If you’re planning a career in finance, there’s one term you’ll hear more and more: ESG—Environmental, Social, and Governance. This phenomenon is shaping the way businesses and investors think about the long-term growth of their business.
With the rise of responsible investing and sustainable business practices, understanding ESG is no longer a nice-to-have; it has become a core skill for professionals shaping the future of finance.
What is ESG?
ESG refers to the environmental, social, and governance factors that influence how companies operate and how investors make decisions. Think of it this way:
- Environmental: How a company impacts the planet (e.g., carbon emissions, waste, energy use).
- Social: How it treats people (e.g., workplace diversity, pay equity, community engagement).
- Governance: How it’s managed (e.g., shareholder rights, executive compensation, transparency).
The difference between sustainability and ESG is that while sustainability focuses broadly on environmental and social responsibility, ESG links these factors directly to financial performance and investment decisions.
Daniel Leung, Country Manager at ACCA Singapore, noted during the launch of its pioneering ESG programme in partnership with KPMG that “sustainability is now a top priority for businesses, governments, and the public sector. Finance professionals play a crucial role in driving and implementing sustainable practices across organisations of all sizes.”
ESG Sustainability Reporting
Sustainability reporting ensures that companies disclose how they are managing risks and opportunities related to environmental, social, and governance (ESG) issues. Examples include:
- Measuring greenhouse gas emissions
- Disclosing workforce pay gaps
- Outlining supply chain labour standards
- Reporting on executive pay
When integrated with financial reports, ESG data gives a fuller picture of a company’s performance and long-term prospects.
Why ESG and Sustainability Matter in Finance
Currently, finance professionals are expected to analyse ESG factors to help companies stay competitive and responsible. Two forces drive this shift:
- Investor demand: Investors increasingly want sustainable green finance options that align with their values.
- Regulatory support: Authorities, including the Monetary Authority of Singapore (MAS), are encouraging sustainable practices through initiatives such as the ESG Singapore Grant and the Green Finance Action Plan.
This is a fast-growing space, making it a key driver of the future of finance. Bloomberg even predicts that global ESG assets will surpass USD 53 trillion by 2025.
Skills You Need in ESG and Sustainable Finance
Working in ESG reporting requires an expanded skill set beyond traditional accounting skills. Key capabilities include:
- Knowledge of ESG Standards: Understanding frameworks such as Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD).
- Risk Management: Identifying ESG risks such as climate change or social issues.
- Data Management: Collecting and analysing ESG metrics.
- Visualisation and Communication: Making ESG information clear to stakeholders.
The ability to understand ESG is now recognised as a sustainable finance skill that leads to a stable career advancement in the accounting and finance field.
Career Growth with ESG Skills
Finance teams worldwide need talent who can manage ESG data and support sustainable growth. An ACCA 2024 global employer survey revealed that ESG-related competencies—such as ethics, leadership, and sustainability—are among the most in-demand skills in Singapore.
In fact, demand for sustainability and green finance expertise rose from 38% to 47% in 2024, underscoring the shortage of professionals with ESG skills.
Finance professionals with ESG expertise often enjoy:
- Salary premiums (20–30% higher in some markets).
- Faster promotion and career advancement.
- More visibility and credibility in their organisations.
That’s why many are calling ESG the future of finance.
Future-Proofing Your Finance Skills with ESG Knowledge
KPMG’s research indicates that over half (56%) of existing financial services roles, representing more than 50,000 financial services professionals, will require upskilling on sustainability as ESG becomes central to core job functions.
This trend is also reflected in education, with finance courses increasingly incorporating ESG, sustainability, and green finance as essential components of their curriculum.
At London School of Business and Finance (LSBF) Singapore, our finance courses—diplomas and UK-qualified programmes combine strong technical foundations in accounting and finance with modules covering:
- ESG standards and sustainable business practices
- Data analytics for financial sustainability
- Risk management, including environmental/social/governance risks
- Ethical leadership and governance practices
This comprehensive selection of relevant accounting and finance modules will equip you with the most sought-after skills in this field, including those that meet global ESG standards and regional regulatory requirements.
Graduates can further advance their professional credentials through ACCA (Association of Chartered Certified Accountants) or the Singapore CA (Chartered Accountant) qualification, opening doors to global and local career opportunities in finance and sustainable business.
Speak to our education consultants to know more about the LSBF’s finance programmes.
