Sustainability (ESG) professionals & Sustainability Reporting

As COP29 has just concluded in Baku, Azerbaijan, the need to lead, inspire, and collaborate for climate action is more pressing than ever. Business and political leaders must take decisive steps to shift toward a resilient, clean economy and work to phase out fossil fuels for good. As I write this article, we are breaking the limit of 1.5°C of global warming above pre-industrial levels. That means we are moving into a dangerous territory for humanity and the planet by crossing irreversible tipping points. According to the Sustainable Development Goals Report 2024, only 17% of the SDG targets are on track to being achieved globally by 2030. 

In recent months, I have noticed a surge in job ads for ESG (Environmental, Social, and Governance) and CSRD (Corporate Sustainability Reporting Directive) experts or other sustainability experts titles. One issue is the growing number of individuals calling themselves “ESG, CSRD, or Sustainability experts” without having the necessary experience or qualifications. While enthusiasm for sustainability is essential, true expertise requires a strong foundation in formal education and practical experience. Some studies indicate that true ESG expertise demands at least eight years of practical experience and formal sustainability training. Unfortunately, underqualified professionals with little background are rebranding themselves as ESG experts, contributing to what is called ESG "competence greenwashing." This phenomenon results in poorly informed decisions that can harm both companies and the broader sustainability agenda. Many organisations are producing sustainability reports merely to satisfy regulations, not out of a genuine commitment to sustainability. This has contributed to a surge in greenwashing, where companies make exaggerated claims about their environmental impact, often with little substance behind them.

With the global push for green growth intensifying at the government level, alongside the rising importance of sustainable finance, ESG investing, and sustainability reporting, the demand for qualified sustainability and ESG professionals has skyrocketed. However, many organisations lack in-house sustainability expertise, and the limited availability of fully trained subject matter experts for short-term recruitment has created a significant supply-demand imbalance.

As a result, organizations often resort to interim measures, such as adding terms like “ESG,” “sustainability,” “climate,” or “environment” to existing job titles. Unfortunately, these newly minted “sustainability experts” frequently have little to no substantive experience in the field, with their roles often confined to communications or marketing functions. Alternatively, some organizations appoint high-profile individuals to positions like “Chief Sustainability Officer,” “Head of Sustainability,” or “Head of ESG.” While tasked with coordinating sustainability efforts and engaging external stakeholders, these roles are often similarly rooted in communications and marketing rather than in-depth ESG risk assessments, impact monitoring, or sustainability implementation.

Aggravating this challenge, many individuals begin labeling themselves as climate, ESG, or sustainability “experts,” “leaders,” or “professionals” after completing a few short introductory courses. These programs, often marketed with misleading titles such as “certified expert” or “sustainability leader,” contribute to confusion about what constitutes genuine sustainability expertise and further blur the lines of professional qualification in this rapidly growing field.

To address this, there needs to be greater clarity and control about what sustainability expert roles entail. For example, professionals in this field need expertise in relevant areas, such as finance for ESG risk analysts. Sustainability is a broad topic, and true expertise requires deep knowledge in specific aspects, much like in other professional fields. Raising the bar for ESG expertise ensures the field remains credible and impactful.

Key Points:

• The rise of greenwashing stems from companies prioritising compliance over meaningful sustainability efforts.

• A growing number of individuals are branding themselves as ESG, CSRD, or Sustainability experts without adequate qualifications or experience.

Sustainability reports alone will not save the planet, but sustainability practices will. Reporting is important, but it is a means to an end, not the goal itself. The real aim is to integrate sustainability into our decisions, strategies, and everyday actions as individuals, companies, and governments. Efforts to reduce greenhouse gas emissions and enhance climate resilience must accelerate, particularly through education. Sustainability reporting involves transparently communicating a company’s ESG performance, progress toward goals, and risks to stakeholders (investors, regulators, customers, employees, etc.). Such reporting supports stakeholders in understanding how companies address critical sustainability challenges. Key objectives of sustainability reporting include:

• Enhancing transparency

• Building trust

• Improving internal processes and sustainability practices

• Providing reliable and comparable information

• Enabling informed stakeholder decisions

• Supporting EU goals

• Fostering sustainable business practices

Starting in 2025, many companies will be required to report on the environmental and social impacts of their activities, verified by third-party auditors. This third-party assurance enhances transparency and accountability. Reports should address the role of sustainability in company strategy, policies on sustainability issues, significant potential or actual negative impacts, and key sustainability-related risks. This process fosters transparency and aligns corporate practices with sustainability goals. CSRD’s requirements are bringing major changes, prompting companies to adapt their strategies, governance, sustainability focus, and reporting practices. This trend has led to an increased demand for sustainability experts. However, this has also attracted individuals with limited experience in the field. When companies embed sustainability, it becomes a business transformation accelerant versus what it is in many other organizations—a reporting or accounting exercise. Embedded sustainability integrates sustainability across all business units, especially core functions and workflows, making it part of the corporate DNA and daily operations.

This raises the question: How many companies are genuinely committed to sustainability versus viewing it as merely another checkbox in corporate reporting?