An ESG analyst is a professional who specializes in Environmental, Social, and Governance (ESG) analysis. They play a critical role in evaluating a company's performance and impact in these three areas. ESG has become a crucial aspect of investment decisions and corporate strategies as companies are increasingly recognizing the importance of sustainability, responsible business practices, and ethical governance. In this blog post, we describe the primary responsibilities and the most in-demand hard and soft skills for ESG analysts.

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Main Responsibilities of an ESG Analyst

The following list describes the typical responsibilities of an ESG Analyst:

Act as

Act as project lead, including supervisory and/or managerial activities, in the coordination of the analyst team to successfully complete Corporate Responsibility projects.

Adapt to

Adapt to and work effectively in a variety of situations and with a variety of individuals or groups.

Advise

Advise on integrating ESG considerations into investment strategies.

Aggregate

Aggregate, track and verify property-level building utility data, efficiency projects, audits, certifications and ratings using Engie, EnergyStar Portfolio Manager, Measurabl, Microsoft Excel and other third-party software programs as well as working with property managers, tenants, and third-party vendors.

Aid

Aid with creation of materials such as pitchbooks, presentations, annual sustainability report, annual diversity equity and inclusion report, etc.

Align with

Align with key ESG reporting frameworks including SASB, GRI, TCFD, CDP, and UNSDGs.

Analyze

• Analyze and report on sustainability data to senior management and internal stakeholders.

• Analyze ESG data to identify strengths and areas for improvement.

• Analyze large utility variances and gather explanations.

• Analyze shareholder resolutions and proxy voting in relation to ESG concerns.

• Analyze the collected data for accuracy and completion.

Assess

• Assess a company's social initiatives and community engagement efforts.

• Assess the alignment of corporate practices with international sustainability frameworks.

Assist in

• Assist in applications, reporting and interaction with industry groups such as the UN PRI.

• Assist in mentoring, training, and integrating junior/ new teammates and interns.

• Assist in the development and implementation of corporate ESG and Sustainability initiatives.

• Assist with researching, obtaining, tracking and reporting building certifications, including LEED®, ENERGY STAR®, IREM Certified Sustainable Property, and other platforms.

• Assist with researching, tracking, monitoring, and complying with existing and pending benchmarking and building performance regulations.

Build

• Build cross functional partnerships and consensus.

• Build relationships and maintain close contact with functional stakeholders to identify and document sustainability related initiatives.

• Build relationships with the management teams of the portfolio companies to support the improvement of ESG practices, performance and risk management, particularly with the ESG leads at each portfolio company.

Capture

Capture and distribute meeting notes.

Collaborate with

• Collaborate with cross functional, cross geography team members to improve the process for data reporting and analysis and develop proposals to strengthen global governance.

• Collaborate with cross-functional teams to integrate corporate sustainability and ESG considerations into business decisions and processes.

• Collaborate with ESG rating agencies and data providers.

• Collaborate with investment teams to incorporate ESG factors into decision-making.

• Collaborate with the ESG team and internal stakeholder groups on initiatives to support the continuous improvement of social KPIs.

Communicate

Communicate key insights and findings to COE leadership.

Conduct

• Conduct benchmarking and peer comparisons on ESG metrics.

• Conduct macroeconomic analysis of ESG-related trends and developments.

• Conduct materiality assessments.

• Conduct meetings to check the progress of projects to ensure agreed upon deadlines will be met.

• Conduct pre-assurance activities and corporate reviews of GHG emissions data, including renewable energy claims, to ensure compliance with external climate standards and regulations.

• Conduct research and prepare briefings, insights, and analyses regarding trends from public ESG disclosure evaluations.

• Conduct research on best practices and trends in ESG-related fields.

• Conduct research on companies' ESG practices and performance.

• Conduct research to identify industry best practices and emerging trends in sustainability reporting and disclosure.

• Conduct risk assessments related to ESG issues.

Continue to

Continue to develop EBI’s internal ESG strategy and ensure that EBI is positioned to meet our ESG goals and performance annually.

Contribute to

• Contribute to ESG-related thought leadership and research.

• Contribute to the development, preparation and publication of Healthcare Realty's Corporate Responsibility Report in alignment with various reporting frameworks such as SASB, TCFD, GRI, CDP, and/or ISSB.

