ESG - the HOT spot

ESG talent is in big demand but supply lags by over 48% for work-ready talent, says TeamLease Digital as reported in ET.

Skills required are –

·??????? Analytical

·??????? Sustainability Expertise

·??????? Financial

·??????? Stakeholder management

·??????? Project Management

About a year back, when I was discussing future trends with CA(Dr,) Atul Gupta, Ex-President, ICAI, he expressed his views on ESG in one line –

“Do what today others won’t, so tomorrow, you can do what others can’t.”

What a visionary statement it has proved to be.

There are no professionals and experts in the field and demand is rising by the day.

ESG considerations are increasingly being integrated into the deal-making process by M&A professionals, according to a new survey by global professional services firm KPMG, which found that over half of respondents reported that they have cancelled deals due to material findings during ESG due diligence and that nearly two-thirds of investors would pay a premium for companies aligned with their ESG priorities.

For the study, KPMG surveyed 200 U.S. ESG practitioners including corporate investors, financial investors, and M&A debt providers.

What is ESG?

?ESG stands for environmental, social and governance. These are called pillars in ESG frameworks and represent the 3 main topic areas that companies are expected to report in.?The goal of ESG is to capture all the non-financial risks and opportunities inherent to a company's day-to-day activities.

Why is ESG here to stay?

?Our world faces a number of global challenges: climate change, transitioning from a linear economy to a circular one, increasing inequality, balancing economic needs with societal needs. Investors, regulators, as well as consumers and employees are now increasingly demanding that companies should not only be good stewards of capital but also of natural and social capital and have the necessary governance framework in place to support this.?

More and more investors are incorporating ESG elements into their investment decision making process, making ESG increasingly important from the perspective of securing capital, both debt and equity, reports Deloitte.

?There are several study materials and courses now available for the aspirants to get expertise in ESG and this is the need of the hour.