ESG factors are one of the hot topics in the Corporate, and even in the VC ecosystem. But embracing ESG is no longer a choice, it’s a necessity.

Why are investors increasingly considering ESG performance when making decisions, and consumers are favoring brands that align with their values?

We will decode everything surrounding the topic to get you up to speed.

What is ESG?

ESG stands for Environmental, Social, and Governance.

It is a framework for assessing a company’s performance on non-financial factors, such as its environmental impact, its treatment of employees and customers, and its corporate governance practices.

Stakeholders, such as investors, consumers, and NGOs, believe that companies with strong ESG performance are more likely to be successful in the long term, and they also want to invest in companies that are making a positive impact on the world.

Here are some examples of ESG factors:

  • Environmental: Greenhouse gas emissions, deforestation, water pollution, waste management.
  • Social: Employee diversity and inclusion, human rights, labor practices.
  • Governance: Shareholder rights, board composition, executive compensation, auditor independence.

There is a growing focus on ESG in industries such as Aerospace & Defense, Financial Services, Aviation, Automotive, Health and Social Care, Retail & Consumer, and Technology.

History of ESG and when the term picked up pace

The history of ESG investing can be traced back to the early 1960s when investors began to exclude stocks from their portfolios based on ethical or social concerns.

For example, some investors divested from companies that were involved in the tobacco industry.

In the 1990s, there was a growing interest in socially responsible investing (SRI), which considered a wider range of factors, such as environmental impact, labor practices, and corporate governance.

SRI investors also began to focus on positive impact investing, which aims to invest in companies that are making a positive difference in the world.

ESG investing started to pick up pace in the early 2000s, but it has taken off in recent years.

According to the Global Sustainable Investment Alliance, ESG assets hit $35.3 trillion in 2020, 36% of all assets under management, and in 2021, Bloomberg Intelligence estimated that this number would rise to $50 trillion by 2025.

This growth is due to several factors, including:

  • Increased awareness of sustainability and social responsibility issues.
  • Institutional investors’ demand for ESG products.
  • Regulatory changes in some countries have made it easier for investors to integrate ESG factors into their investment decisions. For example, in the European Union, the Sustainable Finance Disclosure Regulation (SFDR) requires asset managers and investment advisors to disclose how they integrate ESG factors into their investment processes and products.

Why Finance Professionals should gear up

ESG reporting skills are growing in demand, where one has to look at non-financial factors that can have a material impact on a company’s financial performance and long-term value.

ESG reporting is a type of corporate disclosure that details the environmental, social and governance (ESG) promises, efforts, and progress of an organization.

Although organizations have long had to report on financial and operational performance attributes, ESG reporting is a newer phenomenon that gained traction in the early 2000s.

A blog by KPMG mentions, that the EU’s Corporate Sustainability Reporting Directive (CSRD) is transforming ESG reporting. Starting in 2024, almost 50,000 companies will be subject to mandatory sustainability reporting, including non-EU companies that have subsidiaries operating within the EU or are listed on EU-regulated markets.

As the first CSRD reports are expected in 2025, for companies with a year ending on 31 December 2024, time is running out. Companies must ensure they can deliver accurate information from various departments within the organization to meet the new assurance requirements.

In April 2022, the UK enacted two mandatory ESG disclosure laws.

These are The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022.

Even UAE’s President, his Highness Sheikh Mohamed bin Zayed Al Nahyan has declared 2023 as the “Year of Sustainability.”

The “Year of Sustainability” will encompass numerous initiatives, activities, and events rooted in the UAE’s enduring principles of sustainability, honoring the legacy of its founder, the late Sheikh Zayed bin Sultan Al Nahyan.

It will particularly emphasize environmental sustainability, aiming to inspire a collective effort towards sustainable practices nationwide in alignment with the UAE’s national strategy. This initiative unites all residents of the UAE in pursuit of a prosperous future.

During several interviews conducted by The Finance Story many Finance Professionals have emphasized the importance of understanding ESG.  

Kush Vijay – Audit assistant manager at EY Oceania Sydney

“Sustainability is currently one of the most promising and potentially high-demand sectors worldwide. Every Big 4 firm and Big 10 firms globally are actively recruiting for positions in ESG and sustainability. As a finance professional, you must obtain a diploma in sustainability.

If I were 21 today, I would have reconsidered pursuing chartered accountancy. Alternatively, if I had already embarked on the path of CA, I would have certainly complemented it with a course in sustainability.”

Ayush Laddha –  Senior Manager – Technical Accounting at The Ardonagh Group, London

“Finance is a constantly evolving field, with new developments emerging every year. The recent rise of ESG and sustainability reporting exemplifies this dynamic landscape. Staying current and agile is crucial because new changes continually arise. Recruiters and employers in the UK, Australia, and the US assess your ability to adapt and keep up-to-date with these developments.”