Coordinate

• Coordinate and develop materials for quarterly ESG Committee meetings.

• Coordinate and/or participate in other aspects of reporting and disclosure, data verification processes and internal status reporting.

• Coordinate and support accurate and timely reporting to the ESG rating agencies in accordance with the Company’s ESG governance and as directed by the COO.

• Coordinate involvement of personnel from other departments and information technology groups to facilitate successful project implementations.

• Coordinate responses to ESG information requests from clients, prospects, and internal teams.

• Coordinate the production of the annual ESG report and maintain the ESG/Sustainability presence on the company’s website.

• Coordinate with and supports Corporate Communications for the successful development and publication of the SJW Group Sustainability Report.

Create

Create meaningful analysis to build an enabling ‘story telling’ for relevant stakeholders.

Define

Define and monitor business processes to generate upstream data that will define our business functions and enable us to identify opportunities to refine our business processes.

Design

• Design and implement required checks and measures to enhance robustness of the process.

• Design, generate, review and understand ESG reports.

Develop

• Develop and communicate climate / decarbonization / net zero strategies.

• Develop and execute the social audit preparation plan and timeline, including presentations, templates, and stakeholder training.

• Develop and implement a comprehensive corporate sustainability and ESG strategy that aligns with the company's values and objectives.

• Develop and implement a comprehensive monitoring and disclosure program to measure the impact of sustainability initiatives, including developing KPIs and data collection processes, by collaborating with cross-functional teams to align sustainability goals with business objectives.

• Develop and implement an annual Go-To-Market strategy for providing ESG services to existing clients and new potential clients, collaborating with internal practice leaders, account executives, analysts, marketing, and more.

• Develop and implement sustainability programs that reduce our environmental impact and improve our resource efficiency.

• Develop and maintain databases and systems to track ESG data.

• Develop and manage the corporate sustainability and ESG budget and ensure that resources are allocated effectively.

• Develop and manage the process to collect, track, and maintain data and copy required for CSRD compliance related to social indicators.

• Develop customized ESG scoring models and methodologies.

• Develop, manage, and implement the social data collection campaign, including scope confirmation, stakeholder training, and data validation.

• Develop scenario planning tools/models (exit/maintain/grow).

• Develop sustainability reports and related communications.

Document

Document and monitor action items to ensure stakeholders are aware of assignments and items are being completed.

Draft

• Draft process documentation and business requirements.

• Draft responses to investor requests, including PRI and SFDR reporting and support general communications to investors on progress against DigitalBridge’s ESG strategy, including annual ESG report, PRI report, PAI reporting, and EU Taxonomy reporting.

Educate

Educate internal stakeholders on ESG principles and benefits.

Engage with

• Engage in advocacy efforts for sustainable business practices.

• Engage with clients by building and maintaining key customer relationships to create opportunities for client growth.

• Engage with company representatives to gather ESG-related information.

• Engage with internal and external stakeholders to build awareness and support for our corporate sustainability and ESG initiatives.

Enhance

Enhance system capability to leverage best in class digital platforms to capture the required data in timely and accurate manner.

Ensure

Ensure that all required data sets related to company’s ESG sustainability commitments, including energy, renewable energy, greenhouse gas (GHG) emissions, water and packaging/waste metrics, are reviewed, analyzed, prepared and assured for submittal into reports such as the Company’s external Business, Environment and Social Governance (BESG) report, climate disclosures for the US Securities and Exchange Commission (SEC) and the EU Corporate Sustainability Reporting Directive, Carbon Disclosure Project (CDP), and the Sustainability Accounting Standards Board (SASB).

Establish

Establish ESG KPIs and goals.

Evaluate

• Evaluate a company's supply chain for ESG risks and opportunities.

• Evaluate processes, anticipate requirements, uncover areas for improvement, and develop solutions.

• Evaluate the governance structure and board diversity of companies.

• Evaluate the impact of environmental factors on a company's operations.

Execute

Execute ESG ratings improvement programs.

Help

• Help clients identify and escalate risks in order to act and communicate with integrity.

• Help to identify opportunities to enhance scores by developing expertise in ratings methodologies.

Identify

• Identify, analyze, and interpret patterns and trends in complex data sets.

• Identify and prioritize key ESG matters that are relevant to our business and stakeholders, and develop strategies to address them.

• Identify emerging ESG trends and their implications for businesses.

