More education and training is needed if the funds industry is to solve a potential skills shortage in the sustainable investment market, according to Funds Europe research.
The report, conducted in partnership with Caceis and entitled Governance and the Climate Risk Dilemma, found that 72% of respondents believe there is a potential shortage of climate risk specialists.
The report also found that more than a fifth of respondents (21%) have prioritised the development of an educational framework to upskill key employees across all functional areas.
Similar numbers cited the hiring of portfolio managers and analysts with specific expertise on climate risk (17%) and building expertise at board and senior management level (16%).
However, despite the probability that climate specialists will likely come with a premium, the survey suggests that firms should be doing more to improve the climate capabilities internally.
Our survey (Q14) shows that more than a quarter (26%) do not currently offer any formal training around climate.
And while more than a third (37.5%) offer general training on climate change and its impacts, only 13.5% provide training on the operational risks resulting from climate change.
The Funds Europe/Caceis research report can be accessed here