Natural disasters, IPCC reports, social tensions within corporations, controversies, governance issues at general assemblies - all these extra financial topics are increasingly integrated into companies' strategic roadmaps and are gaining proportions in their valuation (90% of the valuation of the S & P 500 is intangible assets, chart below).

Source: Ocean Tomo Intangible Assets Market Value Survey (2021)

However, apprehending these sustainability topics requires training. Training is used to alert, inform, understand and, above all, act in line with sustainable development objectives (Paris Agreement, Convention on Biological Diversity, Human Rights, etc.).

If we observed a shortage of courses on sustainable development topic a few years ago, they are pullulating today: CSR (Corporate Social Responsibility), ESG (Social Environment Governance), Biodiversity, Climate, regulatory support. These are no longer confined to corporate stakeholders, but are also aimed more broadly at students, regulators and politicians.

Students

A few years ago, there was a lack of sustainable finance or environmental programmes in the curricula of major business schools. To address this, initiatives such as the Shift Project¹ now propose to put the ecological transition at the heart of all training courses, whether for engineering schools or business schools. The aim is to prepare students to respond to the sustainability challenges which their future employers will face.

Employees

Training is one of the pillars of companies' social strategy. Employee training is provided in a variety of ways: Health/safety, ethics, cybersecurity, skills development, energy management, etc. They make it possible to retain employees and also to attract profiles which are increasingly sensitive to CSR topics: 58%² of candidates declare today that CSR policy/training is a decisive criterion when choosing their future employer.

Senior management and corporate governance

After months of crises (COVID, war in Ukraine, inflation), CSR training has become increasingly central to corporate strategy. As an example, today, 85% of CAC 40 companies have a CSR³ Committee. Managers are thus trained in risk management, reputation, employee branding and human aspects.

Asset managers

Within investment companies, fund managers now have the opportunity to follow training programmes on ESG topics, such as the climate or the regulation of sustainable finance. The famous CFA diploma has adapted and offers a course dedicated to ESG expertise, as does the SFAF with ESG certification (in France). Many ESG advisory agencies also help investors navigate the depths of sustainable finance regulation (SFDR, Taxonomy, Article 29, CSRD). On their side, asset managers educate financial advisers, guiding them in their sustainable investment approach.

Policy makers

As for the political representatives, the new French MPs begin to understand the ecological transition challenges as presented by the scientists who drafted the IPCC and IPBES reports. The learning curve is still long and a framework for further training would certainly be beneficial. In Switzerland, parliamentarians are now attending lectures on climate change and biodiversity. The aim is to have a better understanding of the findings of scientific reports and NGOs and thus propose bills adapted to the international objectives.

At the end of the day, training on sustainability topics has become a matter for everyone and it is essential before further actions are taken on ESG. While employees in companies have been benefiting from it for longer, CSR/ESG training is now aimed at a broader audience: from students to Members of Parliament, to the management boards of companies and even asset managers. If this whole ecosystem benefits from training, it is highly likely that laws, business strategies and the behaviour of individuals will converge towards the sustainable development objectives set.

Sources:
¹ The Shift Project is a French association and think tank whose goal is to mitigate climate change and reduce the economy's dependence on fossil fuels.
² Carenews (In French only)
³ Russell Reynolds Associates (2021)

ESG/CSR training: a new framework for informing and acting?

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