Career Overview
An Environmental Social Governance (ESG) Analyst is a professional who assesses and evaluates the sustainability practices of organizations in relation to environmental, social, and governance criteria. ESG Analysts play a crucial role in helping companies, investors, and stakeholders understand how a company’s operations impact the environment, society, and corporate governance. They analyze data, create reports, and provide insights that influence investment decisions, company policies, and sustainability strategies. ESG Analysts are highly valued in fields like finance, consulting, and corporate strategy, as they help organizations navigate the growing emphasis on sustainability and responsible business practices.
Pathway to Becoming an ESG Analyst
High School Education (10+2):
Stream Selection: Science, Commerce, or Humanities, depending on interest.
Recommended Subjects: Economics, Business Studies, Environmental Science, Mathematics, and Sociology.
Undergraduate Degree:
Bachelor’s Degree in Business Administration, Finance, Environmental Science, Economics, or related fields.
Duration: 3-4 years.
Key Institutes: Delhi University, St. Xavier’s College, Mumbai, or international institutions like Harvard University or the London School of Economics.
Postgraduate Degree:
Master’s Degree in Sustainability Management, Environmental Economics, Finance, or Business Administration (MBA) with a focus on sustainability or CSR (Corporate Social Responsibility).
Duration: 2 years.
Recommended Institutes: Indian Institute of Management (IIM), Ahmedabad; Tata Institute of Social Sciences (TISS), Mumbai; University of Oxford, UK; or Yale School of Management, USA.
Certifications and Diplomas:
Obtain specialized certifications such as the Certified ESG Analyst (CESGA) by the European Federation of Financial Analysts Societies (EFFAS) or the SASB Fundamentals of Sustainability Accounting (FSA).
Other options include the Global Reporting Initiative (GRI) Standards Certification or ISO 14001 Environmental Management System Certification.
Professional Experience:
Gain experience through internships or entry-level roles such as ESG Research Assistant or Sustainability Analyst in finance, consulting, or corporate firms.
Doctorate Degree (Optional):
PhD in Sustainability, Environmental Economics, or Business Administration for advanced research, academic, or senior leadership roles.
Duration: 3-5 years.
Work Description
ESG Analysts are involved in assessing an organization’s performance across environmental, social, and governance dimensions. Their work involves gathering data, conducting research, and preparing reports to inform stakeholders, investors, and company management about ESG-related risks and opportunities. They may work with financial institutions, corporate entities, consulting firms, or non-profits.
Roles and Responsibilities
ESG Research and Analysis:
Conduct research to evaluate a company’s ESG performance and compliance with sustainability standards.
Analyze data related to environmental impact, social responsibility, and governance practices.
ESG Reporting and Documentation:
Prepare ESG reports, disclosures, and presentations based on industry standards like GRI, SASB, and the United Nations Sustainable Development Goals (SDGs).
Ensure transparency and accuracy in reporting ESG metrics.
Data Collection and Interpretation:
Gather and interpret data from various sources, such as sustainability reports, financial statements, and news articles.
Utilize quantitative and qualitative methods to assess ESG performance.
Investment and Risk Analysis:
Provide insights on ESG risks and opportunities to guide investment decisions.
Collaborate with financial analysts to incorporate ESG considerations into financial models and investment strategies.
Stakeholder Engagement:
Engage with stakeholders, including company management, investors, and NGOs, to discuss ESG performance and strategies.
Participate in sustainability meetings, conferences, and workshops.
Policy and Strategy Development:
Assist companies in developing ESG policies, sustainability strategies, and initiatives to enhance their ESG ratings.
Advise on best practices for aligning with global sustainability frameworks and regulations.
Required Skills
Technical Skills:
Proficiency in ESG reporting standards like GRI, SASB, and CDP (Carbon Disclosure Project).
Knowledge of financial modeling and analysis tools.
Expertise in data analysis and visualization using software like Excel, R, Python, or Tableau.
Soft Skills:
Strong analytical and critical thinking abilities.
Excellent communication and report-writing skills.
Project management and organizational skills.
Problem-solving and strategic thinking abilities.
Ability to work independently and as part of a multidisciplinary team.
Career Navigation
Entry-Level Roles: Start as an ESG Research Analyst, Sustainability Analyst, or Corporate Social Responsibility (CSR) Assistant.
Mid-Level Roles: Advance to positions such as ESG Analyst, ESG Consultant, or Sustainability Manager.
Senior-Level Roles: Transition to roles like Senior ESG Analyst, ESG Director, or Head of Sustainability.
Specializations: Focus on areas like impact investing, sustainable finance, corporate governance, or environmental policy.
Leadership Roles: With significant experience, move into roles like Chief Sustainability Officer, Director of ESG, or Sustainability Consultant.
Career Opportunities
Financial Institutions: Work as an ESG Analyst or Consultant in investment banks, asset management firms, or insurance companies.
Consulting Firms: Provide ESG consulting services to companies looking to enhance their sustainability practices.
Corporate Sector: Serve as an ESG Manager, Sustainability Officer, or CSR Manager within a company.
Government and Public Sector: Advise on sustainability policies, regulations, and programs.
Non-Profit and International Organizations: Engage in advocacy, research, and project management for sustainability initiatives.
Academic and Research Institutions: Conduct research or teach sustainability, environmental economics, or business ethics.
Average Salary
India:
Entry-Level: ₹4,50,000 - ₹6,50,000 per annum.
Mid-Level: ₹8,00,000 - ₹12,00,000 per annum.
Senior-Level: ₹15,00,000 - ₹25,00,000 per annum.
International:
Entry-Level: $50,000 - $65,000 per annum.
Mid-Level: $70,000 - $95,000 per annum.
Senior-Level: $100,000 - $150,000 per annum.
Job Options
ESG Analyst: Analyze a company’s ESG performance and provide insights for investment decisions.
Sustainability Consultant: Advise companies on improving sustainability practices and aligning with ESG frameworks.
Corporate Social Responsibility (CSR) Manager: Manage and implement CSR initiatives within a company.
Sustainable Finance Specialist: Work in financial institutions to integrate ESG considerations into investment decisions.
ESG Researcher: Conduct research on sustainability trends, ESG risks, and policy impacts.
Impact Investing Analyst: Assess and invest in companies or projects that generate positive social and environmental impact.
Sustainability Data Analyst: Analyze ESG data and trends to inform strategic decisions and sustainability reporting.