ESG reporting technology: the ultimate guide for finance professionals.

Are you ready to leverage the power of technology for ESG reporting? A 2024 report revealed that the demand for green skills in finance is skyrocketing, with thousands of roles remaining vacant across the UK. This surge in demand presents a unique opportunity for finance professionals to upskill and capitalise on the growing need for ESG reporting expertise. 

Across the Atlantic, we see a similar situation, with a study reporting an environmental, social and governance (ESG) skills gap in 77% of surveyed banking and finance organisations.

As global ESG assets continue to grow exponentially and companies are increasingly required to provide transparent and compliant sustainability reports, ESG reporting is consolidating itself as one of the most in-demand skills for finance professionals and job seekers. 

TL;DR:

• ESG reporting is a crucial skill for finance professionals due to increasing regulatory pressures and investor demand.
• Technology, including AI, blockchain, and data analytics, is transforming ESG reporting by streamlining data collection, analysis, and transparency.
• The demand for ESG reporting jobs is surging, with roles like ESG Analyst, Sustainability Reporting Manager, and ESG Data Scientist offering attractive salaries and career growth.
• Upskilling in ESG reporting and related technologies is essential for finance professionals to remain competitive and future-proof their careers.

In this article, we’ll discuss the role of technology in ESG reporting and explore related career opportunities, including Technology Jobs in Finance, ESG Data Analytics Jobs, and Sustainability Jobs in Finance.

how technology is shaping ESG reporting in finance.

Linked to the growing complexity of ESG reporting requirements is the rise of ESG reporting technology, designed to help organisations with the collection, analysis, and disclosure of sustainability data. A 2024 survey revealed that almost 75% of the companies surveyed planned to invest in ESG tech within the next year.

Advanced tools like AI, blockchain, and data analytics are key to this change. AI-powered tools and automated data analytics platforms can make data collection and analysis quicker, more accurate, and more consistent, while providing real-time insights into ESG performance and areas for improvement. Blockchain technology can enhance the transparency and security of ESG-related activities, boosting public trust in organisations.

These technologies are becoming widespread in the finance sector, transforming job descriptions and creating new roles that require expertise in areas like AI for ESG data collection, automated ESG reporting, and data analytics in ESG. Let’s delve deeper into the most sought-after ESG reporting skills for finance professionals.

essential ESG reporting skills for finance professionals.

The current scenario calls on finance professionals and job seekers to improve their technical competencies in ESG-related matters, as well as to build soft skills that can increase their employability in ESG Reporting Jobs.

On the technical side, the most essential skills include:

1. ESG data analytics.

ESG data analytics skills go hand in hand with the ability to use ESG reporting software. Finance professionals must be able to leverage tech tools to analyse and interpret complex datasets and extract meaningful insights, identify trends, assess risks, and align ESG metrics with financial goals.

Here are several examples illustrating the ESG data analytics skills required by finance professionals, alongside the use of ESG reporting software:

• Data Analysis and Visualisation: Finance professionals often use Power BI to create visual dashboards that summarise the company's carbon emissions over the past five years. By analysing this data, they can identify trends, such as a decrease in emissions correlating with increased renewable energy investments, thereby demonstrating the financial benefits of sustainable practices to stakeholders.
• Risk Assessment: Using MSCI ESG Manager, the finance team evaluates the potential financial risks posed by climate change on the company's operational locations. They quantify risks such as increased flooding in certain regions and project future financial impacts, helping management make informed decisions about investments and resource allocation.
• Reporting and Compliance: Green finance professionals use SAP Sustainability Control Tower to compile ESG reports that comply with the Global Reporting Initiative (GRI) standards. By analysing data from various departments, they ensure that all sustainability initiatives are accurately reported, enhancing transparency and improving the company's reputation with investors.
• Trend Identification: Using Python, a finance analyst scrapes data from various ESG investment reports and social media to identify emerging trends, such as increasing investor interest in socially responsible companies. They analyse the correlation between these trends and stock price movements, providing insights for strategic investment decisions.
• Integrating ESG with Financial Goals: Through Workiva, a finance team integrates ESG metrics such as waste reduction and employee satisfaction scores into their financial projections. By running scenarios, they assess how improvements in these areas could potentially reduce costs and enhance profitability, thus aligning sustainability goals with overall financial objectives.

