Priya Patel
TLDR: China is experiencing a shortage of finance professionals with expertise in environmental, social, and governance (ESG) issues, according to the CFA Institute. The surge in demand for sustainable investing, driven by the global “do-good” investment trend and China’s aim to reach net-zero greenhouse gas emissions by 2060, has created a significant gap in ESG knowledge and skills. The lack of training opportunities, unclear career positioning, and shortage of career guidance are inhibiting the development of ESG talent. Qualified professionals with ESG expertise remain in short supply, with fewer than 10% of ESG professionals in mainland China holding a relevant qualification or accreditation. However, China’s sustainable finance market is expected to quadruple to CNY 70 trillion ($9.8 trillion) by 2031. To address the talent shortage and accelerate its transition to a low-carbon economy, China is introducing stricter ESG disclosure rules and encouraging companies to disclose ESG information. The government, enterprises, and universities should collaborate to develop a structured and standardized system for cultivating ESG talent, including establishing guidelines, clarifying standards, introducing qualification and degree certificates, and creating ESG finance-related courses.
The CFA Institute has highlighted the acute shortage of finance professionals with expertise in environmental, social, and governance (ESG) issues in China, as the demand for sustainable investing grows rapidly. The surge in demand is driven by the global “do-good” investment trend and China’s goal of reaching net-zero greenhouse gas emissions by 2060. However, the lack of training opportunities, unclear career positioning, and shortage of career guidance are hindering the development of ESG talent in the country.
The CFA Institute recommends that the government, enterprises, and universities collaborate to build a structured and standardized system for cultivating ESG talent. This includes establishing guidelines, clarifying standards for practitioners, introducing more qualification and degree certificates, and accelerating the construction of ESG finance-related courses in universities. The CFA Institute also emphasizes the need for professional organizations to integrate the strengths of all parties and accelerate vocational education and training.
Currently, there is a significant gap in ESG knowledge and skills among professionals in ESG-related jobs, with 60% of ESG professionals having received no relevant training. Qualified professionals with ESG expertise are in short supply, as fewer than 10% of ESG professionals in mainland China hold a relevant qualification or accreditation.
Despite the talent shortage, China’s sustainable finance market is projected to quadruple to CNY 70 trillion ($9.8 trillion) by 2031, according to UBS. To catch up with global peers and accelerate its transition to a low-carbon economy, China is introducing stricter ESG disclosure rules. The Shanghai Stock Exchange has encouraged companies to disclose ESG information, and all companies on the Science and Technology Innovation Board, known as the Star Market, are required to disclose ESG information in their annual reports.
