Sustainable Finance Technical Skills and Competencies

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Sustainable Finance Technical Skills and Competencies

The introduction of the 12 Sustainable Finance Technical Skills and Competencies (TSCs) aims to bolster the Skills Framework for Financial Services by setting out specialised set of sustainable finance knowledge and abilities for the financial industry.

The Sustainable Finance TSCs cover a range of thematic and functional skills that financial sector professionals need to be equipped with to effectively perform their responsibilities in sustainable finance roles.

What is the Sustainable Finance Technical Skills and Competencies (TSCs)?

The Sustainable Finance TSCs include thematic topics such as climate change management, natural capital management, carbon markets and decarbonisation strategies management and taxonomies application, which will equip an individual with a broad understanding of sustainability issues. The TSCs also cover functional knowledge such as sustainability investment management, sustainability risk management, sustainable insurance, and re-insurance solutions and applications that are tailored for different financial sector roles.

Sustainable Finance Technical Skills and Competencies (TSCs)

Thematic Sustainable Finance TSCs
TSC	TSC Description
Carbon Markets and Decarbonisation Strategies Management	Lead organisation's strategy and policies in response to current and projected carbon policy, market developments and decarbonisation strategies, and provide support for the organisation and clients in their efforts to decarbonise and become net-zero
Climate Change Management	Synthesise information on climate change and climate policy developments to shape the organisation's strategies and policies, products and/or services
Natural Capital Management	Develop market research on natural capital and lead organisation's strategies and policies in response to natural capital policy and market developments, to support decision making and organisational dealings
Taxonomy Application	Analyse and shape organisation's strategy, policies, practices and relevant business activities in response to key domestic, regional and global taxonomies that classify green and transition economic activities
Functional Sustainable Finance TSCs
TSC	TSC Description
Impact Indicators, Measurement and Reporting	Analyse, monitor and report impact of sustainability actions and lead the organisation in setting impact mission and targets for the organisation or customers
Non-Financial Industry Sustainability Developments	Analyse, monitor and report impact of sustainability actions and lead the organisation in setting impact mission and targets for the organisation or customers
Sustainable Insurance and Re-Insurance Solutions and Applications	Develop new and/or existing sustainable insurance and/or re-insurance solutions which are aligned with international best practices and support customers in improving their sustainability performance over time
Sustainable Investment Management	Lead organisation's strategies on sustainable investment and implement sustainable investment concepts and approaches on portfolio management
Sustainable Lending Instruments Structuring	Structure key sustainable lending instruments, which includes bonds, loans, project and trade financing, derivatives, blended finance and develop incentive mechanism to encourage adoption of these instruments
Sustainability Reporting	Lead development of organisation's sustainability reporting and accounting policies and processes in line with regulatory requirements and international best practices
Sustainability Risk Management	Develop frameworks, strategies and policies for managing sustainability risks for the organisation to minimise and mitigate risks and the impact both upon and by the organisation
Sustainability Stewardship Development	Lead the development of the organisation's stewardship strategy, focus areas, policies and practices, and implement stewardship to achieve organisation's investment and sustainability goals

Who will require these Sustainable Finance Skills?

Banks, asset managers and insurers will have the flexibility to select the relevant TSCs according to their upskilling or hiring needs.

These TSCs may apply to:

Financial sector professionals in job roles within Sales, Distribution and Relationship Management, Product Solutioning and Management, Operations, Risk Compliance and Legal. Click here for examples of the applicable job roles.
Sustainable Finance professionals such as Chief Sustainability Officer, Sustainability Reporting and Investor Relations, Advocacy and Stewardship, Sustainability Product Specialists.

Discover the opportunities in Sustainable Finance in the video below.

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How can the Technical Skills and Competencies (TSCs) be used?

Training Providers and Financial Institutions can use the TSCs to design and develop training curriculum to equip the workforce with the relevant skillsets and address skills demand.
Individuals/Professionals can reference the specific knowledge and skills as a guide to upskill, pivot into or progress in the relevant financial sector's sustainability roles.