These examples highlight the essential skills finance professionals need to effectively utilise ESG data analytics and reporting software to drive sustainability while ensuring financial accountability and performance.

2. financial modelling. 

Skills in financial modelling for sustainability, which enable professionals with the ability to quantify the financial implications of organisational ESG initiatives. The resulting data has an enormous potential for improving decision-making and resource allocation, guiding strategic investments for ongoing business growth and profitability.

Financial modelling for sustainability isn't merely about numbers—it's a superpower for businesses seeking a competitive advantage. By analysing the financial impact of ESG initiatives, professionals gain the insights needed to make informed decisions, optimise resource allocation, and drive strategic investments. The outcome? A clear pathway towards long-term business growth, profitability, and a sustainable future.  

This expertise empowers organisations to quantify the financial benefits of their ESG efforts, transforming sustainability from a feel-good initiative into a strategic advantage. With the ability to measure and model the impact of ESG strategies, businesses can confidently navigate the evolving landscape and unlock new opportunities for growth.  

In essence, financial modelling for sustainability isn't just a tool—it's a catalyst for change, enabling businesses to build a prosperous future that benefits both their bottom line and the planet.

For finance professionals, financial modelling for sustainability represents a pivotal evolution in their role, bridging the gap between traditional financial analysis and sustainable practices. By mastering the ability to measure and evaluate the financial implications of Environmental, Social, and Governance (ESG) initiatives, they can provide actionable insights that drive strategic decision-making and resource allocation. Ultimately, this expertise positions finance professionals as key players in steering their organisations towards sustainable growth, profitability, and resilience in a rapidly changing economic landscape. 

3. knowledge of key ESG standards.

In-depth and up-to-date understanding of the applicable ESG standards, including but not limited to frameworks like GRI, SASB, and CSRD, as these are the basis of compliant and consistent ESG reporting. 

If you are not sure how these standards affect your finance role, the following examples are giving a comprehensive idea:

• GRI Framework:In line with the Global Reporting Initiative (GRI) standards, organisations are expected to disclose their environmental impact, including metrics on emissions, resource use, and waste management, thus aligning their reporting with sustainable development goals.
• SASB Standards Application: The Sustainability Accounting Standards Board (SASB) provides industry-specific guidelines that help companies disclose financially material sustainability information. For instance, in the oil and gas sector, firms are required to report on greenhouse gas emissions and water management practices to meet investor expectations.
• CSRD Compliance: With the introduction of the Corporate Sustainability Reporting Directive (CSRD), companies operating in the EU and those listed in the UK must adhere to enhanced reporting requirements. This includes conducting audits of their sustainability data to ensure accuracy and transparency, as well as providing forward-looking information on sustainability risks.
• Integrating Multiple Standards: A comprehensive ESG report may integrate the GRI's broad indicators with the SASB’s sector-specific disclosures, ensuring that the organisation not only meets compliance requirements but also addresses stakeholder concerns effectively through detailed and relevant data.
• ESG Training and Development: as discussed further below, to stay ahead in the evolving ESG game, organisations are investing in training programmes for their staff, aimed at fostering an in-depth understanding of the GRI, SASB, and CSRD standards, which is crucial for ensuring accurate and compliant reporting

These examples highlight different aspects of understanding and applying ESG standards relevant for consistent and compliant reporting.

4. soft skills: the key to unlocking your ESG potential.

As for soft skills, the most relevant to ESG & finance professional development include communication skills to convey complex data clearly to a wide range of stakeholders, analytical thinking, and problem-solving. When considering the skill set required for professionals in the ESG and finance sectors, it's crucial to emphasise the importance of both technical and soft skills. While technical expertise is essential for data analysis and reporting, soft skills are equally vital for effectively communicating ESG performance and engaging with stakeholders. 

