Asset managers step up ESG expertise search amid war for talent

Written by Adam Cadle

03/05/2023

European asset managers looking to upgrade their ESG expertise are currently in a war for talent, according to latest research.

The research, conducted by Cerulli, showed that around 61% of European asset managers strongly agree or agree that there is a war for talent in the ESG sales domain. “Asset managers are seeing more demand for than supply of ESG talent,” Cerulli director of European institutional asset management research, Justina Deveikyte, said.

As the ESG market expands and products gain in sophistication, regulators and investors are demanding greater transparency and requiring expertise from asset managers. In response, managers are having to upskill existing employees or recruit talent.

According to the research, fund selectors increasingly want to see sustainability integrated into all areas of asset managers’ business and their decision-making processes. In addition, intermediaries are looking to asset managers for ESG support in many instances. This support ranges from helping to navigate the regulatory environment to assisting with communication with end investors.

“Several asset managers have commented that their products are less salable if they do not have the appropriate level of expertise, because investors now have a higher base level of expectation around ESG,” Deveikyte said. Some 63% of asset manager respondents in the UK and 59% in Germany view ESG capability as a very important or important enabler of fund sales. Overall, 59% of the asset managers in Europe strongly agreed or agreed that they will improve the ESG expertise of their sales teams via recruitment or training.

Nearly one-third (29%) consider improving their position as a leader in ESG a strategic priority for the next 12 to 24 months across asset classes. This includes hiring employees and upskilling existing employees.

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