The finance industry is facing a structural shift. No longer is profitability the sole marker of success; increasingly, sustainability is becoming a core component of strategic decision-making. This change is driven by both regulatory pressure and stakeholder expectations, resulting in a surge in demand for professionals who can operate at the intersection of finance and sustainability. Green finance – broadly defined as financial activities that support environmentally responsible projects and practices – is no longer a niche concern. It is reshaping hiring pipelines and talent priorities across the sector.
This article explores why green finance is rising, what kinds of roles and skills are now in demand, and how firms can rethink their recruitment strategies to meet the moment.
The Rise of Green Finance: More Than a Trend
Green finance encompasses a range of financial services including green bonds, ESG investing, climate risk modelling, and sustainability-linked lending. This is being driven by several converging forces. First and foremost, governments around the world – including the UK – have made ambitious climate commitments. The UK government’s pledge to reach net-zero carbon emissions by 2050 is underpinned by policy changes that affect every aspect of economic life, from energy to transport to housing.
Financial institutions are both being regulated and incentivised to support this transition. The introduction of the Green Finance Strategy by the UK Treasury and Department for Business, Energy & Industrial Strategy (BEIS) marked a formal recognition of finance as a lever in achieving climate goals, according to the government’s published strategy paper from July 2019. As part of this strategy, regulatory frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) have become mandatory for many firms, requiring them to publish detailed reports on their exposure to climate risk.
Investors are also playing their part. There is a growing preference for sustainable investing – BlackRock’s CEO Larry Fink famously declared in 2020 that climate risk is investment risk. As more capital is allocated to ESG-compliant funds, the pressure on firms to develop internal ESG expertise has intensified.
The Jobs Boom in ESG and Sustainability
This shift has given rise to a number of new job titles and responsibilities that didn’t exist a decade ago. Hiring managers are now actively recruiting for:
ESG Analysts and Strategists: Professionals who interpret ESG data, assess company performance against sustainability benchmarks, and make investment recommendations accordingly.
Sustainability Reporting Officers: Specialists who ensure that disclosures align with frameworks such as TCFD, GRI (Global Reporting Initiative), or SASB (Sustainability Accounting Standards Board).
Green Finance Product Developers: These individuals work on the design of financial products tied to environmental outcomes – for instance, sustainability-linked loans or climate resilience bonds.
Climate Risk Officers: A new breed of risk professional focused exclusively on understanding how climate-related events and regulations impact asset values.
Sustainable Supply Chain Auditors: Particularly relevant for investment firms conducting due diligence across portfolios where environmental impact is a concern.
The International Labour Organisation has estimated that 24 million jobs worldwide could be created by the green economy by 2030, with a significant proportion of these falling within the financial and professional services sector.
A 2023 report by LinkedIn and the World Economic Forum found that the proportion of green-skilled talent in the financial sector grew by over 38% between 2017 and 2022. However, this growth is not evenly distributed and is failing to keep pace with the explosion in demand.
Why Financial Firms Are Struggling to Hire
Despite the clear business case for developing green finance capabilities, the talent pipeline is under strain. In the UK, competition for ESG-skilled candidates has become intense. The Green Jobs Taskforce – a government and industry collaboration – has noted in its findings that the biggest barrier to green transformation is not money, but people. There simply aren’t enough professionals who possess both financial expertise and deep knowledge of sustainability frameworks.
Many candidates have experience in traditional finance but lack exposure to climate science, carbon accounting, or ESG regulation. Conversely, those with environmental science backgrounds often lack the commercial fluency or regulatory understanding required for roles in banking, insurance, or asset management. The sector is crying out for hybrid professionals, and they’re in short supply.
This skills mismatch is compounded by the lack of standardisation in ESG reporting and measurement. Recruiters often report confusion around what ESG expertise actually entails – and candidates, in turn, are unsure which qualifications or experiences will make them competitive.
The Skills in Demand: What the New Finance Professional Looks Like
To meet future workforce needs, financial firms are increasingly seeking candidates who combine analytical rigour with environmental awareness. The following competencies are especially in demand:
Understanding of ESG Frameworks: This includes fluency in TCFD, GRI, and EU Taxonomy regulations, as well as emerging UK frameworks such as the Green Finance Education Charter supported by the Chartered Banker Institute.
Carbon Literacy: The ability to understand and communicate the impact of carbon emissions on portfolios, and how decarbonisation targets should be operationalised.
Data Analysis and Tech Skills: ESG investing is highly data-driven. Proficiency in Python, R, Power BI or other data tools can be a strong differentiator.
Stakeholder Engagement: Firms are looking for professionals who can communicate effectively with investors, clients, regulators, and internal teams about their ESG goals and progress.
Climate Risk Modelling: In investment banking and insurance, the capacity to model the financial impacts of climate-related events is becoming indispensable.
These are not peripheral skills. Increasingly, they are being integrated into the core competencies required for promotion and leadership within financial organisations.
Rethinking Recruitment: How to Adjust the Hiring Pipeline
If demand is outpacing supply, financial firms must be more proactive and creative in sourcing talent. Here are a few ways to do that:
Build Internal Pipelines Through Upskilling
Retraining existing employees in ESG-related skills is perhaps the fastest way to close the gap. Many firms are investing in in-house training programmes, partnerships with sustainability institutes, and even creating internal ESG academies.
For example, Barclays has partnered with Cambridge University’s Institute for Sustainability Leadership to develop bespoke ESG training for its staff, according to statements by the bank’s HR team.
Broaden the Talent Pool
Instead of only recruiting from the usual MBA or CFA-qualified circles, employers should consider candidates from environmental science, climate law, or public policy backgrounds. Cross-sector experience can be an asset in navigating the increasingly complex sustainability landscape.
Support Professional Development
Sponsorship of recognised ESG certifications such as the CFA Institute’s Certificate in ESG Investing or the IFRS Foundation’s training on sustainability disclosures is becoming common. These credentials help build credibility and confidence – both for candidates and employers.
Offer Clear Career Pathways in ESG
Firms must communicate clearly how ESG roles fit into broader career trajectories. For many candidates, especially younger professionals, working in sustainability is a key motivator – but they also want to see long-term prospects.
The Role of Leadership and Culture
Embedding ESG into hiring is not just about technical capability. It’s also about culture. Senior leaders need to model the importance of sustainability in how they set strategy, measure success, and develop talent. Without this top-down alignment, efforts to build green teams often stall.
This is especially true in areas such as performance evaluation, where sustainability goals must be weighted meaningfully. A 2023 report from Deloitte found that fewer than half of UK financial services firms currently tie executive pay to ESG metrics – a missed opportunity to signal seriousness to the workforce and to investors.
From Compliance to Competitive Advantage
Green finance is not simply a compliance obligation. It is a growth engine – and firms that get ahead of the curve by developing strong internal capabilities will be better positioned to attract clients, satisfy regulators, and deliver long-term value.
But to succeed, organisations must move beyond reactive hiring. They need to build ecosystems of talent that are diverse, future-ready, and aligned with sustainability goals. That requires a shift in mindset – from treating ESG as a reporting requirement to embracing it as a core element of competitive advantage.
The good news? Candidates want to do this work. Surveys from PwC and LinkedIn show that sustainability is a major career priority for millennial and Gen Z professionals. By aligning their talent strategies with green finance priorities, firms can not only future-proof their business – they can also build a workforce that’s motivated, mission-driven, and ready to lead the next era of finance.
