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Industry Spotlights · 2 of 3 Share on LinkedIn

Industry overview

Finance acts as the capital engine for the global economy. Integrating sustainability is no longer just about ‘doing good’; it is fundamental to managing risk and ensuring continued financial growth.

Sustainable investing aims to generate measurable environmental, social, and governance (ESG) impacts alongside competitive financial returns.

Driven by shifting regulatory frameworks, climate transition risks, and fiduciary duties, assets managed with an ESG focus are projected to surpass $40 trillion globally. From negative screening (excluding fossil fuels or arms) to investing in green and sustainability-linked bonds, financial institutions rely on ratings and analytics from providers like MSCI, Bloomberg, and Morningstar to allocate capital toward sustainable development. As a result, demand for professionals who understand both financial mechanics and ESG frameworks has surged across the market.

How sub-sectors within finance engage with sustainability

  1. Asset Management & Wealth FundsConstructing public-market equity and fixed-income portfolios using ESG integration, thematic climate funds, and active shareholder voting to drive corporate decarbonisation.
  2. Investment & Commercial BankingStructuring green debt, sustainability-linked loans, and underwriting green bonds to fund large-scale renewable infrastructure, energy efficiency projects, and corporate transitions.
  3. Private Equity & Venture CapitalDeploying direct, long-term capital into high-growth climate-tech start-ups, circular businesses, and taking controlling stakes in traditional companies to decarbonise their operations before exit.
  4. Development Finance & Multilateral Bankse.g. IFC, EIBProviding blended finance, concessional loans, and risk guarantees to mobilize private investment toward climate resilience and social infrastructure in emerging markets.
  5. ESG Data, Ratings & Researche.g. MSCI, Morningstar/SustainalyticsEvaluating corporate disclosures, calculating carbon intensity, and issuing independent ratings that benchmark company performance for institutional investors.

Case study

Sustainable Investment Analyst at a private equity fund

What does the day to day look like?

My day-to-day involves working in a fast-paced environment involving working with a range of different people from portfolio managers, asset managers, research teams, to other internal and external stakeholders.

ESG due diligence

For example, I support asset managers in assessing a potential project / asset’s ESG performance based on a predefined criteria. This criteria may be driven by regulatory obligations (such as requirements to being a “Sustainability Impact” fund under the UK Sustainable Disclosure Requirements, or to being aligned to an activity classified under the EU Taxonomy) or internal investment commitments (the expectations held by the investors of the asset managers). When undergoing due diligence (assessing a potential project for investment), we would work with the key parties involved in the project to understand the project’s adherence to the asset managers’ commitments/obligations from pre-investment all the way through to exit.

Strategy implementation

Strategy implementation encompasses a lot of services. An example would be if a company would like to raise a fund in the UK and Europe that would classify as “sustainable” under a number of EU and UK ESG regulations. We would assist in shaping the fund to ensure that when the fund is launched, it would adhere to these requirements and avoid any risk of greenwashing. This may include including ESG metrics and indicators into asset allocation strategy, ensuring robust engagement policies with investee companies, adherence to social safeguards like human rights and more.

Another example would be if an existing fund or fund manager is looking to integrate ESG considerations into their traditional operational departments (e.g. risk management teams, deals teams, etc.). This would include valuing assets’ exposure to climate-related risks and factoring them into risk appetites and investment decisions, improvements to the firm’s governance structures, and so forth. Strategy implementation is a great way to learn how to translate ambitions into practical actions.

Sector-specific question

Would you recommend getting a certification for ESG investing?

Certification helps you build your credentials and confidence to speak about particular topics relating to ESG investing. Some people in the finance sector go for a certification to improve their reputation. Ultimately, companies really are looking for self-starters who are able to pair a good understanding of ESG and sustainability with financial knowledge.

I would also add that a background in finance is very valuable. Pairing a financial background with good understanding of ESG and sustainability as a whole is key to excelling in a career in this rapidly emerging field.

Advice for young people looking to enter this field

  • Be curious: keep reading and speaking to people about the evolving space of ESG investing. It is a rapidly changing field so embrace the journey!
  • Stay on top of the latest trends in the space, such as mandatory and voluntary sustainability disclosures and what this means for different companies.
  • Come to interviews with different perspectives about financial sector implications for various ESG related regulations.
  • Understand ESG ratings and rankings, particularly where their limitations are and what the landscape looks like for different industries. Some, such as renewable energy, are growing very fast.
  • Being able to communicate effectively is key: you can showcase that in the interview by giving examples of when you tailored communication and presentation to different audiences.

Some of the advice in this case study has been taken from a SustainaPod podcast episode.

Listen to the full episode