ESG INVESTMENT ANALYST | WHAT IS ESG INVESTMENT? | WHAT DOES AN ESG INVESTMENT ANALYST DO?

An ESG investment analyst works in the finance sector with a special focus on evaluating companies' material risks and growth opportunities using ESG (Environment, Social and Governance) metrics. The metrics for reporting on ESG are not universal and can be tailored depending on the type of work a business does.
ESG considerations are quickly being incorporated into finance assessments and creating transformative change. ESG metrics are often not a mandatory part of financial reporting, but it is becoming much more common and there are many institutions that regulate ESG reporting. Some of the more common include the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI), and the Task Force on Climate-related Financial Disclosures (TCFD). An example of an environmental ESG metric is climate change. For this metric, an ESG investment analyst would analyse how companies might or will be affected by climate change and what they can do to mitigate these impacts. An example of a social ESG metric is how companies address human and labour rights within their operations. A governance ESG metric is disclosing the organization's governance and structure for disclosing information on climate change risks and opportunities. Typical duties in this position could include conducting research and completing an analysis of a company's ESG performance. As well as, identifying the risks and opportunities of a company based on their ESG assessment and engaging with companies to encourage better ESG practices and improve overall sustainability.