Goldman Sachs recently launched a sustainable finance-focused unit that will serve as a centralized resource to guide other divisions of the company regarding knowledge, skills, and input related to environmental, social, and governance (ESG) investing. This unit won’t replace any of Goldman’s current ESG functions or initiatives, but instead will support all groups as they build out their ESG offerings.1
This initiative has sparked other major banks and managers to offer ESG positions in their firm. Notably, J.P. Morgan Asset Management (JPMAM) hired a global head of sustainable investing earlier this year. In addition, managers including Ariel Investments, BNP Paribas Asset Management, Eaton Vance, Nuveen, PGIM, and T. Rowe Price have recently posted opportunities for ESG positions.2
With more investment firms implementing ESG initiatives, there is larger demand for employees in the industry which leads to increased competition for top ESG talent.3 Asset managers are looking to find talent with a background in sustainable finance offerings and the ability to articulate ESG philosophies, which will in turn, give the manager a competitive edge in seeking business from institutional investors.
Goldman Sachs is just one of many firms looking for professionals with ESG expertise. This growth should continue to bring attention and increased knowledge and talent to the industry.