Now that we understand what constitutes ESG, its importance, and its history, let's look at the career options available within each pillar of ESG. In this chapter, we will explore the career opportunities within the Environment Pillar of ESG.
So, let’s begin!
Renewable Energy
If you are enthusiastic and optimistic about the transition to greener energy alternatives, this industry might be for you. According to a report1, the renewable energy sector is expected to grow at a 16.80% CAGR from 2024 to 2031. This growth will increase the demand for analysts in the following areas:
Life Cycle Assessment (LCA) – This involves evaluating the environmental impact of a product, or in this case, energy plants, over their entire life cycle, thereby increasing resource efficiency and reducing liabilities. It is a highly skilled job that requires significant practice and is well-compensated. Various courses are available to learn LCA, and you can include examples of your work as supporting documents when applying for jobs.
Energy Generation Forecast Using AI – I recently completed a course on Climate and AI from Coursera (highly recommended if you are already working in the ESG field). The course covered how AI and historical wind data can forecast wind direction, power, and intensity, which is then used to estimate the energy generated from windmills. This data can optimize the power flow in the grid, using fossil fuels only when there is high demand. Learning Python is essential for building and operating these models, and numerous free resources2 are available to help you start a career in this ESG vertical.
Climate
According to NASA3, Earth was about 2.45 degrees Fahrenheit (1.36 degrees Celsius) warmer in 2023 than in the late 19th century (1850-1900) preindustrial average. The ten most recent years are the warmest on record. With global warming increasing at an alarming rate, mindful investors are likely to divert their capital towards companies making efforts to reduce their GHG emissions.
Climate Analyst – A climate analyst collects GHG emissions data and performs GHG accounting. This is an entry-level job with few prerequisites, such as knowing how to navigate annual/sustainability reports of companies and understanding Scope 1, 2, and 3 emissions (which can be learned within half a day).
Assessing Companies
Reducing GHG emissions from business activities is essential to contain global warming, but it is not the only concern. Companies also need to ensure their products and services are environmentally friendly. Let's explore various job types in this market:
Green Building – The construction sector produces 37% of global emissions4. This underscores the importance of green building certifications such as LEED, BREEAM, IGBC, and others. Investors and funds will need information on the revenue earned by construction companies through selling or renting properties with green building certifications. A sector analyst collects this data using methodologies set by different companies and reports it to investors and funds. Experience is the key to mastering this high-paying job, as no specific certification or course prepares you for it.
Green Transportation – Transportation accounts for 14% of global GHG emissions5. Green transportation is essential, and many companies are focusing on green transportation technology. A green transportation sector analyst estimates how much a company earns from selling technologies (such as cars, batteries, EV chargers) that support green transportation.
Energy Efficiency – Energy efficiency involves using less energy to perform the same task. Companies sell various materials, technologies, and products that help reduce energy consumption for end consumers. A sector analyst focused on energy efficiency estimates how much companies earn by selling such technologies.
Quantitative Data Collection
Companies report numerous quantitative data points other than GHG emissions, such as water consumption, waste generation (hazardous and non-hazardous), and electricity consumption. A quantitative data collection analyst gathers this data for investors and fund managers to use and compare various companies within the same industry. Skills required include understanding where to find this data (usually within ESG factbooks and frameworks) and understanding frameworks such as SASB, TCFD, and GRI.
This concludes our module on career options within the Environment Pillar of the ESG industry. In the next module, we will cover the Social Pillar before moving on to the often-overlooked Governance Pillar.
Citations:
1 - Renewable Energy Market Size, Share, Analysis, Trends, Growth and Forecast | 2031 (skyquestt.com)
2 - Learn Python - Full Course for Beginners [Tutorial] - YouTube
3 - Global Temperature | Vital Signs – Climate Change: Vital Signs of the Planet (nasa.gov)
4 - Building Materials And The Climate: Constructing A New Future | UNEP - UN Environment Programme
5 - Transportation emissions worldwide - statistics & facts | Statista
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