How to become an ESG analyst: skills, training and prospects
ESG (Environmental, Social and Governance) analysis has become one of the most sought-after professions in the financial sector. At the intersection of finance and sustainable development, ESG analysts assess the non-financial impact of companies and investments, playing a key role in the transition to a more responsible economy. For finance students, this specialisation offers exciting career prospects in a rapidly expanding field.
Read more: SRI, green, solidarity investment: how to find your way around?
The role of the ESG analyst: assessing impact beyond financial figures
ESG analysts are tasked with evaluating companies' performance on three main criteria: environmental impact (E), social practices (S) and governance quality (G). Their job is to analyse how these factors influence companies' financial performance and long-term risks.
These professionals examine a variety of data, ranging from CO₂ emissions to diversity policies and governance transparency. They produce reports and ratings that help investors make informed decisions, taking into account both profitability and societal impact.
Their role has become crucial in a context where institutional investors and regulators are increasingly demanding transparency on non-financial impacts. ESG analysts work for rating agencies, investment funds, banks or directly within companies.
Key skills for success in ESG analysis
To excel in this profession, a combination of financial and non-financial skills is required. A solid foundation in financial analysis remains essential, as ESG criteria must be assessed in relation to the company's economic performance.
Mastery of ESG frameworks and standards is essential. Analysts must be familiar with standards such as the Global Reporting Initiative (GRI), the UN PRI (Principles for Responsible Investment) and the European Taxonomy criteria. The ability to interpret complex data and translate it into clear indicators is a key skill.
A thorough understanding of sustainable development issues is also required. Professionals must keep abreast of changing regulations, such as the SFDR (Sustainable Finance Disclosure Regulation) in Europe or SEC requirements in the United States.
Training courses to specialise in ESG analysis
There are several routes to training for this profession. Master's degrees in sustainable finance or CSR (Corporate Social Responsibility) offer a suitable specialisation. Schools such as HEC Paris, ESSEC and Paris-Dauphine University offer dedicated programmes.
Professional certifications are particularly valued. The CFA ESG Certificate, offered by the CFA Institute, has become a benchmark in the sector. The CESGA (Certified ESG Analyst) certification, issued by EFFAS, is also highly recognised.
For professionals already in the field, continuing education courses allow them to specialise. Organisations such as ORSE (Observatoire de la Responsabilité Sociétale des Entreprises) and Novethic offer short, targeted modules.
Career prospects and advancement opportunities
Entry-level ESG analysts can start their careers at rating agencies such as MSCI ESG Research, Sustainalytics or Vigeo Eiris. Starting salaries are attractive, often comparable to those of traditional financial analysts, with rapid advancement opportunities.
With experience, they can move on to ESG manager positions in investment funds, banks or listed companies. Some become independent consultants, supporting companies in their transition to sustainability.
The challenges and opportunities of the profession
This profession presents specific challenges. The assessment of ESG criteria can sometimes be subjective, and the available data is still heterogeneous. Analysts must exercise judgement and rigour to produce reliable assessments.
However, there are many opportunities. Demand for these profiles is exploding, driven by the growth of responsible investment. According to a PwC study, assets managed according to ESG criteria could represent 57% of total assets under management in Europe by 2025.
ESG analysts also have the opportunity to work internationally, as sustainability issues are global. The skills acquired are transferable between sectors and countries, offering great professional mobility.
Tips for getting started with ESG analysis
To begin with, it is advisable to familiarise yourself with companies' ESG reports and the methodologies used by rating agencies. Internships with SRI (Socially Responsible Investment) funds or CSR departments are an excellent starting point.
Developing a professional network in the field is crucial. Participating in events such as the Responsible Finance Forum or joining associations such as the Forum for Responsible Investment (FIR) can open doors.
Conclusion
ESG analysis represents a unique opportunity for finance students to combine financial expertise with positive impact. With the rise of non-financial criteria in investment decisions, the prospects for this profession are excellent.
For those who wish to combine a career in finance with a commitment to a more sustainable world, ESG analysis offers a stimulating and meaningful career path. The skills acquired in this field will be increasingly sought after, making this specialisation a strategic choice for the years to come. By training now, students can position themselves in one of the most promising professions in modern finance.
