How is ESG (Environmental, Social, Governance) Reporting Creating New Roles?

ESG (Environmental, Social, and Governance) has become a buzzword in the modern business environment and an imperative for business. Investors, regulators, and customers are now putting pressure on the companies not only to make profits but also to practice responsible business that is long-term, sustainable. This change has not only altered the corporate strategy, but this has also seen a flood of new career opportunities for finance and business professionals.

Why has ESG Reporting Become Important? 

The reason why ESG reporting has become a significant part of things, it entails the quantification and reporting of the performance of a company in its environmental, social, and governance practices. Companies are now obliged to release transparent ESG reports with the emergence of global platforms such as GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board, and IFRS Sustainability Standards.

Some of the main reasons why ESG reporting is becoming more popular are:

• Investor Demand: Large institutional investors are considering the ESG scores in their decision-making.
• Regulatory Push: Governments all over the world are enforcing sustainability disclosures.
• Customer Expectations: Customers are more and more attracted to brands that are socially responsible and environmentally friendly.
• Risk Management: The ESG practices will minimize reputational, environmental, and compliance risks.

New Roles Emergence Due to ESG Reporting

ESG is not merely a compliance factor--it is an innovation, reputation, and career advancement driver. To the professionals, the acquisition of ESG-related skills can now provide access to future-proofing opportunities in finance, strategy, and leadership.

ESG Analysts/ Specialists

These experts examine ESG data, compare performance, and compose reports that can be presented on a global level. They collaborate with the finance departments in order to connect business performance and ESG results.

Sustainability Accountants

Non-financial measurements that are now anticipated to be measured by the accountants include carbon footprint, energy consumption, and diversity ratios. This has spawned professional positions that are both accounting and sustainability.

ESG Compliance Officers

Increased regulation means that businesses are contracting professionals to make sure their ESG reporting is in line with both local and global requirements.

Sustainable Investment Professionals

Banks and investment companies are currently in need of individuals who have expertise in green finance, ESG investments, and climate risk. This is establishing a niche in sustainable financial services.

Data and Technology ESG Roles

New data scientist, ESG software expert, and technology advisor positions have been created since ESG reporting can only be conducted with massive data gathering and analysis.

Chief Sustainability Officers (CSOs)

At the top tier, most organizations are establishing executive positions to manage ESG strategies, so that they become part of business objectives.

Preparation of ESG Careers by Professionals

• Earn Certifications: ESG reporting, sustainability accounting, and green finance (through CFA Institute, ACCA, or IFRS Foundation) are all strongly desired.
• Gain Cross-Functional Skills: Finance professionals are required to develop skills in environmental science, social responsibility, and corporate law.
• Be Current with Standards: Professionals have an advantage in knowing the current sustainability disclosure guidelines in the world.
• Knowledge of Technology: A strong knowledge of ESG reporting software, AI-based dashboards, and data analytics software is a significant strength.

 

Did you know? The 2024 Global Investor Survey by PwC found that more than 80 percent of investors said that ESG reporting is just as important as financial reporting in their judgment of business resilience in the long term.

See Also 

FAQs on ESG Reporting

In India and the world, is ESG reporting obligatory?

The top listed companies in India must provide ESG-related information in the framework of the Business Responsibility and Sustainability Report (BRSR) introduced by SEBI. In other parts of the world, such as the EU and the UK, ESG disclosure has been enforced on big companies.

Are ESG skills essential among finance professionals?

Yes. Finance professionals form the core of ESG as they help to connect sustainability information with financial results, operate disclosures, and comply with them.

What are some of the certifications that can help in an ESG career?

Employers are now giving more recognition to certifications like the CFA ESG Certificate, ACCA Sustainability Reporting, and IFRS Sustainability Standards training.