Faced with pressure from their investors and increasingly strict regulations concerning sustainable finance, asset management companies are structuring their CSR (Corporate Social Responsibility) officer role. These professionals, with their diverse profiles, are sought after both for their expertise and their persuasive skills.

Meanings Capital Partners, Argos Wityu, Ouest Croissance, Axa IM, and Sienna IM—all these asset management companies have one thing in common: they have recruited a CSR manager in the last eighteen months. While the consideration of non-financial issues by investment funds is not new, it has clearly accelerated. Faced with pressure from their own investors and increasing regulatory and reporting requirements, private equity professionals must structure their teams. “A few years ago, asset management companies had a very marketing-oriented approach to the CSR function,” notes Christophe Laville, principal at the recruitment firm Vauban Executive Search. “Now, it is essential to have a real strategy with a dedicated manager, especially for funds targeting institutional clients who integrate non-financial aspects into their requests for proposals.” "Headhunters have recently seen a growing demand for these sustainable finance experts, as Caroline Renoux, founder of Birdeo, a recruitment firm specializing in CSR and sustainable development jobs, testifies: " Investment funds entrusted us with initial assignments in 2016, after the signing of the Paris Agreement, but we have seen a real increase over the last two years ," she notes.

Diverse career paths

The profiles recruited are nonetheless extremely diverse, both in terms of seniority and career path. Some funds, generally positioned in the small or lower mid-cap segments, readily entrust this responsibility to a junior with less than five years of experience, who then works under the guidance of a partner. Others opt for more seasoned professionals who have specialized in CSR over the years. " The profession is recent, as are the dedicated training programs," explains Christophe Laville. "Many CSR managers began their careers in another role before training themselves out of a genuine interest in the subject. We thus find former analysts and account managers, or even former marketing managers. " Those who can demonstrate more than five years in this field are relatively few and therefore highly sought after. " Former consultants, whether from specialized firms or the ESG divisions of major auditing companies, are particularly in demand ," observes Caroline Renoux. Several recent moves illustrate this trend, such as that of Sarah Mathieu-Comtois, Sustainability Director at Meanings Capital Partners, who spent four years in PwC's sustainability department after working on these issues for a research center in the Middle East. Her counterpart at Argos Wityu, Jessica Peters, also came from a consulting background, having worked at the specialized firm Greenfish after joining the CSR team at NPRC, a Dutch river transport company. To support these project managers, some asset management firms, whose extra-financial approach is particularly advanced, are also hiring more specialized profiles. "We receive requests for junior staff in charge of extra-financial reporting," says Caroline Renoux. "Their role is to ensure regulatory compliance and to collect information from portfolio companies. Some funds are also looking to supplement their teams with very specific expertise, particularly in decarbonization." “This is a trend that is set to grow,” observes Christophe Laville: “ For the time being, most asset management companies are in the initial recruitment phase,” the headhunter notes. “But in the coming years, we will likely see the creation of a whole family of positions within the CSR function, with reporting analysts, climate specialists, and so on. ” Evolem, the family office of April’s founder, has thus recruited an engineer specializing in climate transition to join the “engagement” department headed by Ségolène de Montgolfier: “ My role is to manage the CSR strategy as a whole,” explains this former parliamentary assistant, who also worked for a consulting firm for non-profit organizations. “For more specialized expertise, I rely on internal specialists or partner firms. ”

"Investment funds entrusted us with initial assignments in 2016, after the signing of the Paris Agreement, but we have seen a real increase over the last two years." Caroline Renoux, Founder, Birdeo .

Priorities to be set

The primary mission of the CSR manager is indeed to define the asset management company's strategy, in conjunction with senior management: what are the objectives and actions to be implemented, which monitoring indicators to choose… These are all points to define for the asset management company, but also and especially for its portfolio companies, which need support in their transition. “ Our investment team has been trained in extra-financial analysis,” explains Ségolène de Montgolfier. “We intervene as a complement, and at their request, depending on the complexity and ESG issues, and at all stages of the transaction. We can also be contacted directly by a manager to address a specific point or refer them to a dedicated advisor. ”

Another key aspect of this role is the collection of non-financial data for portfolio companies and the preparation of dedicated reports for regulators and investors. “ Even though supporting portfolio companies is highlighted in job descriptions, the role remains very focused on due diligence and non-financial reporting,” cautions Caroline Renoux. “The job is less operational than in a corporate setting, which can deter some candidates. ” Finally, ongoing monitoring is essential to keep abreast of both regulatory developments and the analyses and recommendations of various expert groups. “The goal is to identify the most important issues and alert the teams to the points that need to be addressed as a priority,” explains Ségolène de Montgolfier. “This prioritization is complex but essential to avoid acting superficially .”

A true project manager, the CSR manager naturally masters the fundamentals of the subject. The United Nations Sustainable Development Goals, the principle of dual materiality, and non-financial valuation are all part of their daily vocabulary. But they must also be able to communicate their knowledge and convince sometimes reluctant stakeholders. " This profession requires, above all, interpersonal skills, with listening and persuasion abilities essential for supporting change ," explains Ségolène de Montgolfier. These are crucial assets for gaining the support of both finance colleagues and SME leaders.

A disparity in profiles and salaries

  • The diversity of CSR specialist profiles and the variety of their fields of intervention lead to large disparities in terms of remuneration.
  • According to recruitment agencies, a junior with two or three years of experience starts at around €45k. A slightly more senior profile, with at least five years in the field, can expect a salary range between €60k and €80k, while a CSR manager with more than ten years of experience can exceed €100k.
  • Private equity funds also offer access to carried interest, making their remuneration more attractive than that practiced in other branches of asset management.

Published by Coralie Bach for Option Finance, on September 21, 2023.