• Identify opportunities for improvements by and among the clients and/or companies.

Implement

Implement new and modified metrics, performance indicators and controls, to ensure compliance with forthcoming climate disclosure regulations in the U.S. and European Union.

Influence

Influence strategy and initiative prioritization leveraging data insights.

Lead

• Lead and grow an existing team of ESG Project Coordinators, Analysts, and Interns to meet the demand of clients and develop new services to meet market demand.

• Lead execution and project management efforts on client projects and workstreams, including market research, strategy formation, and content creation, such as conducting a multi-stakeholder materiality assessment.

• Lead global aggregation, evaluation, trending, analysis, and calculation of system wide S1, S2, S3 GHG emissions data for Ingredients, Packaging, Manufacturing, Distribution and Cold Drink Equipment across the system.

• Lead responses during third-party assurance of GHG emissions based on robust data analysis, calculations, and system GHG trends.

• Lead the development of ESG Reporting Services for all industries in alignment with, but not limited to, the following benchmarks, standards, and guidelines:.

Learn

Learn new methods, techniques, and software as needed to accomplish tasks and fulfill the needs of the organization.

Maintain

Maintain regular communication with R&R contacts, tracks and evaluates methodology and scoring updates, and conducts prioritization analysis.

Manage

• Manage and oversee ESG service delivery for clients, which may include self-performing and training the ESG team to perform services to expand the practice.

• Manage GHG emissions reporting including Scope 1, 2, and 3 emissions calculations, as applicable, for internal and external reporting.

• Manage processes and methods for calculating and reporting of Scope 1, 2 and 3 greenhouse gas emissions according to GHG Protocol and Science-based Target initiative.

• Manage relationships with key external stakeholders, including non-governmental organizations, industry associations, and regulatory bodies.

• Manage sustainability projects by scheduling meetings, following up with stakeholders, developing data collection documents, and summarizing reports.

• Manage the implementation of monitoring and evaluation plans for sustainability initiatives and develops processes to capture and share best practices across the organization.

Monitor

• Monitor and analyze industry trends and best practices in corporate sustainability and ESG to ensure that our efforts remain relevant and effective.

• Monitor and drive efficiency in the data management process, starting from data collection to qualifying the data for reporting progress against our commitments, both internally and externally.

• Monitor and ensure project deliverables and deadlines are met.

• Monitor and escalate risks in a timely manner such that corrections can be made to minimize the impact to the project.

• Monitor compliance with relevant ESG regulations and standards.

• Monitor of ESG incidents across the underlying investments in Hamilton Lane products and client portfolios.

• Monitor the progress of ESG initiatives and sustainability targets.

Offer

Offer support to business development professionals by supporting prospective client conversations and managing client relationships as they relate to ESG Services.

Own

Own and develop relationships, working with them to optimize and enhance our work product.

Participate

• Participate in all ESG related programs and activities, as required (this includes incident investigations, interviews, auditing, and assessment).

• Participate in ESG-related industry conferences and events.

• Participate in the development and implementation of our ESG reporting framework, including the disclosure and communication of our ESG performance to stakeholders.

• Participate in the evaluation of leading reporting frameworks and develop recommendations for the bank’s future reporting.

• Participate in thought leadership on emerging trends and issues.

• Participate in update calls with general partners, clients and prospects on ESG developments and best practices.

Partner with

• Partner with Investor Relations team to tell our ESG story, and share our achievements and measures of progress.

• Partner with marketing to develop strategies to penetrate the ESG market.

• Partner with the data management office, risk, audit, human resources, and other operational teams to expand the process by which data is gathered and stored ensuring ESG reporting is accurate and remains relevant for internal and external reporting.

Perform

• Perform all essential functions and aspects of the job including any other specific job requirements.

• Perform and oversee internal verification of territory submissions, ensuring mathematical accuracy, logistical coherence, and consistent application of the ESG Framework globally.

• Perform high level ESG position assessments with RES clients just embarking on sustainability or ESG programs.

Plan

Plan, support and provide quality control of the development of Data Management Plans for all data required to accurately track, monitor and report on sustainability metrics related to sustainability performance and reporting to ESG rating agencies.

Prepare

• Prepare and present results of analysis and reports to enable leaders to make important decisions.

• Prepare and scrutinize project data as required.

