The climate crisis demands our collective attention, transcending the boundaries of green activism. Deloitte Research’s sobering estimate warns that inaction on climate change could inflict a staggering US$178 trillion cost upon the global economy by 2070. While that year may seem distant, it provides a narrow window for us to implement crucial measures within the next few decades. As extreme weather events—floods, droughts, and wildfires—become more frequent, their impact reverberates across multiple domains.
Direct costs arise from reduced agricultural yields, leading to higher prices that cascade through supply chains. Meanwhile, rising sea levels and ocean acidification threaten coastal industries such as tourism and fisheries. Indirect costs manifest when these events disrupt infrastructure and supply chains, resulting in lost productivity, property damage, and elevated insurance premiums. Singapore, in particular, feels the effects as rising temperatures escalate energy demands for cooling. In response to this reckoning, financial institutions and corporations are recalibrating their investment decisions. Enter the Environmental, Social, and Governance (ESG) framework—a compass guiding organisations toward sustainable business practices. ESG evaluates companies based on environmental impact, social responsibility, and governance practices, shaping their long-term success in an evolving world.
The Rise of ESG
Corporate sustainability has evolved beyond mere financial considerations. Today, its success is intricately tied to Environmental, Social, and Governance (ESG) indicators. ESG encompasses three critical areas: the environment, people, and corporate operations. In the realm of sustainability, environmental factors are meticulously tracked. This includes monitoring energy consumption, carbon emissions, and waste management. Efforts toward sustainability, such as pollution mitigation strategies, also fall under the ESG umbrella.
Social considerations address issues of inequality and discrimination. These encompass labor practices, diversity and inclusion efforts, and community engagement. Companies that prioritise social responsibility actively work to create a positive impact on their employees, customers, and the communities they serve.
The governance aspect of ESG evaluates a company’s leadership structure, reporting transparency, legal compliance, and risk management practices. Maintaining ethical and responsible systems is crucial for long-term success. By adhering to strong governance principles, organisations can build trust with stakeholders and foster sustainable growth.
ESG criteria serve as a critical lens through which investors, consumers, and regulators assess businesses. Professionals in various fields have a unique opportunity to align their careers with positive environmental and social impact. As the importance of ESG continues to grow, individuals who champion sustainability and ethical practices can contribute significantly to a better world.
A Perpetual Driving Force
The relevance of ESG principles have witnessed widespread adoption by corporates in their strategies. There are five compelling reasons why, and this includes push and pull factors.
Investor pressure: Investors are increasingly leaning into ESG factors during their decision-making process. With the long-term benefits well-established, a 2019 report by McKinsey shared that sustainable investment reached $30 trillion and that stakeholders recognise that "a strong ESG proposition can safeguard a company’s long-term success". ESG investing, or sustainable investing, has grown exponentially as a result, with sustainable companies demonstrating better overall resilience.
Regulatory compliance: Government agencies and regulatory bodies across the world are implementing stricter environmental and social regulations. From carbon pricing to mandatory sustainability reporting, these measures compel companies to adopt ESG practices. For example, Singapore requires those listed on the Singapore Index to produce ESG reporting.
Consumer awareness: Public awareness has made consumers environmentally and socially conscious, and more are looking out for brands that align with their values. Companies that demonstrate a commitment to ESG principles can attract and retain customers more.
Talent acquisition and retention: Millennial and Gen Z employees are known to consider value alignment when it comes to the companies they work for. Those with robust ESG initiatives are more attractive to the demographic and can boast better retention, especially with diversity and inclusivity in place.
Improved resilience: Numerous studies have shown a strong correlation between positive ESG practices and improved financial performance over time. This can come from factors like reduced risks from fines, shortages and stagnancy, as well as improved efficiency and innovation that can grow new products, services and markets. There can also be cost savings as well as new technologies are developed to provide green alternatives.
