ESG employment pays better (2023)
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According to Reuters, U.S. finance professionals who have ESG in their job title earn about 20% more than their non-ESG colleagues on average, at least in terms of base salary. The discrepancy began about three years ago and has continued to grow:
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U.S.-based bankers and money managers whose job titles include "ESG" or "sustainability" earn on average around 20% higher base salaries than colleagues of the same seniority without those labels, according to analysis of salary data shared with Reuters. More than $30 trillion in capital has been committed to environmental, social and corporate governance-related investments as the world looks to curb greenhouse gas emissions and companies face pressure on issues such as workplace diversity and social justice. This has sparked a scramble to find bankers and asset managers for these roles, leading to higher base salaries than for equivalent professionals in non-ESG related functions, the analysis conducted for Reuters by New York-based data startup Revelio Labs shows. "Salaries of ESG and non-ESG personnel started to diverge in 2020, in line with the spike in hiring in ESG roles due to the increasing focus on ESG and sustainable investing in the finance sector," said Loujaina Abdelwahed, an economist at the company. The strong demand for professional talent comes amid a political backlash against ESG in parts of the Western world, especially in the United States, where it has culminated in various laws to remove environmental and social considerations from business in some states…. Since 2019, the rate of base salary growth for ESG roles has been about 38 percentage points higher than non-ESG personnel, Abdelwahed said. ESG-tagged roles overtook non-ESG on a six-month moving average basis in June 2020 and in August 2021 surged to peak around $109,846, fully $20,000 higher than non-ESG.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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