As regulatory bodies, investors and consumers demand greater accountability on sustainability, the role of Enterprise Risk Management (ERM) is rapidly coming to the fore.
This is a key trend we’ve seen in 2025 so far: ESG (Environmental, Social and Governance) and climate risk disclosure regulations are reshaping how organisations assess risk, which in turn impacts who they need to hire to stay compliant and competitive.
For companies building or scaling their risk functions, this shift is creating new challenges, new skill requirements and new expectations.
Here’s what’s changing, and what it means for enterprise risk hiring.
🌍 ESG and Climate Risk: from peripheral to core
A few years ago, ESG-related risks were often managed by sustainability teams in parallel to core risk functions. But as reporting regulations like the EU’s CSRD, SEC climate disclosure rule and ISSB standards come into force, ESG and climate risk are now central risk issues - affecting financial performance, legal exposure and brand reputation.
What this means for ERM teams:
- ESG risks must now be quantified, reported and integrated into enterprise risk registers.
- Risk leaders are increasingly involved in cross-functional collaboration with legal, finance, compliance and sustainability teams.
- Boards expect clearer articulation of climate and transition risks; not just from ESG leads, but from Chief Risk Officers and ERM professionals.
👥 The Skills Gap: What Employers Are Looking For
Organisations are now looking for risk professionals with a hybrid skill set: those who understand traditional risk frameworks, but can also speak the language of ESG, data assurance, and stakeholder impact.
Key skills in demand include:
- Experience incorporating climate scenarios into enterprise risk assessments
- Familiarity with sustainability reporting frameworks (TCFD, ISSB, CSRD, etc.)
- Ability to engage with non-financial metrics and integrate them into ERM dashboards
- Strong communication and stakeholder engagement capabilities
- A systems-thinking approach to identify interconnected risks across ESG domains
🔄 The Evolving Structure of ERM Functions
In response to these pressures, organisations are rethinking their risk operating models. Some are embedding ESG risk specialists within ERM teams, while others are creating new hybrid roles such as "ESG Risk Manager", "Climate Risk Analyst", or "Sustainability Risk Lead."
We’re also seeing:
- More collaboration between ERM, ESG and Internal Audit
- Growth of dual-reporting lines to CROs and Heads of Sustainability
- Increased demand for data-driven ERM platforms that can handle climate and ESG data
🔍 The Role of Specialist Recruitment
Navigating this evolving talent landscape isn’t easy. Candidates with both deep risk knowledge and ESG fluency are in short supply and in high demand. That’s where a specialist recruitment partner can make all the difference.
At Leonid, we help clients:
- Identify transferable skill sets from adjacent fields like ESG consulting or financial risk
- Benchmark salaries and expectations in a rapidly shifting market
- Design job specs that reflect current and future needs
- Build diverse, future-ready risk teams equipped for ESG scrutiny
Need help hiring ERM professionals with ESG expertise?
Get in touch with Adam Bond for a bespoke talent intelligence audit, market data and access to exceptional talent.
