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Western EuropeSeptember 29 2021

Rising demand for ESG banking roles in England and Wales

Vacancies are driven by growing demand for environmental consultants, data compliance experts and diversity specialists.
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Rising demand for ESG banking roles in England and Wales

Environmental, social and governance (ESG) job vacancies in the banking industry in England and Wales are set to jump 47% year-on-year in 2021, driven by demand for environmental consultants, data compliance experts and diversity specialists, according to projected annualised data from labour market analytics firm Vacancysoft. As of end-August, 617 ESG banking roles roles had been advertised — this figure is projected to rise to 926 by the end of the year. 

The specialist qualifications required for ESG roles mean that many of the vacancies are for senior positions, on the back of a big rise in demand for division-head and director roles. Overall, the number of ESG banking jobs in the UK has risen by 643% since 2013.

Sustainability transformation is replacing digital transformation as the key driver in financial services

Oliwia Berdak, Forrester

“In terms of new vacancies [in banking], ESG-related roles are one of the biggest growth areas,” says James Chaplin, chief executive of Vacancysoft. “It’s still quite a niche area, so a lot of the roles advertised are quite specialised.”

“Sustainability transformation is replacing digital transformation as the key driver in financial services,” says Oliwia Berdak, a financial services analyst at Forrester. “And the hiring data reflects this. A lot of new regulation — from the EU Taxonomy [Regulation] and Corporate Sustainability Reporting Directive to the Bank of England stress tests — is changing the way banks operate. To meet these requirements, banks need to hire across the board.”

The number of environmental consulting and advisory vacancies in 2021 is expected to rise 72% year-on-year to 86 advertised positions in England and Wales, up from 50 positions in 2020. The number of data-compliance vacancies is expected to rise to 107 by the end of the year.

“The new ESG regulations involve a lot of reporting, which requires gathering lots of data,” Ms Berdak says. “A lot of new products in areas like green finance and sustainability-linked loans require experts to structure and validate them, and there is demand for this kind of expertise.”

The area of diversity and inclusion (D&I) is also seeing greater demand for specialists. The number of vacancies is up 137% year-on-year in 2021, with 57 roles advertised in England and Wales compared with 24 in 2020. “D&I policies have received a greater attention over the past couple of years, and this has filtered down to hiring processes and talent development,” she adds.  

The Vacancysoft data also points to a shift in the geographical location of many financial services roles, with two-thirds of the ESG roles advertised in 2021 outside of London in other areas of England and Wales. “Banks are opening regional offices and Covid-19 has changed the way we work,” Mr Chaplin says.

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Read more about:  ESG & sustainability , Western Europe , UK