ESG talent trends: Hiring for the green economy amid backlash

In 2024, hiring trends around Environmental, Social and Governance programmes were shaped by both increasing demand for green talent and a growing backlash against ESG initiatives.

Yet, despite intensifying political and financial backlash in parts of the world, the global march towards ESG integration continues – albeit more discreetly.

Are employers scaling back ESG efforts?

Between 2019 and 2022, ESG hiring witnessed a meteoric rise as firms scrambled to meet investor and regulatory demands.

Neil Farrell, founder of recruitment firm Farrell Associates, described 2021 as “explosive,” noting:

It was two years’ worth of hiring done in one year.

But this momentum slowed markedly in 2023.

Sophia Deen of Bruin Financial attributes the slowdown to macroeconomic uncertainty and a spike in greenwashing concerns. Businesses became more cautious and reassessed their ESG commitments and hiring plans.

This cooling trend was particularly noticeable in the US, where political actors have mounted aggressive campaigns against ESG investing.

For example, Republican lawmakers in states such as Texas accused asset managers like BlackRock of boycotting fossil fuels. This purportedly led to billions in asset withdrawals and eventually forced firms to pull back on ESG hiring.

“Everyone who is exposed to the US has at best frozen but most are rowing back,” Farrell said.

Globally, the numbers reflect this caution. ESG fund inflows in Europe plummeted from US$527 billion in 2021 to just $49 billion by mid-2023. In the US, meanwhile, sustainable funds recorded nearly $9 billion in net outflows.

Critics label the ESG movement as “woke capitalism,” leading firms to distance themselves from terms such as Diversity, Equity, Inclusion and sustainability. Some companies have also rebranded or scaled back ESG efforts due to fears of political controversy or consumer boycotts.

Anti-ESG legislation also proliferates in the US, with over two-thirds of states proposing such laws and half passing them.

Read: How Singapore is 'green by design'

A quiet resurgence: ESG hiring today

Behind the scenes, however, ESG hiring efforts haven’t stopped. They simply became quieter than before. In fact, ESG hiring grew in 2024 – fuelled by continuing commitments to sustainability – despite the backlash against ESG principles creating a complex hiring landscape. Companies that understand risk still view ESG as vital for long-term resilience and a crucial strategy for attracting top-tier workers.

The green economy – for all the accusations hurled against it – remains one of the fastest-growing sectors globally. According to the International Labour Organization, it has the potential to generate up to 24 million jobs by 2030.

The demand for qualified ESG professionals is, in fact, outpacing supply. LinkedIn’s latest Global Green Skills Gap report [pdf] found the demand for green talent rose by 11.6% from 2023 to 2024, yet supply grew only by 5.6%. By 2030, 1 in 5 jobs may lack the necessary green expertise, but by 2050, that figure could balloon to 1 in 2.

Sue Duke, vice president of public policy and economic graph at LinkedIn, warned:

Every single climate goal is at risk if we don’t have a workforce ready to generate the change we urgently need.

Job seekers with green skills are already seeing massive advantages – globally, they are hired 54.6% more often than the general workforce. In the US and Ireland, that figure exceeds 80%.

Last year, 67% of companies added full-time ESG staff to manage sustainability initiatives, compared to the heavier reliance on external consultants seen in previous years, data from EnableGreen [pdf] revealed.

Companies are also increasingly focused on specialised roles in areas such as ESG compliance, renewable energy, and sustainable finance.

The ongoing war for green talent

A quieter but more determined push to embed sustainability deeper into corporate strategies remains underway. This shift has profound implications for HR departments worldwide, which are now tasked with identifying and nurturing a workforce capable of steering businesses through the next phase of the green economy.

Industry demand is surging particularly in utilities, where 23.1% of postings require green skills, and construction (20.6%).

Sustainable procurement has become the fastest-growing green skill globally, increasing by 15% in the past year. Technology and media saw a 60% spike in green talent demand, further underlining the breadth of the green hiring boom.

The problem is that there simply aren’t enough trained professionals to meet these needs. Apart from that, the green workforce still has a glaring gender gap: only 10% of women possess green skills compared to 17% of men, despite a higher growth rate in green upskilling among women.

Read: When AI meets sustainability

There may be hope in young, up-and-coming talent, however. Generation Z is believed to be reshaping the talent landscape by bringing stronger values-based expectations into the job market, not the least of which, in the green economy.

These candidates are purportedly vetting employers’ ESG track records even before applying, and that they prioritise environmental responsibility, workplace diversity, and social impact.

All this makes ESG not just a compliance issue, but a talent magnet.

Companies therefore need to offer more than just competitive salaries. A well-communicated ESG strategy can differentiate employers in the battle for top talent.

Companies like Eileen Fisher exemplify this shift. The fashion brand has not only committed to using fewer materials and collecting used clothing for recycling, but it also actively encourages consumers to buy less. The firm aims to be 100% sustainable and is transitioning to organic and regenerative raw materials like cotton and wool.

As Ioannis Ioannou, associate professor at London Business School, argues, ESG must evolve beyond branding.

“Retreating further won’t work. Nor will defensiveness,” Ioannou said.

What’s needed is a deeper recalibration … tying sustainability more convincingly to core business outcomes – innovation, talent, and resilience.

The HR playbook: Strategies to attract and retain ESG talent

Look beyond traditional resumes: ESG roles are multidisciplinary and may come from backgrounds as wide-ranging as data science, environmental law, and communications.

Upskill from within: Companies like Unilever and DBS are investing in sustainability academies to train existing staff.

Partner with universities and NGOs: These alliances help build pipelines of ESG-ready candidates.

Promote purpose in employer branding: Gen Z and Millennials are drawn to meaningful work aligned with social and environmental impact.

Embrace AI in hiring: New tech tools are helping match candidates with niche ESG roles, especially in areas such as carbon accounting and circular economy strategy.

Quiet resolve, clear direction

ESG may no longer be the headline act it once was, but the show is far from over. Amid backlash and political pushback, the world’s transition to a green economy is quietly gaining ground. For HR leaders, the challenge is in mapping out this new terrain – where talent, not just policy, will be the real engine of change.

Whether it’s battling skill shortages, addressing gender imbalances, or attracting the next generation of workers, hiring for the green economy will remain integral to the future of business.