• Prepare briefings, talking points, and annual summaries of R&R engagement and trends for investor calls and meetings.

• Prepare documentation around our social metrics in support of internal and external audit and assurance.

• Prepare forecasts and analyze trends in general business conditions.

• Prepare presentations on evolving ESG topics for investment teams and portfolio companies.

• Prepare reports and presentations on ESG analysis for stakeholders.

• Prepare social trend analysis and is able to explain, articulate, and contextualize variances on a granular level using well-supported stakeholder feedback.

• Prepare synthesis of ESG data insights and periodically present to global network teams.

• Prepare the social audit package and presentation(s), ensures the Director has reviewed and approved all deliverables, and deliver social results to auditors.

Provide

• Provide assessments to relevant Investment Committee and join calls with co-investors to discuss findings and go forward plan.

• Provide key support to our pathways to Net Zero in support of BAM corporate goals, through data analysis and metric reporting needed for the Net Zero strategy and program.

• Provide recommendations for ESG performance improvements.

• Provide structure results to data analysis and calculations for the sharing of sustainability metrics with internal stakeholders and for external company reports.

• Provide timely, accurate and detailed responses to inquiries from clients and third-party assurance providers.

Refine

Refine, define and aggregate our ESG data (emissions, water, waste, social), track progress toward ESG goals, and support city and state regulatory compliance.

Report

Report progress against the Company Science Based targets in the annual BESG and CDP report,.

Research

• Research and analyze data that tracks key performance indicators and lead to the identification of performance gaps and best practices that enables industry leading levels of sustainability performance.

• Research and disseminate information on key ESG topics (DEI, climate risk, net zero, human rights, etc) in both written communications as well as in frequent all hands meetings and trainings to continue to build the knowledge and understanding internally at DigitalBridge and across the portfolio.

Review

• Review accuracy of information provided and respond to requests from management and vendors.

• Review and validate ESG data and disclosures.

Serve

• Serve as a strategic partner on systems work that can help simplify workflows and data collection activities.

• Serve as lead on data collection for ESG and sustainability activities.

Stay updated on

Stay updated on evolving ESG regulations and industry best practices.

Support

• Support and facilitate the development of the annual Corporate Sustainability Report through project management.

• Support cross functional business partners with analytical insights and problem solving.

• Support development of quarterly ESG board reports for DigitalBridge Board of Directors.

• Support engagement with ESG raters and rankers (R&Rs) by establishing deep knowledge of and proficiency with the Company's priority ESG R&Rs (e.g., MSCI, Sustainalytics, ISS, Bloomberg, Refinitiv, S&P Global (DJSI), GRESB, CDP).

• Support engagement with ESG ratings and rankings organizations.

• Support ESG Advisor and investment teams with ESG due diligence, including but not limited to the use of the internal ESG bespoke tool and the completion of materiality assessment.

• Support ESG reporting to various frameworks such as GRESB, ISS, MSIC, and Sustainalytics - assisting with assessment submissions and monitoring scores and data for accuracy.

• Support ESG system configuration related to improving the user interface, changes to indicators or KPIs, and user acceptance testing.

• Support Gap Inc Corporate ESG Strategy and Brand sustainability initiatives.

• Support ongoing ESG investor engagement by preparing materials for calls/events and maintaining an R&R contact list and communications log.

• Support RES technical teams in the identification and deployment of appropriate energy efficiency and sustainability measures.

• Support Corporate management systems, as defined in the Company’s Environmental and Health & Safety Corporate policies, by providing expertise and training to each of the Company’s Subsidiaries and the affected Departments.

• Support sustainability reporting and disclosure initiatives.

• Support the development and production of client proposals and practice marketing materials.

• Support the development of ESG-related policies and guidelines.

• Support the Director with the development of the ESG Framework and utilizes institutional knowledge as well as the relevant ESG frameworks and standards to recommend improvements.

• Support the implementation and monitoring of the portfolio companies ESG improvement plans and drive value change across the portfolio (this includes but is not limited to ESG onboarding, annual ESG assessment and ad-hoc ESG support).

• Support the reporting of social metrics to the board, investors, and other internal stakeholders by developing informational materials, visualizations, and presentations.

• Support transformation of the Brookfield Multifamily utilities function, primarily through support of budgeting, reforecasting and employing data analysis and reporting tools.

