ESG in Finance: Insights from Odin Partners

Environmental, Social, and Governance (ESG) strategy is quickly becoming a core focus within the financial services industry. According to James Hext at Odin Partners, the growing importance of ESG is not only reshaping the way banks operate but also how they attract talent and position themselves in the market.

ESG Now Central to Bank Strategy

Odin Partners has observed that ESG is no longer a peripheral consideration for banks, it is becoming embedded in core business strategy. From enhancing public perception to attracting top talent, especially from younger generations, ESG initiatives are now a key factor in long-term growth and transformation.

Talent Driven by Purpose

Candidates, particularly junior professionals, are placing increasing value on a firm’s purpose and values. Beyond compensation, job seekers are paying close attention to a bank's social and environmental commitments, which can influence their choice of employer. For banks, this makes a strong ESG profile a competitive advantage in attracting future leaders.

 Positive Movement Across the Sector

Odin Partners has seen several financial institutions take the lead with sustainability-focused initiatives, including community investment, renewable energy projects, and social impact campaigns. These programs are beginning to create real opportunities for internal mobility and new specialist roles.

ESG in Recruitment: Advice for Candidates

Odin Partners encourages candidates to be proactive during the interview process by asking informed questions about a bank’s ESG agenda. While deep expertise in ESG isn't always necessary, showing awareness and interest can help create a more meaningful conversation with potential employers.

The Future of ESG Hiring

Looking ahead, Odin Partners expects ESG to shape the finance recruitment landscape significantly. Banks are expanding their ESG advisory functions and redefining their hiring strategies to include sustainability-focused talent. The firm anticipates that ESG considerations will soon be standard across all investment and hiring decisions in finance.