Would be okay taking a 30-50% paycut to do something that makes the world a slightly better place.
Granted, I am too selfish to do something earning less than six figures.
So, does anyone know what kinds of ESG career paths are out there? Additionally, what the compensation ceiling(s) look like for each?
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ESG is a fucking meme and everyone knows it
I agree ESG is for publicity
Please note that this is an european point of view
Well for many years, ESG has only been green-washing. But I have the feeling that mentalities are evolving
On a real estate point of view, there are now a lot of ways to measure environmental impact (carbon emissions, energy consumptions etc) and those criteria are now fully integrated for institutional investors. Even on the lender side, I have come across some green loan which margin is evolving following environment criteria
On the LP side (insurers, pension funds), more and more LPs require an ESG approach for funds they invest under pressure of either governments but also from individuals they collect money from
Investment performance will still be the key driver in our jobs because this is why we are paid but environmental impact would take a larger part in investment requirements for LPs
Prob sustainability-focused funds or impact funds (both independent and those part of larger firms). All of them still have an absolute focus on returns but it looks good when they post about it on linkedin.
ESG is primarily a PR/marketing thing so that investors that want to feel good about themselves on top of being really wealthy buy the company stock.
It's a way to buy your spot in Paradise, if you could. Once you understand what it really is, I believe you can make a lucrative carreer out of it. You are definitely not making the world a better place.
I would have to imagine something like KKR Global Impact or a Generate Capital in terms of sustainable infrastructure
why do you think ESG makes the world a better place
if you want to make the world a better place, found a truly sustainable, local company that's not focused on profit maximization like patagonia, dr bronner, etc.
^this right here.
If you think it's impossible to make the world a better place and maximize profit, why do you believe in capitalism?
Operating an enterprise for profit and operating an enterprise for profit maximization are two different things
the profit motive does not equal profit maximization at any cost, so my comments here are not at odds with my favoring of capitalism
capiche?
Brofessor vs. Drumpfy is like the Yankees vs. a Little League team
I really enjoy your content, but I believe you err here. The distinction is not so great as you would imagine. Firms that maximize profit are better able to compete than those that do not because of some moral qualm. For this reason, immoral firms can often drive moral firms out of business. This makes "operating an enterprise for profit" more difficult than it might at first appear.
As an example, firms that operate with the enslavement of human beings are likely to outcompete firms that pay their employees a wage. You can say that someone could "operatE an enterprise for profit" under that competitive environment, but you'd get driven out of business so long as a deregulated legal environment allowed that practice to persist.
Isn’t that in the general sense what ESG is trying to accomplish?
my jaded answer is - no, ESG is a way for greedy assholes like larry fink to feel altruistic by repackaging substantially similar investment products that have only a tangential relationship to societal good so you can charge more in management fees
what I believe ESG for the right reasons comprises of is the following - governance that's democratic and removes conflicts of interest as best as possible (independent directors, independent audit, staggered elections, performance awards like SARs instead of cash bonuses), companies that attempt to minimize their impact to the environment, and companies that promote social causes
however, what ESG has turned into in practice is companies that make the best presentations on that. AAPL may be E and G, but they're not ESG, they use child labor. TSLA may be E, maybe even S, but they're not G (even if you think Elon is a G). sure GOOG may be E and G, but is censorship of search results and firing employees for reasonable dissent a social good? and for the love of all that is holy, is PEP good for fucking anything except super bowl ads? obesity produces worse emissions than most things in the conversation these days, the societal implications from unhealthy processed garbage are immeasurable, and no amount of independent directors will fix a company that sells legal poison.
so yes, ESG may claim to do all of these things, but I call, and will continue to call until I see change, BULL FUCKING SHIT
Del
ESG is a joke. If you remove the "woke" meaning from what you are asking, there are many high paying opportunities out there...
Environmental: Solar investor, Desalinization, Batteries, forestry, etc...
Social: Foundations Investing (Yale, Lilly, Rockefeller, Cascade)
Governance: Think Chief Diversity Officer or Partner Level Consultant at Bain, etc.
ESG = Energy Stops Growing
All ESG will do is raise the prices of everything and make life worse for anyone outside the 1%.
Once ESG is in full-swing, the "Tax the Rich" crowd will grow, and take a much more radical turn to "Eat the Rich" once they realize they've been lied to.
Be careful what you wish for.
Don’t work in “ESG” (which is pointless grift), work in renewables.
^
Director of ESG at a PE fund
I know someone who has a VP of ESG role at a big PE firm and makes half a mil roughly a year all in.
sounds like u the type of dude that wears TIGHT skinny jeans and rides citibikes smiling for no fucking reason
Nomura Greentech? Haven't looked into them much bc I don't have interest, but sounds like it's up your alley. They pay same as Nomura IB I think so good money. Had an alum working there though (SF) and they said it's a total sweatshop.
The highest paying job in ESG is trading coal, oil and natural gas for the next ten years.
ESG is a joke and a great way to try to justify higher ETF fees/actively managed funds in a world of fee compression.
For AM, this is accurate.
AM fees are compressing and my company has thought of pretty much everything to justify not pushing our fees even lower. Combined with a company effort to raise capital from EMEA and APAC, and you have a pretty decent way to increase revenues.
Additionally, oil, natural gas, and (especially in my company's case) coal trading will be a well-paying job for a while.
ESG AM Investing
Investing @ Impact Funds
Social RE (Senior Homes, Affordable Housing, Healthcare etc) - Development, Acquisitions or Asset Management
Investing @ Development Finance Institutions
Programs / Grants / Investing @ Charitable Foundations
Sustainability Consulting
Environmental Consulting (particularly CRE focused)
Social Impact Consulting
Renewables Project Development
Environmental Commodities - Trading or Investing
Cleantech VC
Cleantech IB
Cleantech GE
Cleantech Venture-Backed Startup Founder
Cleantech Corporate Jobs
Yes ESG is a publicity stunt rn. But when it becomes real, as in the capital starts chasing after viable environmental investments and energy alternatives because it needs to, those who start now will reap the benefits of the relationships built. As far as the social, governance piece, that has no intrinsic value.
ESG is complete nonsense. Issuers are taking advantage by putting green terms into their debt... so they'll pay 1% less on their debt for agreeing not to dump toxic waste for example... stuff a a business with any moral compass should be doing anyway.
Barclays has a SIB coverage group (sustainable and impact banking)
Just because ESG is a joke publicity stunt today doesn’t mean that’s the objective or what it will / should be tomorrow. Both can be true
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