4,000 to 5,000 new sustainable finance-related jobs will be required over the next decade, as financial institutions increasingly prioritise sustainability and build new capabilities to pursue emerging financing opportunities and manage ESG-related risks.
In Asia alone, such opportunities will be significant as close to US$1.7 trillion in infrastructure investments will be needed annually until 2030 to maintain growth while meeting climate goals. As such, financial institutions will play a critical role in facilitating and unlocking much needed financing for businesses to achieve their sustainability outcomes.
Amongst the largest demand drivers in sustainable financing are the energy, and construction and real estate sectors; and some of the key applications will be in the deploying of renewable energy, electricity distribution and the greening of commercial buildings.
Impact on the Singapore Financial Services Sector
In the Jobs Transformation Map (JTM) study, conducted by KPMG in Singapore, the sustainable finance market in ASEAN over the next decade is projected to reach S$4 to 5 trillion, and this will have far-reaching impact on Singapore’s Financial Services.
Initiatives to Support Upskilling
To serve the growing sustainable finance market in ASEAN, the Singapore government has set aside S$35 million in the Financial Sector Development Fund to support upskilling and reskilling, and develop specialists in sustainable finance over the next three years.
Impact on Hiring
These developments certainly provide exciting opportunities for financial services professionals. These professionals will have to upskill and reskill to transit to sustainable finance roles or to take on sustainable finance-related tasks as part of their augmented job roles.
Hiring managers of financial services companies will without doubt be on the lookout for professionals who have the skillsets listed in the Sustainable Finance Jobs Transformation Map. HR leaders and recruiters will prioritise those who have proven capabilities and experience, so as to fill roles that will undergo changes as well as new roles that will be created in sustainability risk and strategy. Such roles will become more prevalent in the coming years as financial companies prioritise sustainability.
Therefore as Singapore moves towards being a leading sustainable finance hub in Asia, the JTM report envisages “the potential for Singapore to capture a greater market share of Asean’s sustainable financing demand, particularly in areas such as carbon markets, blended finance and financing for transition activities, gives further upside to the estimated job growth.”
Reiterating the considerable potential in the horizon, Mr Chia Der Jiun, Managing Director, MAS, said, “ASEAN’s sizeable sustainable financing needs over the next decade present significant opportunities for Singapore’s financial centre to support the region’s transition to net zero. I encourage professionals to tap on the available support and deepen their sustainable finance capabilities to capture these opportunities.”
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