Majority of financial services companies plan to hire ESG specialist

May 25, 2022

A recent study has found 77% of respondents plan to hire an ESG specialist as they prepare for the UK’s new rules on sustainable investments to come into effect.

According to FT Adviser, the poll comprised of 200 banks, investment managers, financial advisers. It also found that 86% of firms have performed an ESG assessment ahead of the UK’s Sustainable Disclosure Requirements and future ESG regulation.

The research – which was carried out by Tisatech and ESG provider The Disruption House – found that those who have not made plans to appoint an ESG specialist have been held back by a lack of clarity over how to perform the assessment.

Those that have not have mainly been held back by a lack of clarity over how to perform the assessment, according to the research, which was carried out by Tisatech and ESG provider The Disruption House.

The poll found that the social aspect of ESG was the last priority for businesses, with only 24% of respondents citing it as the highest priority – environment was the highest at 42% and governance at 34%.

On the topic of why businesses were motivated to address ESG, moral obligation was top on 21%, regulatory was second on 18%, then financial at 15% and competitive necessity at 13%.

In addition, 76% of companies affected by the EU’s SFDR measures agreed that they had changed the way they do business and internally consider ESG meaningfully.

Tisatech CEO Gary Bond said, “The UK has long been at the cutting edge of financial services. However, this is a time of unprecedented technological and operational change, causing institutions across the sector to re-examine how and why they do what they do.

“I am heartened to see that the industry is overwhelmingly prepared for regulation, and indeed that there is scope to go beyond regulations and hire specialists.

“I hope regulators take notice of this appetite when drafting SDR, ensuring that the UK can not only retain its place as a global leader in financial services, but establish itself as a moral leader too. The data presents a counterpoint to the view of ESG regulation as confusing, excessive, and performatively adopted.”