ESG salaries plateau as sector dynamics shift

ESG salaries have plateaued over the last 12 months as the talent pool has grown and prospective employers temper initiatives.

That was a key finding from Kaizen Recruitment's latest ESG and Responsible Investment Salary Guide, which also found superannuation funds to be offering the strongest salary packages.

Kaizen said this is because they have a vested interest as they need to ensure their investments are aligned to both member expectations and the need to see them last for the long haul, defying risks like climate change.

The talent pool has grown, with more professionals gaining relevant qualifications in the wake of things like mandatory sustainability reporting. Kaizen said many candidates it's seeing are coming from other sectors, bringing previous sustainability experience with them.

"The introduction of the Australian Sustainability Reporting Standards (ASRS) by the Australian Accounting Standards Board (AASB) has driven a notable increase in demand for sustainability reporting roles across sectors. In response, many organisations are engaging external consultants to support the initial implementation of reporting frameworks, ensuring compliance with emerging regulatory requirements and reporting timelines," Kaizen Recruitment's Simon Gvalda said.

"Additionally, capabilities in investment stewardship, data analysis, and carbon accounting are emerging as valuable skillsets. For roles within superannuation and funds management, deep investment knowledge, especially in private markets, remains critical as interest grows in sustainable alternatives beyond public markets."

As for salaries, these have plateaued following about five years of growth and high demand for candidates with ESG or sustainability expertise.

The largest salaries Kaizen is seeing at the moment are for director or executive-level roles, which are commanding packages anywhere between $270,000 and $500,000 a year. This is on the basis of between 18 and 25 years or more experience and includes superannuation but excludes bonuses.

A head of ESG role can command anywhere between $250,000 and $385,000 a year, based on 15 to 20-plus years' experience.

At the other end of the spectrum, a junior ESG analyst with less than three years' experience could earn as much as $90,000, while an ESG analyst with between two and five years' experience could get between $90,000 and $135,000.