A Green Boom in Job Opportunities
With the collective drive towards the same sustainable goals, organisations are realising the need for trained employees in the field and are vying for top talent to fulfil their ESG initiatives. Based on a World Economic Forum article, “job postings for ‘green’ jobs are growing twice as fast as the number of workers with the skills to fill them”. Indeed, entire sectors are emerging from the shift towards sustainable development, giving rise to an entire new job market altogether. Some of the biggest industries to have surged in demand include:
Renewable energy: As more move away from traditional fossil fuels (oil, coal, gas), renewable energy sources such as solar, wind, and hydroelectric power are having their time in the limelight. Expect jobs related to the pipeline of design, production and distribution, in roles like engineers and technicians to project managers.
Sustainable agriculture: One of the most significant impacts climate change has had is on our food sources. With unpredictable weather changes, new environmentally-friendly farming practices are necessary to ensure our survival. Opportunities here include positions in the infrastructure and operations of organic farming, agroforestry, and sustainable fisheries.
Green building construction and management: Revisiting our existing lifestyles and building new environments to support a more sustainable one are critical to the future of our environment. Jobs in this field focus on designing, constructing, and maintaining environmentally sustainable buildings. They include architects and construction specialists, compliance and legal advisors, and energy auditors to promote energy efficiency, and waste management coordinators to optimise a circular disposal system.
Green finance and investing: As investors increasingly look towards sustainable investments that consider ESG factors alongside traditional financial metrics, there's a greater need for professionals who can ascertain compliance and value. Therein lies the need for ESG analysts and impact investing advisors. The green finance sector is also evolving with new financial products and services emerging, including green bonds and loans, and will require similar experts to build successful portfolios or raise capitals.
Unlocking Your Green Career Potential
All in all, the global interest in sustainability is creating a new Future of Work, with exciting possibilities for fresh job seekers and mid-career professionals alike. According to Bloomberg, ESG assets could become $50 trillion in AUM by 2025, representing a dramatic shift occupying a third of the global market. The significant growth in green investment presents a compelling opportunity for career development, and here are some initial steps towards establishing yourself in this dynamic field.
Research green jobs: Understand what roles are out there in the industry right now to get a sense of what employers are looking for at the moment. Explore online job platforms, attend green job fairs, and network with professionals in the field to gain a comprehensive understanding of the diverse green job opportunities available.
Identify your existing skills and interests: Take stock of your current skill set and identify areas where those and your passions intersect with the green economy. Perhaps you can look to deepen your knowledge of environmental law to obtain relevant grants, or research ground sentiments on sustainability to guide your marketing communications. MySkillsFuture identified sustainability management and decarbonisation specialists as some of the popular roles in Singapore, and can be an option for existing project managers.
Develop relevant skills: As demand rises, educational institutes like SMU Academy are providing courses to upskill or reskill interested professionals. Courses like the Advanced Certificate in Driving Sustainability for the Future: The Future of Work through a Sustainable Lens can provide a useful framework and kickstart a new career in the field. Emphasise these ESG expertise in your resume to find relevant networks and find yourself well-placed for the job market in the future.
Start from scratch: Innovation is core to the emerging green sector and provides a perfect backdrop for entrepreneurship. If you have a burning dedication to tackle environmental and social challenges, and love to take charge, consider filling gaps in the market for sustainable products or services and leverage your creativity to develop solutions.
The convergence of environmental and social concerns along with economic realities has created a dynamic green job market brimming with potential. Supported by the proven fact that ESG can steadily drive growth and create long-term value, its potential for businesses is vast and by proxy, nurtures potential for those ready to join the cause.
Unlock New Horizons with SMU’s Sustainability Programmes
With a commitment to shaping sustainable futures, SMU Academy offers innovative programmes that empower individuals to make a positive impact. Whether you’re interested in corporate sustainability, green technologies, or sustainable societies, our suite of courses equips you with the knowledge and skills needed to thrive in this dynamic field. Discover how sustainability isn’t just about staying relevant—it’s a pathway to personal growth and a chance to contribute to a greener, more resilient world.
Ready to embark on your journey? Explore SMU Academy’s sustainability programmes today!
