The Need for ESG Skills and Training
By Dr. Gwendolyn White, ISOS Group Lead Trainer
The need for environmental, social and governance (ESG) skills and training is increasing for a variety of reasons. We are seeing that trend clearly in the trainings ISOS Group delivers on behalf of various global standards.
For many of us who have been in this space for a while, it is gratifying to finally see multiple drivers converging. Investors are demanding information to assess risks in their portfolios
In addition, sustainability reporting is moving from a voluntary space into a mandatory one in many parts of the world.
Regulation is accelerating this change, and we diehard sustainability professionals are excited about it.
In Europe, the Corporate Sustainability Reporting Directive (CSRD) requirement comes into effect in 2024 for EU and some non-EU companies.
When finalized, the U.S. Securities and Exchange Commission (SEC) proposed climate change rule will require large publicly listed U.S. companies to submit information about their greenhouse gas (GHG) emissions. In addition, major U.S. federal government suppliers must submit their environmental impacts to CDP.
In September 2023, the state of California passed two climate disclosure bills, SB 253, the Climate Corporate Data Accountability Act, and SB 261, Greenhouse gases: climate-related financial risk. Starting in 2027, SB 253 will require public and private businesses that earn more than $1 billion annually and operate in California to disclose scope 1, 2 and 3 GHG emissions. For public and private companies that earn more than $500 million and operate in California, SB 261 will require them to prepare a climate-related financial risk report. In this report, they must disclose their climate-related financial risks and measures adopted to reduce and adapt to those risks.
Responses to the Allianz 2023 Risk Barometer: “Which ESG risk trends are of most concern to your company?” highlight the growing worldwide concern regarding ESG expertise.
Among the top four answers ranked by 2,712 risk management experts from 94 countries and territories was the lack of ESG expertise and resources. The multitude of ESG reporting requirements facing companies is driving the demand for skills and resources, and the demand is far greater than the supply. From our perspective, there are scores of new sustainability professionals ready and eager to get to work, but they do not have the technical knowledge to apply the tools and tactics needed to implement strategic sustainability programs.
The demand for training is on the rise. If spending on human capital is any indication, the response from the Big Four accounting firms illustrates how important ESG expertise has become. EY, PricewaterhouseCoopers, Deloitte and KPMG are spending billions for vast global networks of sustainability experts to help clients measure their greenhouse gas emissions, achieve climate and diversity pledges, overhaul supply chains, and comply with forthcoming regulations, according to Business Insider. Among their specific plans, Deloitte announced a $1 billion investment in its sustainability and climate practice, including offering training to all 340,000 of its employees. KPMG said it would spend more than $1.5 billion over three years to expand its ESG practice and train its 227,000 workers across the Americas, Europe and Asia Pacific. PwC unveiled the largest push of the “Big Four” accounting firms with plans to invest $12 billion over five years and recruit 100,000 new hires in ESG and artificial intelligence. Although dollar figures were not released, EY announced a collaboration with IBM to focus on ESG solutions that aim to help organizations accelerate business transformation..
For the past 12 years, ISOS Group has been providing ESG trainings to seasoned sustainability professionals along with sustainability career aspirants. Receiving certification has awarded them the opportunity to advance their careers and contribute to progress across the sustainability landscape. At ISOS Group, our reputation is stellar, as illustrated by clients increasingly recommending us to others. Courses include CDP, GRI (Global Reporting Initiative) and the SASB Standards and are offered on a rolling schedule. GRI offerings also include short courses on human rights and the United Nations Sustainable Development Goals, to name a few. All the courses provide an in-depth approach to understanding the standards/framework/questionnaires and a practical hands-on application. Upcoming courses include the European Sustainability Reporting Standards and IFRS S1 and S2 standards. As soon as these are available, they will be posted on our website.