Take

Take ownership in leading the ESG team’s access to Metric Stream, including setup to target KPIs and maintenance to ensure accurate reporting.

Track

• Track ESG expansion performance using KPIs and financial metrics.

• Track MAA performance and prepare responses to ratings questionnaires.

• Track MAA scores and prepare data, metrics, and qualitative information for responses to R&Rs.

• Track progress toward our ESG goals.

Undertake

Undertake continual analysis of peer companies and other corporates to assess benchmark ESG positioning and disclosures, whilst identifying best practice.

Update

Update, on an annual basis, the SJW Group Sustainability Plan.

Use

Use aggregate data from multiple sources to create a complete analysis, improvement and/or recommendation(s).

Utilize

Utilize internal systems to accurately prepare data and metrics for disclosure in clients’ ESG and sustainability reporting.

Visit

Visit client sites as needed to meet with the client or oversee work of our project team.

Work with

• Work closely with the SEC Data and Reporting Analyst Works closely with assigned finance and accounting team members to ensure that all reported data has been generated, reviewed, and approved per the Company’s ESG governance.

• Work collaboratively with data analysts to collect, transform and calculate corporate carbon footprint and other ESG data for internal KPIs and dashboards, external ESG disclosure regulations, and the reporting for external voluntary commitments, such as CDP and SBTi.

• Work comfortably with employees at all levels, including up to executive level, in designing, executing, and communicating performance management initiatives and results.

• Work on additional ESG-related projects including water, waste and property-specific efficiency work and identify opportunities to innovate and reduce our environmental footprint across the portfolio.

• Work with a growing team across multiple locations to develop project deliverables and lead internal business development efforts.

• Work with and support the RES energy procurement executive and team, the Manager of Sustainability, and the RES executive team on monitoring and staying informed on emerging green building legislation, jurisdictional energy compliance reporting requirements and trends, and carbon pricing and cap and trade programs and trends.

• Work with the Business Unit Leader and Practice Leaders to develop a recruiting and retention plan of key resources to support ESG client services.

• Work with the Manager of Sustainability and internal RES technical teams and resources to develop and execute overall client strategy, program design, and implementation and lead program implementation including securing client buy-in and approval, tracking, execution, collaboration with internal and external stakeholders, program evaluation and refinement.

Write

Write and edit a variety of materials based on comprehensive research and analysis (e.g., sustainability reports and ESG disclosures, climate commitments, quantitative scoring/data models, key message documents, etc.).

Most In-demand Hard Skills

The following list describes the most required technical skills of an ESG Analyst:

1. Proficiency in ESG data analysis and interpretation.

2. Knowledge of sustainability reporting frameworks (e.g., GRI, SASB, TCFD).

3. Familiarity with ESG databases and rating platforms (e.g., Bloomberg ESG, MSCI, Sustainalytics).

4. Financial modeling skills for ESG risk assessment.

5. Competence in data visualization and reporting tools (e.g., Tableau, Power BI).

6. Understanding of carbon accounting and greenhouse gas emissions calculations.

7. Knowledge of international ESG regulations and reporting requirements.

8. Expertise in ESG integration in investment strategies.

9. Quantitative research skills for ESG performance evaluation.

10. Ability to conduct scenario analysis for ESG-related risks.

Most In-demand Soft Skills

The following list describes the most required soft skills of an ESG Analyst:

1. Strong analytical and critical thinking abilities.

2. Effective communication skills for conveying complex ESG concepts to diverse audiences.

3. Collaboration and teamwork to work with multidisciplinary teams.

4. Attention to detail for accurate ESG data analysis and reporting.

5. Adaptability to evolving ESG frameworks and standards.

6. Problem-solving skills for addressing ESG-related challenges.

7. Ethical mindset and commitment to responsible business practices.

8. Stakeholder engagement and relationship-building capabilities.

9. Time management and organizational skills for meeting tight deadlines.

10. Continuous learning and curiosity about sustainability trends and practices.

Conclusion

In conclusion, ESG analysts play a pivotal role in evaluating and promoting sustainable and responsible business practices. They contribute to shaping investment decisions and fostering a more sustainable future for businesses and society. Possessing a combination of these hard and soft skills enables ESG analysts to navigate the complexities of ESG analysis effectively and make meaningful contributions to corporate sustainability efforts.