THE RISE AND RISE OF ESG ANALYSTS (CHAPTER 1)

?(Contributor: Manas Gupta; Editor: Abhishek Samant)

ESG has become mainstream and is now the primary offering. Of course, we still have equity analysts, credit analysts, alpha analysts, beta analysts, currency analysts, commodity analysts, long analysts (i.e. long strategy), short analysts, but essentially there are just two: (1) ESG analysts and (2) ESG-compliant analysts.

How can we upskill and cross-skill then? How can we become an ESG analyst or an ESG-compliant one?

If we are part of an organisation that encourages upskilling and invests in employees and their career development, it is easy—as is the case for me. Otherwise, it takes effort. Below are some of the ways:

1.       Learn on the job and be part of internal presentations & knowledge-sharing ESG groups either as organiser or speaker.

2.       Follow ESG rating agencies, such as MSCI, Sustainalytics and other ESG rating providers (including Fitch, S&P and Moody’s—who now also have ESG sections. Read blogs such as the ones on ESG Today, M&G Bond Vigilantes (green bonds, blue bonds, ESG bonds galore—a beginner’s guide for fixed income investors). Follow CFA Institute.

3.       Attempt a few MOOCs (Massive Open Online Courses). Fortunately for me, my organisation provides access for the same.

4. Pick up data science as a skill-set, and acquire database skills (SQL), and gain an understanding of statistics and data-handling techniques. Learn R and Learn Python

5. Follow asset managers on LinkedIn who have a great portfolio of ESG offerings. Follow organisations with highest ESG ratings (AA, AAA)—I follow Lyxor and a few more among asset managers; and Societe Generale and many others among organisations. 

6. Certifications: Go for the “The Sustainability and Climate Risk (SCR?) Certificate” by GARP (the same institute that offers FRM)—ask your manager to sponsor you for the same during career discussions and appraisals rather than asking for promotion, hike, bonus etc. My appraisal discussion with my manager is confidential so not possible to disclose here what I did ??

7. Solve my crosswords and use them at the end of your presentations. Learning is fun if presentations and sessions are complemented by quizzes, puzzles and role plays. I have created one and hope you will like this.

VERTICAL

1. Global warming below 2 degrees - an agreement named after a famous European city. Name the tower we go and see in the city.
2. The three letter acronym for "Environmental, Social, and Governance".
3. _______ is the largest city in Canada's Québec province. (Hint: The city is known for an international treaty designed to protect the ozone layer).
4. Is nitrogen a greenhouse gas (Yes or No)? (hint: nitrous oxide and nitrogen are different by the way).

HORIZONTAL

1. _______ is a company which looks at hidden costs of unsustainable use of natural resources. (Hint: part of S&P, assesses risks relating to climate).
2. Number of sustainable development goals (SDGs) by United Nations (hint: a 2 digit number to spell in words - second highest prime number below 20).
3. Highest ESG rating by MSCI. (Hint: That's also the highest credit rating by rating agencies). 

Feel free to share your thoughts. Have a great weekend !

CHAPTER 2 (as below)