I have been hearing a lot about the ESG industry in the news lately; a center of political controversy. ESG stands for environmental and social governance, and these principles are at the core of private America’s attempt to get involved in the green transition. I wanted to learn more about the intricacies of the burgeoning industry, and I had the pleasure to have a quick interview with someone actually working for a major bank’s ESG unit, who has decided to remain anonymous.

Ammad (AZ): What drew you into working in the ESG industry?

ESG Expert: My college learning experience was one of the things that really influenced my decision to work in the field. Another one of the main factors was seeing how many driven people there were, wanting to do good in the world by helping the environment and more. Watching them I realized that you can have all the motivation and great ideas in the world, but none of it will actually be put into practice without the money. I wanted to help make sure that the money got to the right places and people so that they could carry out their ideas and make a difference. Institutions such as banks have the money to invest, and I wanted to work with banks to make clear investments into valuable projects that would make an impact. This would eventually lead me to work in the ESG industry

AZ: What is the ESG industry, in your own words?

ESG Expert: There are so many misconceptions of the ESG industry that most people struggle to fully understand it. Within banks, we actually regulate the use of the word ‘ESG’ since so many people don’t really understand what it means. The job of an actual ESG is to simply give advice to them in regard to their policy and investment portfolio. Companies come to ESG experts to get, or find ways to improve their ESG rating. An ESG rating is given to a company or institution based on a certain scale of its sustainable and ethical performance. Meanwhile, ESG funds are meant to invest money in worthwhile projects that are trying to make the world more sustainable, getting money to the right places. The real goal of the ESG industry is to transform polluting industries into becoming more sustainable.

AZ: What did the market for ESG’s look like when you first got into the industry?

ESG Expert: Around 15-20 years ago the ESG industry virtually didn’t exist. It has just gained prominence in the last couple of years, with many institutions hopping on the bandwagon. The ESG rating didn’t exist until a year and a half ago. There are still a lot of improvements to be made within the industry itself, and not a lot of help to do so.

AZ: What are some successes, or things you have found great about working in the industry?

ESG Expert: Managing hundreds of hedge fund firms, and sending them ESG ratings, as well as giving them information on how they compare to other industries has been great. There is a real sense of competition and a desire to improve their rating within the firms, which I hope is translating into real world change.

AZ: How do you feel about ESG being seen as a center of controversy and political issues, rather than a way to help everyone?

ESG Expert: I feel like the majority of people who are pushing against the ESG industry are simply afraid of their jobs. Blue collar workers, such as truck drivers, fear that they will be out of work as the world becomes more sustainable, but the transition won’t really affect them. Truck drivers, for example, will still be needed for their skill, even if the fuel source of their vehicles is different.

AZ: How do you think these problems can be fixed?

ESG Expert: In order for the ESG industry to improve itself and its image, there has to be more diversity of thought, which is already increasing within the industry. ESG funds are now being managed better to grow with new voices, and are looking into more new and exciting ideas to aid in the sustainable transition. People also have to accept the fact that ESG funds will lose money, their main purpose is to do good.

AZ: How do you feel about the future of the industry, in general, will it grow or decline?

ESG Expert: You have to understand that the decision makers, and fund leaders in the ESG are the ultra-wealthy who have that kind of money at their disposal. Bringing new voices into the industry will help improve the appeal and bring new ideas in. The ESG industry is still improving hugely, only a couple of people were working in the industry until very recently, and it has exploded since then. I feel we have the resources and the tools to continue to improve, and put infrastructure in place that will really help us transition into a more sustainable world.