FINANCE & SUSTAINABILITY
How Will Sustainability Help with Careers in This Major?
As a finance major, knowing how sustainability and environmental, social and governance (ESG) factors connect to finance can set you apart. While sustainability grows in importance, demand for financial professionals with this essential knowledge will grow. Specifically, for those looking to become involved investing management or advising, knowledge of sustainability/ESG can help you better meet clients’ needs and expectations. Finance professionals involved in professional services could also become involved in sustainable/ESG investing.
On the other hand, corporate finance professionals will need to know how sustainability information should be incorporated into project valuations, which can lead to higher returns on investment. In addition, as investors begin to care more about sustainability, corporate finance professionals will need to learn how to make decisions that these sustainability-focused investors will value.
Sustainability-Focused Career Pathways
While the field of finance is not situated to provide an abundance of entry-level sustainability/ESG jobs, specializing and learning now could benefit you in the long run. Below are some examples of different sustainable finance careers pathways (Source: Forbes, Smeal Business Career Center).
Corporate Finance
Some corporations are seeking out candidates to fill internal sustainability roles. Typical responsibilities include assessing and analyzing the environmental and social impacts of investments, and integrating ESG metrics into investment decisions. Often included is incorporating ESG into risk management, operations, reporting and stakeholder engagement.
Professional Services & Consulting
The traditional roles of investment banking, sales and trading (S&T), and wealth/asset management all have sustainability/ESG counterparts. Consulting services can include advising clients on sustainable finance solutions; developing consulting solutions and products and conducting market research and quantitative and qualitative analyses to create reports and presentation materials.
Standard Setters
As we have said, there is a wide array of sustainable/ESG standard setting organizations and agencies. They all hire financial professionals who help to expand and improve sources of ESG data, analyze and assess data, and some will also offer services to companies although setting the standards and then working for the companies one is assessing brings up obvious conflicts of interest.
ESG Data Providers
There are many organizations dedicated to research and development of ESG metrics, standards, and ratings. Responsibilities can include research into companies to identify ESG risk factors, the development and validation of ESG data, and can even include client-facing tasks like building client portal and acquiring new users/customers.
Sustainable/ESG/Impact Investing
Institutional investors to venture funds are increasingly building sustainable/ESG finance practices, departments and teams. Responsibilities for employees can include business valuation, ESG data and materiality analysis, developing client materials, answering new research questions, and monitoring the changing field of sustainable investing.
Learn More About How to Land and Build a Sustainability Career
If reading about these sustainability career options sparks your interest, check out our resources on how to talk about sustainability with recruiters, as well as career fair tips and sustainability career searches.
ADVANCE YOUR KNOWLEDGE OF FINANCE AND SUSTAINABILITY
Learn what sustainable finance is all about and its importance
Learn the important things to know in this field
Learn how sustainability fits into your courses
Learn how sustainability relates to your career