Vijay Ojha – Group Company Secretary at Sharaf Group Dubai

“In the present landscape, with increasing emphasis on Environmental, Social, and Governance (ESG) considerations, the demand for Company Secretaries is expected to rise even further due to their expertise in compliance matters.”

How to learn about ESG?

Now that you understand the importance of this topic you may ask, “How do I start learning ESG? What course should I pursue?”

To be honest, it entirely depends on your industry, role, company, and your convenience.

So, if you want to take the next step in amplifying your resume a bit more, here are some ESG-related courses both offline and online, that will teach you about the fundamentals.

  1. Fundamentals of Sustainability Accounting (FSA) Credential by SASB Standards – Now part of IFRS Foundation
  2. Certificate in ESG Investing by CFA Institute
  3. ESG Certificate Program by CFI
  4. Environmental, Social and Governance Leadership: A Pathway to Business Sustainability by University of Cambridge
  5. Sustainable Development MSc (online) by the University of Sussex

Wrapping up…

ESG investing is becoming increasingly popular, as investors become more aware of the importance of non-financial factors in corporate performance.

In 2022, ESG assets under management reached $35.3 trillion globally.

The future of ESG investing and the subsequent career opportunities look bright.

“If any professional asked me what are the big job opportunities today, that are not just limited to finance, I would say it is the space of data analytics and visualization, AI, Cyber Security, and ESG.” says Raajeev Batra – Partner & Head Private Enterprise, KPMG Lower Gulf

Preeti Mondal

Preeti Mondal

Recommended for you

EY Director quit after spotting new & bigger opportunities outside Big 4
Big 4

EY Director quit after spotting new & bigger opportunities outside Big 4

26th February, 2025 | 7 mins read
200,000 Global Bank Jobs May Be Slashed By Artificial Intelligence
Careers in Finance

200,000 Global Bank Jobs May Be Slashed By Artificial Intelligence

11th January, 2025 | 5 mins read
GT Bharat COO shares his journey from a team of 50 to 10k and how firms can prepare for the opportunity that lies ahead in India.
Chief Operating Officer

This CA took a pay cut & joined Grant Thornton when it was a team of 50, now they’re 10k+

18th December, 2024 | 9 mins read
Sunil Singhania Abakkus Private Equity Fund
Asset Management

Abakkus Asset Manager on raising ₹2,400 crores to unlock India’s Private Equity opportunities

18th December, 2024 | 7 mins read
CFO of VC fund that raised $300 million
Corporate Career

Ex-Big 4 Auditor to CFO of a $600Mn+ VC Fund

12th December, 2024 | 8 mins read
UAE recruitment firm Cooper Fitch predicts talent surplus, stagnant salary
Corporate Career

Dubai’s salaries fall? Talent surge in HR, finance, accounting professionals

9th December, 2024 | 5 mins read
Next Post
This Finance Professional left his corporate job to start an Outsourced CFO firm in his 40s: Here are his learnings

This CFO quit the corporate world to enter the Outsourced CFO space. Here are his learnings.

Start conversation Cancel reply

Your email address will not be published. Required fields are marked *

1:1 career advice platform

  • Manager

    Investment Banking (Front Office) at HDFC Bank.

  • Finance Director

    at Procter & Gamble (P&G)

  • Strategic Program & Ops Manager

    Risk and Internal Audit at Accenture

  • Vice President

    at Alcazar Capital

  • Manager ACR

    Accounting, Compliance and Reporting at EY

  • Senior Accountant

    at BDO Canada LLP

  • Regional Financial Coordinator and Project Manager

    at TotalEnergies

  • Accounts Manager

    at Sterling Perfumes Industries LLC (Fakhruddin Holdings)

BOOK 1:1 CALL

1:1 career advice platform

  • Manager ACR

    Accounting, Compliance and Reporting at EY

  • Senior Accountant

    at BDO Canada LLP

  • Regional Financial Coordinator and Project Manager

    at TotalEnergies

  • Accounts Manager

    at Sterling Perfumes Industries LLC (Fakhruddin Holdings)

BOOK 1:1 CALL
The Finance Story

The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

Quick Links

  • Finance
  • Partners
  • Privacy and Policy
  • Terms of use

Follow us

  • /TheFinanceStory
  • @TheFinanceStory
  • /TheFinanceStory
  • @thefinancestory_com
  • TheFinanceStory

© 2022. The Finance Story. All Rights Reserved.

No Result
View All Result
  • TFS Gulf
  • Entrepreneur Story
  • Finance Leaders
  • Videos
  • Login
  • Sign Up

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize your experience. By continuing to visit this website you agree to our use of cookies.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Book 1:1 call with industry expert