Unlocking ESG Talent; Jonathan Hart Smith’s Key Insights from Sustainability Live 2024

Jonathan Hart Smith, Founder of ESG REC, engaged the attendees at Sustainability Live 2024 with a compelling fireside chat, shedding light on the current state of the ESG and sustainability job market. With a career spanning molecular biology to recruitment, Jonathan shared his unique journey and valuable insights into the evolving landscape of ESG talent.

From Science to Sustainability

Jonathan’s career began in the labs as a Molecular Biologist, but he quickly realized that the lab environment wasn’t his true calling. His transition into the business side of things, starting with a recruitment company specializing in life sciences, set the stage for his eventual foray into sustainability. Jonathan’s experience running a leading life science
recruitment firm, which was acquired nearly three years ago, provided him with a robust foundation in understanding data and the importance of impactful business practices.
With a passion for making a difference, Jonathan co-founded ESG REC with Michael
O’Brien, focusing on recruitment for ESG teams. Their mission is not only to place top talent but also to demonstrate that businesses can be profitable while actively contributing to societal good. ESG REC integrates environmental and social initiatives into their operations, such as donations to charitable causes tied to successful placements and employs people from disadvantaged backgrounds.

The Current Market for ESG Talent
Jonathan’s discussion provided a snapshot of the ESG job market, highlighting key trends and demands:

Demand for ESG Roles in the UK: There is noticeable fluidity in the ESG job market, with over 22% of the workforce changing jobs in the past year. London leads in employment numbers, far surpassing other cities.

Senior vs. Operational Roles: While there is a stable demand for senior ESG positions, the most significant growth is in junior to mid-management roles. The need for roles such as Sustainability Analysts, ESG Analysts, and Carbon Accountants is on the rise. Companies
are also seeking ESG Managers and consultants for specific projects.

Challenges in ESG Recruitment
Jonathan also identified several challenges companies face in sourcing ESG talent:

Skills Gap – There is a shortage of professionals with both technical expertise and the ability to effectively communicate and manage ESG initiatives. Many organizations struggle
with pairing technical skills with the necessary communication and project management capabilities.

Overlapping Skill Requirements –Companies often seek candidates with a broad range of skills, leading to unrealistic expectations. Jonathan suggests focusing on essential skills
and considering a mix of full-time roles and contract positions to fill gaps.

Strategies for Overcoming ESG Talent Challenges

Jonathan offered practical advice for companies navigating the ESG talent landscape:

Leverage Internal Talent – Consider promoting from within to fill ESG roles, as internal candidates already understand the company’s culture and operations.

Prioritize Influencing Skills – Ensure that ESG leaders have strong support from the Board and the ability to influence others within the organization.

Realistic Skill Requirements – For operational roles, identify core competencies and be
prepared to train or develop skills in-house. Partnering with specialized consultants for temporary needs can also be effective.

Trends and Predictions

Jonathan also some future trends that includes:

Steady Leadership Hiring – Expect continued steady hiring for leadership and middle management roles without the previous surge.

Increased Demand for Reporting Skill – There will be a growing need for professionals skilled in ESG reporting and analysis, particularly those proficient with machine learning
tools.

CSRD Reporting – Companies are building capacity to handle CSRD reporting requirements, leading to an increased demand for related expertise.

Mature Consulting Market – A shift towards using consultants for project-based needs rather than hiring permanent, multi-skilled employees.

Market Stability and Future Outlook

Jonathan has been also asked about his report last month about the stability of the current market and why the stability is beneficial?

Jonathan answered that when there is stability in supply and demand, companies can make informed decisions about hiring. According to recent data, while the number of people working in sustainability-based jobs has increased significantly since the beginning of the year, the number of vacancies has also grown. This indicates stability in job
movement, but not necessarily in the overall supply and demand balance.
The report highlights that:

Stability – Stability in the market is advantageous as it allows companies to plan better and make more informed hiring decisions.

Growth – The growth in the number of sustainability jobs is encouraging for the sector, showing increased interest and professionalization.

Vacancies – Although the number of vacancies has also risen, this suggests a competitive hiring environment.

Workforce Movement – Over the past 12 months, 20% of the UK sustainability workforce has moved jobs, shrinking the pool of available candidates.

Average Tenure – The average job tenure in sustainability roles is relatively short (1.8 to 2.3 years), which can pose challenges for businesses trying to retain experienced staff.

Hiring Trends – There has been a slight increase in senior-level hiring, though not as intense as previously. The demand for these positions is gradually climbing.

The data shows that while the market is stable, businesses face challenges such as managing job turnover and navigating a competitive hiring landscape. The stability in supply and demand provides an opportunity for companies to address these challenges and refine their hiring strategies.

Shifting Trends

Jonathan was also asked about the changes he has observed in what companies are looking for and who they are seeking. He provided some historical context to explain the current landscape. A few years ago, during the Great Resignation, companies faced significant challenges in filling roles, particularly senior positions such as Chief Sustainability Officers (CSOs) and heads of ESG. Although this trend has eased, there is now a gradual increase in senior-level hiring.
The average job tenure of around two years means that employees often gain enough experience and reputation to attract offers from other companies, which adds to the complexity of hiring and retention. Additionally, the growing importance of sustainability reporting has led to a heightened demand for professionals with expertise in this area.
Overall, the current market stability provides an opportunity for businesses to address these challenges and make more strategic hiring decisions.
Jonathan Hart Smith’s session at Sustainability Live 2024 was both enlightening and inspiring, offering valuable perspectives on the ESG job market and the future of sustainability recruitment