Sustainability Recruitment in 2025: A Difficult Landscape for ESG and Private Markets Talent
As we move through Q2 2025, the sustainability recruitment landscape across private markets remains uncertain and uneven. While some firms are cautiously hiring, most are taking a wait-and-see approach. For ESG professionals and hiring managers alike, the mood is more pragmatic than optimistic.
Market Conditions: Cautious and Inconsistent
The start of the year brought short bursts of recruitment activity – particularly in January – but this quickly gave way to a slower, more hesitant market. Conversations with clients suggest that many are delaying hiring or reducing headcount expectations, particularly at mid-to-senior levels.
This reflects a mix of pressures:
Geopolitical instability and trade-related uncertainty
Regulatory complexity around CSRD, SFDR, and other ESG frameworks
Political pushback, especially in the US, where ESG has become a polarising issue
Economic caution as firms assess costs and preserve optionality
Private Markets: Divided on ESG Priorities
European private markets firms continue to take ESG seriously, but even here we’re seeing more scrutiny of ROI on sustainability roles. ESG teams are expected to demonstrate commercial value and contribute to tangible outcomes, not just produce reports.
In the US, ESG hiring is noticeably patchier. Some firms are quietly scaling back initiatives. Others are continuing only where regulatory or investor expectations demand it. The strategic, value-creation narrative that dominated ESG hiring in 2021–22 has been tempered by reality – and by politics.
Sector View: Real Estate Stabilising, Credit Holding Up
Real estate hiring remains slow after a tough 2024, though some signs of stabilisation are emerging. Several professionals predict that hiring in sustainable real estate may pick up in the second half of the year, albeit modestly.
Private credit, on the other hand, remains relatively resilient. It’s one of the few areas where ESG-related roles – particularly in underwriting and stewardship – are still being added.
Hiring Cycles: Shorter, Narrower Windows
Firms are taking their time to hire, yet candidates have little time to decide. The window of opportunity is both brief and sharply defined.
A Buyer’s Market for ESG Professionals
It’s undeniably a buyer’s market. Employers are being highly selective, with limited interest in candidates looking to pivot into sustainability or those with only adjacent experience. Even well-qualified professionals are being overlooked if they can’t demonstrate a clear, direct impact in relevant roles or sectors.
Right now, firms aren’t hiring for potential — they’re hiring for certainty.
Movement Post-Bonus: Quiet But Building
While post-bonus movement has started, it hasn’t triggered a wave of hiring. Many professionals are exploring the market cautiously, aware that opportunities are limited.
But the question remains: Where would they go?
For Job Seekers: A Time to Be Strategic
If you’re looking for a sustainability job in private markets, the current conditions demand a measured approach:
Be specific: Tailor your CV tightly to each role
Be realistic: Firms are not hiring generalists or “fast learners” right now
Network carefully: Most movement is happening through informal channels
Stay open: Consulting or short-term roles may offer a bridge until the market improves
This is not a market for broad outreach or speculative applications – it’s about targeting the few viable opportunities with discipline.
The Outlook: Rebuilding Slowly
There’s no clear inflexion point yet. Sustainability remains relevant, and regulatory pressure – especially in Europe – continues to drive baseline hiring needs. But firms are doing the minimum, not building out expansive teams.
Some green shoots may emerge in Q3, particularly if M&A activity increases and investment flows pick up. For now, however, both hiring and candidate mobility remain limited.
Final Thought: Sustainability Hiring Is in Holding Pattern
The shift in ESG and sustainability hiring is real – and it’s not just cyclical. Firms are reassessing what sustainability means in a commercial context. For professionals, that means recalibrating expectations and being prepared for a longer game.
If you’re a firm cautiously considering your next ESG hire – or a candidate navigating the current slowdown – we’re here to offer honest advice, not hype.