Bankers with ESG skills can fend off waves of layoffs, study finds


a wave of job cuts swept the global financial industry Barclays research shows demand for Environmental, Social and Governance (ESG) professionals unaffected, with continued job growth through 2022.

UK banking analysts, who used natural language processing to examine more than 200 million job listings, found that asset managers, asset owners, and banks were “struggling against a broader decline in employment, with all other sectors , continue to seek ESG skills and talent”. .

Findings suggest that building expertise is beneficial ESG strategyas part of World’s largest bank resorts to deep cuts in a more traditional corner of their business.

goldman sachs group last month embarked on one of its largest rounds of cuts to date, cutting about 3,200 positions. Morgan Stanley laid off his 1,600 employees in December, while Bank of America and others also resorted to smaller layoffs.

Many of the announced job cuts will return bank headcount to pre-pandemic levels and are consistent with the industry’s efforts to adapt to the pandemic. trading slowdown.

A company’s performance on ESG adoption tends to be a good indicator of future stock performance, not just its sustainability efforts, said Alexa Walls and Jason Goldberg, Barclays analysts behind the study. , and data scientist Adam Lauretig said.

They singled out BlackRock as a company with a strong interest in increasing ESG work. Goldman Sachs found a moderate level of interest.

“Companies with higher-than-usual interest in ESG adoption were more likely to experience subsequent rating improvements and enjoyed better share price performance two to three years after the date of publication,” they said. rice field.

The Barclays survey also found that the headwinds faced by ESG-adopting companies in the US, where Republican states have issued several bans on forms of investment, have weakened the financial industry’s commitment to ESG. indicated that it was not

Analysts at Barclays said: “While headlines question whether ESG is losing momentum, buy-side and sell-side alike appear to be convinced of the strategic relevance and future demand for ESG. It is,” he wrote.

Updated: Feb 18, 2023, 4:30 AM

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