Green and Sustainable Finance: Why ESG is a Must-Have Skillset
With Environmental, Social and Governance (ESG) regulations tightening and investors demanding transparency, businesses must embed ESG principles into financial decision-making, corporate governance, and risk management. Finance and accounting teams have an important role to play in shaping sustainable futures for their organisations and finance leaders must be as fluent in sustainability metrics and ESG reporting as they are in P&Ls and balance sheets. Organisations that fail to create green and sustainable finance functions risk falling behind, both reputationally and commercially.
Sustainability must be hardwired into the way organisations plan, invest, and grow. The shift towards green and sustainable finance is reshaping the very definition of financial leadership, demanding a new blend of technical expertise, ethical responsibility, and strategic foresight.
Why Sustainable Finance is Important
The global shift towards sustainability is not a passing trend. Mandatory ESG reporting regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the UK’s Sustainable Disclosure Requirements (SDR), are pushing companies to disclose their ESG performance with the same rigour as financial performance.
Investors are increasingly funnelling capital towards businesses that demonstrate environmental stewardship, social responsibility, and strong governance. Consumers too are concerned about how businesses operate, scrutinising corporate values and holding companies accountable for their environmental and social impact with more than 80% willing to pay more for sustainable products and 45% making more sustainable purchasing choices. Organisations that align their financial strategies with ESG principles are more likely to win customer trust, build brand loyalty, and sustain long-term growth.
According to the International Federation of Accountants (IFAC), finance and accounting teams must now equip themselves to support transitions to sustainable economies, combining traditional financial acumen with ESG literacy.
Finance Executives and ESG Leadership
The finance function is uniquely positioned to lead the integration of ESG into business strategy because it controls the data, risk assessments, and resource allocations that drive corporate decision-making. Effective ESG leadership means putting green and sustainable finance principles at the heart of strategic decision-making. Senior finance leaders must champion ESG initiatives and drive a culture of accountability throughout their organisations.
Key ESG leadership competencies include:
- Integrating ESG considerations into budgeting, forecasting, and strategic planning.
- Developing and reporting on ESG metrics aligned to global frameworks such as GRI, SASB, and TCFD.
- Navigating new and existing sustainability taxonomies and regulations.
- Advising boards and investors on ESG risks and opportunities.
ESG in Accounting and Financial Reporting
In the past, ESG factors were often seen as “non-financial.” Today, they are fundamentally financial. Whether it is the risk of stranded assets, carbon pricing, regulatory fines, or reputational damage, ESG issues increasingly have direct financial implications.
Green and sustainable finance is shifting the accountant’s role from traditional scorekeeper to strategic partner, providing insights that drive long-term value creation. Accountants must be proficient in:
- Measuring and assuring non-financial information.
- Embedding ESG risks into audit plans and internal controls.
- Supporting integrated reporting that combines financial and sustainability performance.
- Advising on sustainable finance initiatives, such as green bonds and sustainability-linked loans.
- Understanding how AI is being used in financial reporting, ESG data collection, and risk analysis, and applying this knowledge to drive efficiency and transparency.
Hiring for Green and Sustainable Finance Skills
The first step to building a finance team equipped for the sustainable economy is integrating ESG into your hiring strategy. Start by prioritising candidates who have proven ESG reporting and sustainable finance experience and look for professionals who have enhanced their skills through ESG-specific certifications and sustainability training.
Redefine your leadership development programmes to embed ESG competencies as core requirements and focus on building interdisciplinary teams that blend expertise across finance, risk, legal, and sustainability domains. In doing so, you create a finance function that is truly future-ready.
However, sourcing ESG-literate finance professionals in today’s competitive market can be challenging. This is where working with a specialist recruiter becomes essential. A specialist partner, like Cedar, can help you:
- Access a broader, high-quality network of ESG-ready finance professionals.
- Identify candidates with both technical and strategic ESG expertise.
- Speed up your hiring process while maintaining precision and cultural fit.
- Stay ahead of market trends and evolving regulatory demands.
By acting decisively, you can secure the talent you need to meet growing stakeholder expectations, navigate new regulations, and create lasting value through green and sustainable finance.
Green and Sustainable Finance is No Longer Optional
The future of finance and accounting functions is sustainable. The integration of green and sustainable finance into core finance activities is reshaping the expectations for finance professionals at every level. Organisations that embrace ESG leadership and sustainable finance and accounting skills will become more resilient, competitive, and valuable.
At Cedar, we understand that finding the right finance talent is about more than just technical skills. It’s about identifying future-ready leaders who can navigate new complexities. Whether you are reassessing your finance function or looking to build ESG capability into your teams, our Accounting & Finance practice can help you secure the talent that will shape your organisation’s sustainable future.
