ESG: An increasingly popular profile
Environmental, Social & Governance (ESG) refers to the factors that make a company sustainable through its social, environmental and governance commitment.
The Environmental criteria of the ESG strategy include business activities that have a positive impact on the environment. For example, actions to reduce waste generation, pollution or greenhouse gas emissions.
Social criteria are actions related to working conditions, respect for human rights; the promotion and protection of diversity; a healthy environment for employees; and, due to the COVID, the measurement of the employee’s mental health footprint.
And among the criteria for Good Governance, we find everything related to the organisations’ corporate governance, their corporate quality, transparency, their culture and their management processes…
After 25 years in the Executive Search field, I have had the opportunity to see from time to time, how the labour market turned towards a certain profile, with a certain lack of experience, generating tensions when it comes to finding and attracting good professionals in these areas.
This phenomenon is usually observed in technological profiles, when a new product or software comes out – we already experienced it at the end of the 90s, when there was a lack of SAP experts; but it has also been seen with Oil & Gas Engineers, who we had to look for in Venezuela; with legislative changes (such as the LPRL) and the need to have Occupational Risk Prevention Technicians; or more recently with Digital, CRM, Cyber Security and Compliance profiles…
Now we are faced with the need to look for experienced ESG Directors, who can define and implement ESG strategies, or do Due Diligence and then apply it in their companies, or work in Consultancy Firms and advise the rest of the companies.
As usual, the first companies to create sustainability and climate change divisions were the “big four”, about 10 years ago. They were small departments, with one Partner and 10-15 professionals. Today, there are more than 70!
But, due to the recruitment needs of end-clients for ESG Directors and Heads of ESG, many of the experienced middle managers in the “big four” have disappeared because they have accepted good offers in other organisations.
Today, fund managers, pension funds and insurance companies are subjecting their investments to sustainability criteria. Bloomberg forecasts that ESG assets will grow and that by 2025 they will account for a third of all global assets under management. In fact, more than 80% of IBEX 35 companies already have positions that measure corporate sustainability.
With this scenario, the war for talent in the search for ESG Advisors, Directors and Managers will certainly continue.
What is the profile of an ESG Director in Spain?
- 8-10 years of experience in ESG (sustainability consultancy projects, climate risk modelling, Sustainable Finance, environmental due diligence, carbon footprint, etc.).
- Degree in Engineering, Environmental Sciences, Business Administration, among others.
- Master’s degree in Sustainability
- High level of English.
- Knowledge of: climate risk analysis and modelling, Sustainable Finance, sustainability consultancy projects, European ESG regulation (e.g. European taxonomy), ESG reporting models (GRI, TCFD, WBCSD) and rating (S&P DJSI, CDP, Sustainalytics).
- Familiar with sustainability issues, climate change.
