Strategic Growth: Integrating Sustainability into Your Career Path
By Kaya Ten-Pow, August 2024
As the world places greater emphasis on combating climate change and promoting sustainable practices, many business professionals are looking to integrate sustainability into their careers. For business school students and alumni, this shift can be both exciting and challenging. Here’s what you need to know growing your career in this direction.
The Sustainability Job Landscape
The sustainability sector offers a diverse range of opportunities, particularly in finance and investment. According to recent research by Katherine Baird and Adair Morse, most companies – especially large ones – are actively hiring for sustainability skills. This trend is particularly evident in functions such as strategy, communications, reporting, finance, operations, and data analysis.
“We surveyed firms hiring from management programs. We were not surprised to learn that the majority of firms, and supermajority of large firms, are hiring for sustainability skills. Yet the details have a lot of surprises. Sustainability skills in the disciplines of strategy and reporting are becoming pervasive. However, in other technical disciplines such as finance, technology, and operations, firms with existing expertise in sustainability are doubling down, wanting even deeper discipline-base skills. Others are staying away, suggesting a strategic sorting of firms. This has huge implications for our teaching sustainability skills not a surface, core level in isolation, but rather embedding such education into advanced courses in disciplines.”
– Adair Morse, SAIF Co-Faculty Director and Professor of Finance at the Haas School of Business
The diversity of positions reflects the sector’s growth and the increasing integration of sustainability practices across different business functions.
Skills in Demand
To successfully transition into the sustainability sector, you’ll need to develop or highlight specific skills that are highly valued by employers. Such skills include data management and analysis, financial modeling and projections, impact measurement and management, as well as carbon accounting expertise. Employers also seek professionals with strong program management skills, strategic thinking abilities, and experience in partnership development and stakeholder engagement.
Many positions in the field require expertise and an education background in relevant fields such as Finance, Accounting, Environmental Science, Engineering, or Business. Advanced degrees or certifications are often preferred, along with several years of relevant experience. Proficiency in data analysis tools, understanding of environmental regulations, and knowledge of carbon accounting standards are also highly valued.
Challenges and Considerations
When making the switch to the sustainability sector, there are several factors to keep in mind. First, compensation can vary, and you should be prepared for potential differences compared to traditional finance or business roles. According to a study conducted by Revelio Labs and reported by Reuters in May 2023, U.S.-based bankers and money managers with job titles including “ESG” or “sustainability” earn, on average, 20% higher base salaries than colleagues of the same seniority without those labels. This salary premium reflects the growing demand for professionals with expertise in environmental, social, and governance (ESG) issues as the finance sector increasingly focuses on sustainable investing. At the same time, however, research also suggests that many people are willing to accept lower pay for work they find meaningful. A study by Hu and Hirsh (2017) found that participants were willing to accept salaries up to 32% lower for jobs they considered personally fulfilling. Given that sustainability careers often align with values of social and environmental impact, some individuals may be open to reduced compensation in exchange for more purposeful work.
Overall, actual salary changes will vary widely based on the specific role, industry, and individual circumstances. If you’re considering a move into sustainability, it’s wise to research salary ranges for your target positions and weigh the potential trade-offs between purpose and pay in your career decision.
Additionally, breaking into the sector can be challenging, as companies tend to deepen existing sustainability expertise rather than spreading it broadly. This can make it difficult for those without prior experience to secure their first role in the field.
The field often requires specialized knowledge in areas like carbon accounting, environmental regulations, and clean energy technologies. Be prepared to invest in additional learning and certifications to stay competitive. Additionally, many employers in this sector look for candidates who demonstrate a genuine commitment to sustainability goals and social impact, so it’s important to cultivate and communicate your passion for these issues.
“My advice to students is to build your sustainability trajectory from the starting point of a discipline or sector expertise. For example, someone wanting to be an impact investor in startups needs to make sure she or he has deep knowledge in startup finance. Then that person can embed impact into their credentials and expertise by the large number of experiences they have before them at Haas. Recruiters want depth, not just markers of sustainability passion. Of course, passion is a must.”
– Adair Morse, SAIF Co-Faculty Director and Professor of Finance at the Haas School of Business
Preparing for the Transition
To position yourself for success in the sustainability sector, focus on developing relevant skills in data analysis, financial modeling, and impact measurement. Consider taking specialized courses or pursuing certifications in sustainability-related topics. Look for opportunities to gain experience by working on sustainability projects within your current role or volunteering for organizations focused on environmental or social issues.
Networking is crucial in this field. Connect with professionals already working in sustainability roles, attend industry events, and join relevant professional associations. Stay informed about the latest trends and developments in sustainability, climate finance, and related regulations to demonstrate your commitment and knowledge during interviews and networking opportunities.
The transition to a career in sustainability can be rewarding, offering the chance to make a positive impact while utilizing your business skills. As the sector continues to grow, opportunities for meaningful and challenging work abound. By understanding the landscape, developing the right skills, and approaching the transition strategically, business professionals can successfully make the switch to a fulfilling career in sustainability.
Remember, while the path may not always be straightforward, the potential to contribute to positive environmental and social change makes the journey worthwhile. With dedication, continuous learning, and strategic networking, you can navigate the transition successfully and build a rewarding career in this dynamic and impactful field.