Climate change and the drive towards net zero has put sustainability on the map like never before. Corporates are having to address sustainability/ESG not just because of mandatory requirements, but also due to growing demand from customers and investors and increasingly; employees and prospective employees. A recent survey by Deloitte found 69% of adults surveyed want their companies to invest in sustainability efforts, including reducing carbon, using renewable energy and reducing waste 1.
It goes without saying that having the right resource in place to navigate ESG requirements such as CSRD, SFDR, TCFD along with auditing and reporting is essential. We’ve seen an uptick in recruitment for ESG analysts and managers by corporates and consulting firms looking to meet this demand. ERM increased their FTE workforce by 1000 in 2023 (approx. 25% from acquisitions) 2 and several of the large accounting firms are investing in hiring resource and developing and/or acquiring technology to meet the increasing ESG demands.
Currently, approximately 60% of roles advertised by specialist sustainability/ESG recruiters are at the analyst/manager level 3. This surge in recruitment is a good thing, but corporates shouldn’t just stop there. Their sustainability actions need to be supported by a strategy, systems and governance structures. This is where corporates start to benefit from having a Chief Sustainability Officer or Head of Sustainability. Not only can they drive the sustainability agenda, ensure it aligns with corporate strategy and gain the buy in of the leadership team but can start to push the agenda, moving beyond minimising impacts and risk management (which are still very important) and more towards opportunity creation. Developing new markets, ways of working, products and services that not only benefit the sustainability agenda but create value and generate positive returns.
We anticipate the demand for these types of roles to increase, along with coaching and mentoring services to support leaders as they engage in new ways of thinking about sustainability and what it can offer beyond risk mitigation and management.
We’ve still got a way to go, and it may take some time before we see the role of Chief Sustainability Officer and CEO merging, but we are definitely heading in the right direction.
1 https://www2.deloitte.com/xe/en/insights/environmental-social-governance/importance-of-sustainability-to-employees.html/#:~:text=Among%20employed%20adults%20surveyed%20by,renewable%20energy,%20and%20reducing%20waste
2 https://www.erm.com/about/company/info/financial-overview/
3 Oxford HR research
Caroline joined Oxford HR in 2024 as an Advisor on Sustainability/ESG. Caroline has over 25 year’s experience in the ESG space, working with companies and organisations to improve their ESG and overall business performance. She has worked with leading consulting firms to advise clients on ESG strategy and management globally and has a particular interest in how ESG can be used to enhance and improve company performance and profitability.