In other words, to be a successful professional in ESG reporting, you must excel in the following areas:

• Communication Skills: The ability to translate complex ESG data and financial information into clear, concise, and compelling narratives is paramount. Professionals must be adept at communicating with a diverse range of stakeholders, including investors, regulators, employees, customers, and the general public. This involves tailoring communication styles and messaging to different audiences, ensuring that ESG information is accessible and understandable to all.
• Analytical Thinking: Strong analytical skills are necessary to assess ESG data, identify trends, and evaluate the financial implications of ESG factors. Professionals need to be able to critically analyse data from multiple sources, assess the materiality of ESG risks and opportunities, and integrate ESG considerations into financial decision-making.
• Problem-Solving: ESG professionals often encounter complex challenges, such as navigating evolving regulatory landscapes, addressing stakeholder concerns, and managing ESG-related risks. Effective problem-solving skills enable professionals to develop innovative solutions, implement effective strategies, and drive positive change within their organisations and industries.
• Collaboration: ESG initiatives often require collaboration across departments and functions. Professionals need to be able to work effectively in teams, build relationships, and foster collaboration to achieve shared goals.
• Strategic Thinking: The ability to think strategically is essential for aligning ESG goals with business objectives and developing long-term sustainability strategies. Professionals need to be able to anticipate future trends, identify opportunities, and develop proactive approaches to ESG management.
• Leadership: ESG professionals often play a leadership role in driving sustainability initiatives within their organisations. Strong leadership skills, including the ability to inspire and motivate others, are crucial for achieving ESG goals and creating a culture of sustainability.

By cultivating these soft skills alongside technical expertise, ESG and finance professionals can effectively navigate the complexities of the evolving ESG landscape, drive sustainable performance, and create long-term value for their organizations and society as a whole.

To improve their competitiveness in the labour market, finance professionals will be increasingly required to update and expand their skill set through certifications and training programmes, such as the CFA Institute’s ESG Investing Certificate, the GRI Certified Training Programme, or SASB Fundamentals of Sustainability Accounting (FSA). Many of these certifications have been created for working professionals so they can be followed online and combined with your workload.

job opportunities in ESG reporting for finance professionals.

The widespread adoption of ESG reporting practices is transforming the job market, driving demand for specialised roles. Businesses in all industry sectors are becoming aware of how valuable ESG reporting skills are, and many are actively seeking qualified finance professionals who can help them meet regulatory requirements, improve transparency, and align relevant standards with investor and client expectations. 

Some key job titles and ESG reporting jobs include:

ESG analyst.

ESG analysts are essential in assessing a company’s environmental, social, and governance performance. An effective ESG performance assessment involves comprehensive evaluations of a company’s practices in environmental, social, and governance aspects. 

This process is not just about data collection; it requires a meticulous analysis of environmental impacts, the effectiveness of social responsibility initiatives, and the robustness of governance frameworks. By identifying potential ESG risks and opportunities, companies can safeguard their financial health and enhance their reputation. 

sustainability reporting manager.

This role involves strategic planning and the ability to liaise with specialists in different departments to ensure ESG goals are aligned with corporate objectives. Key to this undertaking is the creation of detailed reports for diverse stakeholders, including investors, regulators, customers, and employees, ensuring transparency and accountability.

A Sustainability Reporting Manager plays a pivotal role in this framework, orchestrating the gathering, analysis, and dissemination of ESG data across various departments. Their responsibilities extend to ensuring compliance with regulatory standards and industry best practices, allowing for strategic planning that aligns with the company’s sustainability goals. 

Through effective stakeholder engagement, they communicate ESG performance and address concerns, fostering trust and collaboration. By leading cross-functional teams, they ensure ESG considerations are not merely an afterthought but integrated seamlessly into everyday business operations, driving the organisation towards a more sustainable future.

ESG data scientist.

ESG data scientists play a vital role in enhancing a company's environmental, social, and governance (ESG) performance through their expertise in data analysis and technology. They are tasked with gathering and analysing vast amounts of ESG data from a diverse array of sources, including internal records, external databases, and third-party providers. By employing advanced technological tools such as artificial intelligence, machine learning, and data visualisation platforms, these specialists translate complex data into meaningful insights. Their work enables organisations to track their progress towards ESG objectives effectively by developing and monitoring key performance indicators (KPIs).

