ESG (Environmental, Social, and Governance) investing has become a pivotal approach in modern investment strategies, and offers a rewarding career with positive societal impact.
To help you better understand the skills and requirements of an ESG role, we asked Shali Lingaretnam, Head of Investment Stewardship at Victoria Funds Management Corporation (VFMC), to share her insights and recommendations. We’ve also also provided plenty of information below about the skills required and how to acquire them.
What is ESG Investing?
ESG investing considers not only financial returns but also the environmental, social, and governance factors that influence a company’s performance and reputation. This approach promotes sustainable and ethical practices while aiming to generate long-term value for investors.
Key skills required and developed
- Analytical thinking: ESG investing requires the ability to assess and analyse non-financial data. You’ll develop skills in evaluating how environmental practices, social responsibilities, and governance structures influence investment outcomes.
- Research proficiency: Deep research skills are crucial as you’ll need to gather and interpret data on sustainability practices, corporate ethics, and regulatory compliance.
- Critical judgment: Making informed decisions about which companies align with ESG criteria involves critical judgment. This skill is essential in balancing the pursuit of financial returns with ethical considerations.
- Communication skills: Effectively communicating the value of ESG factors to stakeholders is key. You’ll need to articulate how ESG considerations can enhance long-term portfolio performance and mitigate risks.
- Strategic vision: ESG investing involves forward-thinking and strategic vision, focusing on how current trends in sustainability and corporate responsibility will shape the future investment landscape.
How to upskill and learn more
- **Shali's #1 tip** Pursue relevant education: Consider certifications like the ESG Investing Certification from CFA Institute, which provides foundational knowledge in ESG principles. Courses from PRI Academy also offer specialised training to deepen your expertise in ESG investing.
- Expand your knowledge: Stay informed about ESG investing by reading up on the latest research and case studies, like Moningstar’s ESG Investing News and Analysis. Understanding how ESG factors influence investment decisions will give you a competitive edge. Check out this article for more great investment news sources.
- Network with experts: Connecting with industry professionals like Shali Lingaretnam can provide valuable insights and mentorship. Be brave and reach out with your questions on how to pursue this career path.
ESG investing is not only a growing field but also a meaningful one. By pursuing a career in ESG, you’ll be at the forefront of a movement that’s redefining the investment landscape, making a tangible impact on the world while building a successful career.
If you have any further questions, reach out anytime for a chat.
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