Burnout for those in sustainable investing?

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Here’s a note from Neil Farrell:

The sustainable finance industry finds itself at the forefront of driving positive change in the world. However, it’s essential to address a crucial issue that many of my contacts are grappling with: burnout.

While my clients and contacts work tirelessly to align investments with environmental, social, and governance (ESG) principles, they often face challenges that can take a toll on their well-being. Two significant factors contributing to this burnout epidemic are inadequate resourcing within companies and mounting regulatory pressures. Firstly, companies need to recognise that successful sustainable investing requires adequate resources. The roles demand extensive research, due diligence, and engagement with stakeholders. Without proper support and staffing, the workload can become overwhelming, leading to burnout, like we saw in 2020.

Secondly, the growing regulatory environment adds another layer of complexity to their work. While regulations play a vital role in ensuring transparency and accountability, the constantly evolving landscape can create immense pressure on sustainable investing teams. Compliance requirements, reporting obligations, and monitoring processes demand significant time and effort, often stretching their limits.

To overcome these challenges and protect the well-being of the industry, it is crucial for organisations to prioritize the well-being of their sustainable investing teams. Companies should invest in additional resources, whether it be expanding the team, leveraging technology solutions, or implementing streamlined processes.
Furthermore, collaboration and knowledge-sharing among professionals can alleviate the burden.

We have to remember, that their work is vital in shaping a more sustainable and equitable world. Hopefully their passion and dedication are met with the necessary support and resources to prevent burnout and maximize impact.