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What specific skills or knowledge areas should finance students prioritize to be competitive in the evolving landscape of sustainable finance and impact investing, considering the increasing importance of ESG (Environmental, Social, and Governance) #Fall25?

What specific skills or knowledge areas should finance students prioritize to be competitive in the evolving landscape of sustainable finance and impact investing, considering the increasing importance of ESG (Environmental, Social, and Governance)? #Fall25


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Rick’s Answer

Michaela,
My answer comes from 40+ years in finance and from sitting across the table from many entrepreneurs and thousands of investors. While technical ESG knowledge is important, there is one area of core knowledge that I believe many newcomers to the finance world underestimate, and in job interviews, it matters more than most realize: You must clearly understand, respect, and believe in the capitalist system you are entering.

I know that in today’s world, the word capitalism is sometimes spoken about as if it’s something negative or outdated. From my personal experience, nothing could be further from the truth. Capitalism, at its core, is very simple and very human: It’s when individuals take their own savings, their own risk, and their own sweat and build something they believe in.

That’s because it is their money on the line and the motivation to succeed is intense. Failure can mean financial ruin. Success can mean security for their family, jobs for others and innovation for society. That personal stake creates a level of discipline, efficiency, creativity, and accountability that no system run by detached state-run decision-makers can ever replicate.

By contrast, when enterprises are run without personal financial risk, where managers succeed or fail with no direct consequence, the natural human incentive to excel weakens. Over time, inefficiency creeps in. I’ve seen this repeated throughout my career. Our own city, county, state, and federal government are often good examples, but totalitarian states are the prime example. And who suffers under these institutions with little or no accountability? The citizens of these countries.

Here’s why these issues for sustainable finance and impact investing matter: My limited knowledge of every successful ESG sustainability or impact initiative tells me they must still stand on the foundation of capital efficiency, return on investment and long-term profitability.

The entrepreneurs and investors you will interview with believe deeply in this balance: doing well financially so they can do good socially and environmentally. I know they see profit not as a moral failure, but as the fuel that makes long-term impact possible.

When you interview, they will listen closely, not just to what you know about ESG metrics, but to how you think about enterprise, risk, ownership, and incentive. In my opinion they will want to know:
• Do you understand what drives the people writing the checks?
• Do you respect the system that made their success, and your future career, possible?
• Do you see sustainability as a partner to capitalism, not a replacement for it?

My heartfelt advice:
If you want to be competitive in sustainable finance and impact investing, learn ESG deeply, but also learn the philosophy of entrepreneurship, capital risk and incentive economics just as deeply. When you walk into an interview with successful capitalists, they will feel your understanding immediately. And that understanding often opens more doors than any spreadsheet ever will.

You absolutely can do great good in this field and lasting good is built on sound economic truth.
Rick
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Priyali’s Answer

Hi Michaela,

If you're interested in sustainable finance or impact investing, it's important to develop solid finance skills while understanding how companies impact the environment and society. Focus on learning financial statements, budgets, and risk management. Also, familiarize yourself with basic ESG concepts like carbon impact, fair worker treatment, and effective leadership. Being comfortable with tools like Excel is useful since ESG work often involves data analysis. Most importantly, practice thinking ethically and with a long-term perspective, as these fields aim to balance profit with positive impact. Building these skills early will prepare you for a career in this growing area.

If you're looking for specific courses, here are some suggestions, mostly online with a few college options:

For Finance Basics:

1. Introduction to Finance and Accounting on Coursera (Wharton School) - Beginner-friendly and great for core skills.
2. Finance for Everyone on edX (University of Michigan) - Explains money, markets, and investing simply.

For ESG and Sustainable Finance:

3. Introduction to ESG on Coursera (Deloitte or University of Pennsylvania) - Covers what ESG means and its importance.
4. Sustainable Finance on Coursera (University of Zurich) - Connects finance with environmental and social issues.
5. ESG Investing 101 by CFA Institute (Free) - Short and reliable for students.

For Data and Tech Skills:

6. Excel for Beginners on Udemy or Coursera - Essential for any finance path.
7. Intro to Data Analytics by Google Career Certificates - Beginner-friendly and useful for ESG data interpretation.

For Climate and Sustainability Basics:

8. Climate Change Basics by United Nations CC:Learn (Free) - Simple lessons to understand ESG context.
9. Introduction to Sustainability on Coursera (University of Illinois) - Easy-to-follow sustainability concepts for students.
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Andrés’s Answer

Take advantage of all the new technologies applied to finance, like big data and off course AI. Don't think only on the current landscape of finance but also on the possibilities for the future. You will need to get new capabilities to stand out. Finance social development will play a lore relevant role in the comming years.
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