In addition to technical analysis, ESG data scientists generate actionable insights that support informed decision-making and bolster overall sustainability efforts. Their role often involves close collaboration with ESG analysts and sustainability teams, ensuring that data interpretation is accurate and findings are communicated clearly. By bridging the gap between raw data and strategic insight, they help companies navigate the intricacies of ESG performance and drive positive change within their organisations.

a bright future for ESG reporting roles.

The demand for ESG professionals, such as analysts, reporting managers, and data scientists, is skyrocketing. Companies are increasingly prioritising sustainability and ESG factors, and this has created a surge in the need for experts who can navigate this complex landscape. These professionals require a unique blend of skills: technical expertise, analytical capabilities, and a deep understanding of ESG issues. They play a strategic role in helping companies manage risks, identify opportunities for sustainable growth, and effectively communicate their ESG performance to stakeholders.

Technology is a critical enabler in this space. It empowers firms to collect, analyse, and report ESG data with greater efficiency and accuracy. From sophisticated data analytics tools to blockchain-based platforms for supply chain transparency, technology is transforming the way companies approach ESG reporting and analysis. As the importance of ESG continues to grow, the integration of technology will be essential for companies to stay ahead of the curve and demonstrate their commitment to a sustainable future.

Moreover, ESG finance professionals know that their work has a positive impact on the world, as it’s directly related to actions that facilitate meaningful change and social equality.

how technology impacts ESG reporting jobs.

Earlier in this article, we discussed the impact of new technologies in the ESG and finance sectors. The latest tech developments are also a key factor in the creation of specialised technology jobs in finance. We can observe similar growth patterns in both the ESG reporting software market and the global ESG reporting market, both of which have annual growth rates between 15% and 17%.

Such an upward trajectory is amplifying the demand for ESG reporting jobs that require knowledge of specific technologies like AI-driven analytics platforms, blockchain for ESG transparency, and sustainability software. 

For example:

• Proficiency in AI tools helps streamline data collection and reporting, delivering valuable real-time insights and simplifying labour-intensive processes. 
• Sustainability software facilitates the integration of ESG metrics into corporate financial reporting, saving time and resources in aligning compliance with strategy. 
• The use of blockchain in ESG reporting has a direct impact on compliance and reputation, so experts in this domain are highly sought-after for their ability to create tamper-proof records that highlight the transparency of a company, a critical feature in industries plagued by green-washing. 

Proficiency in these three technologies is becoming a must-have in ESG data analytics jobs. Overall, automation in finance and ESG reporting is expected to become an integral part of the skills base of finance professionals and is likely to transform traditional roles. Looking ahead, we see these roles evolving beyond routine tasks like compiling data manually and expanding their impact, thanks to the ability to make strategic decisions based on AI-driven insights.

Lastly, we must mention the role of machine learning technologies in vastly refining forecasting skills. This technology allows professionals to accurately predict trends, model the financial impact of ESG initiatives, and optimise corporate performance with minimal chance of human error.

conclusion.

Technology is making ESG reporting more efficient, more accurate, and more transparent. Developing skills in ESG reporting and related tech tools is becoming indispensable for finance professionals who want to remain competitive. There are exciting career opportunities available to those with expertise in ESG standards, data analytics, and sustainability reporting through roles like ESG Analyst, Sustainability Reporting Manager, and ESG Data Scientist.

Ready to become an ESG expert and lead the future of finance?

Join the Randstad F&A Community and gain a competitive edge in this rapidly evolving landscape. 

Here's what you'll gain:

• Connect with ESG Experts: Network with industry leaders, share best practices, and stay ahead of the curve.
• Unlock Career Opportunities: Explore exciting roles in sustainable finance and find the perfect fit for your skills and ambitions.
• Access Valuable Resources: Develop your ESG expertise with exclusive content, training materials, and industry insights.
• Make a Meaningful Impact: Contribute to a more sustainable and equitable future by championing ESG principles in your career.

Join the Randstad F&A Community today and position yourself for success in the world of sustainable finance.