Environmental, Social, and Governance (ESG) principles are transforming the corporate landscape in India. Between 2019 and 2023, jobs related to ESG surged by over 223%, indicating a significant shift towards sustainable business practices. According to LinkedIn, roles in sustainability are among the fastest-growing jobs, with positions like Environmental Health Safety Manager and Sustainability Analyst ranking in the top 10 in the U.S. This change is driven by global climate concerns, consumer demand for ethical operations, and stricter government regulations.
The rising significance of ESG stems from its comprehensive framework that evaluates a company’s environmental impact, social responsibilities, and governance practices. In India, companies are prioritizing sustainability to align with global environmental goals, driven by the government’s focus on reducing emissions and promoting renewable energy. As a result, businesses are investing heavily in sustainable practices, leading to a growing demand for professionals who can help them achieve their ESG objectives.
Career Paths in ESG
The ESG sector in India presents various career opportunities across multiple industries, as outlined by Pratham Barot, CEO and Co-Founder of Zell Education. Key roles include:
- Sustainability Manager: Responsible for creating and managing sustainability programs within organizations, ensuring compliance with environmental regulations and reducing the company’s environmental impact.
- ESG Analyst: Evaluates companies’ sustainability efforts and prepares reports for investors seeking responsible investments. Their analyses help assess a company’s long-term environmental and financial viability.
- Governance and Compliance Specialist: Ensures that companies comply with ESG-related regulations, helping businesses maintain legal standards while adhering to ethical practices.
- Sustainable Finance Professional: Plays a critical role in funding sustainable initiatives. Degrees in finance, environmental science, or related fields can provide the foundation for success in sustainable finance.
- ESG Reporting and Compliance Specialist: Ensures organizations adhere to ESG standards, prepares ESG reports, manages related risks, and engages with stakeholders to enhance transparency.
- Impact Investment Analyst: Evaluates investments for their social and environmental impact alongside financial returns. This role demands strong analytical skills and knowledge of ESG criteria.
The sector also attracts professionals from various backgrounds, including law, finance, environmental sciences, and public policy. The growth in ESG-related jobs has resulted in competitive salaries, with entry-level positions starting at around Rs 4.5 lakh annually and experienced professionals in managerial roles earning between Rs 12 lakh and Rs 30 lakh.
Educational Requirements and Skills
Professionals entering the ESG space need to be well-versed in environmental science, economics, finance, and policy-making. The increasing demand for ESG talent is leading to reskilling programs, enabling professionals from diverse educational backgrounds to transition into this field. Key skills for success include:
- Sustainability reporting
- Quantitative analysis
- A solid understanding of financial markets
The ongoing shift towards sustainability prompts Indian companies to actively seek individuals equipped with these skills, as ESG becomes central to corporate strategies and investor priorities.
The Future of ESG in India
The rapid growth in ESG-related jobs reflects a broader global shift towards responsible business practices. As India promotes green policies encouraging renewable energy and sustainable agriculture, the demand for ESG professionals is expected to rise further. India’s commitment to achieving net-zero emissions by 2070 will continue to fuel job creation in this space.
The ESG sector offers long-term career opportunities for those passionate about sustainability and corporate responsibility. The job market for ESG professionals in India is thriving and evolving, promising a future filled with meaningful careers that contribute to both environmental protection and corporate success.
