Sustainable finance is rapidly shaping the future of the Financial Services (FS) sector in Singapore. As the nation commits to the Finance for Net Zero (FiNZ) Action Plan to support net-zero transition and decarbonisation activities across Asia, finance roles are evolving in tandem.

This underpins Singapore’s ambition to become a global hub for sustainable finance, enhancing its competitiveness and prestige to lead and originate financing for transition activities region-wide. Such initiatives also complement government efforts to develop Singapore as a leading carbon services and trading hub in the region, strengthening Singapore’s competitiveness in regional and global sustainable finance markets.

Such a shift necessitates a deep integration of sustainable finance principles across all finance jobs, from investment banking to risk management. Traditional FS roles such as portfolio managers and financial analysts are already starting to incorporate sustainability goals into their daily tasks, reflecting broader transition goals. However, there is more to do to ensure Singapore can keep up with regional and global trends that are racing ahead, including creating new related jobs and amplifying resource-allocation to augmented job sets.

This guide will explore the potential of the sustainable finance sector to boost the profile of Singapore’s FS sector, and how such changes will affect job roles and requisite skills respectively.

Increase in Demand for Sustainable Financing

ASEAN demand for sustainable financing is estimated to grow at a steady rate over the next ten years, particularly in six key sectors: Energy, Construction and Real Estate, Manufacturing, Transportation, Utilities, and Agriculture. This growth is expected to be driven by sustainable investment needs in renewable energy, low carbon fuel alternatives, zero or low carbon vehicles, carbon capture technologies, green buildings, and circular economy – all of which Singapore’s FS sector has the potential to spur transformative growth in. Singapore’s role as an asset management hub will also develop concurrently, potentially contributing to the creation of new job roles in sustainable finance.

Global Regulations and Standards to Enable the Growth of Sustainable Finance

The international landscape of sustainable finance is rapidly evolving with global regulators such as the International Sustainability Standards Board (ISSB) setting stringent standards to ensure that financial activities contribute positively to environmental sustainability. In response, Singapore’s FS sector is adapting to these new norms by adopting specific guidelines for banks, insurers, and asset managers – ensuring that all sustainable finance activities meet international best practices and compliance.

In the immediate short-term, regulators are expected to focus on best practices in environmental risk management to help companies transition to new sustainable finance standards and norms, while grappling with questions over what sustainable finance even is. This regulatory shift is crucial for maintaining the integrity and efficacy of sustainable finance products and services, and will continue to evolve alongside best practice in transition planning and environmental risk management.

Technological Innovation for Sustainability-related Tasks

Technology that aids the improvement of productivity of the sustainable finance sector has been deployed. Machine learning (ML), Artificial Intelligence (AI), and blockchain technology are just some of the technologies revolutionising the way financial institutions (FIs) assess and manage environmental risks, while also potentially creating savings in manpower and resources for financial institutions. From streamlining carbon footprint assessments to enhancing the traceability of sustainability investments to strengthening the credibility of sustainability reports, adoption of such advancements will impact FIs in varying ways, dependent on respective organisational willingness and capability.

Moderate to High Impact on Finance Sector Jobs

The evolving landscape of sustainable finance in Singapore is reshaping the FS sector, necessitating a shift in job roles and functions. As sustainable finance skills become integral to financial services, job roles will need to undergo significant transformations to incorporate sustainability considerations into their workflows. These new roles will need to adapt to changing investor preferences, sustainability trends, and regulatory requirements, and require the adoption of new skills or competencies in the process.

One of the job roles expected to be highly impacted by the addition of sustainable finance-related tasks are the Portfolio/Investment/Fund Management roles. These positions will undergo considerable augmentation as they adapt to incorporate sustainability targets, metrics, and outcomes into the investment decision-making process. Professionals in these roles will need a deep understanding of sustainability factors and their material impacts and be proficient in the following skills: 

• Impact Indicators, Measurement and Reporting
• Sustainable Investment Management
• Non-Financial Industry Sustainability Developments
• Sustainability Stewardship Development
• Carbon Markets and Decarbonisation Strategies Management
• Climate Change Management
• Taxonomy Application

Another job role expected to be moderately impacted is the Client Investment Performance and Reporting job role. These roles will now require professionals to include sustainability outcomes, such as sustainability ratings and carbon footprints, in their investment reports and fund prospectuses. Skills such as Impact Indicators, Measurement and Reporting, and Taxonomy Application will be necessary to document and classify investments based on their contribution to sustainable outcomes.

Moderately and Highly Augmented Job Roles That Require Redesign and New Skills

The shift towards sustainable finance is creating a need for substantial redesign of existing FS jobs and the cultivation of new skills. Professionals in the financial sector must adapt to incorporate sustainable finance principles, which may require an understanding of new regulatory frameworks, sustainability reporting standards, and sustainability investment strategies.

Individuals in the Risk, Compliance and Legal field, for instance, will face moderate to high augmentation due to the need to incorporate sustainability risks across multiple areas of work as well as adapt and define suitable sustainability risk management strategies.

Conversely, Support functions (e.g. Accountancy, HR, Technology) will have low to moderate augmentation needs as the changes made to their fields will be mainly infrastructural, such as the adoption of new platforms for sustainable finance and supporting sustainable finance talent.

Additionally, new jobs are expected to be created to support sustainable finance and its related activities in Singapore over the next ten years. While, based on existing analysis, no existing jobs roles are expected to be made obsolete as a result of prevailing trends.

The transition to sustainable finance is generating a variety of new job roles focused on merging financial expertise with sustainability goals. Key emerging positions include:

• Sustainability Risk Manager: A dedicated sustainability risk job role can be created as this requires deep technical knowledge on how to assess sustainability risk and long-term financial performance, and subsequently integrating these risks into the FI’s Enterprise Risk Management (ERM) framework.


• Sustainability Strategist: This stems from FIs’ need for a dedicated and specialised central position to shape sustainable finance strategies, drive financial outcomes, and operationalise / develop capability to deliver on enterprise level sustainability strategy and sustainability-related risk management requirements. These considerations will need to be embedded at the client, product and transactional level.

As the sustainable finance sector continues to evolve, professionals must develop a comprehensive set of skills to stay relevant. These essential skills are crucial for integrating sustainability into financial practices, meeting regulatory requirements, and responding to investor demands. The following key competencies will be indispensable for financial professionals in this sector:

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.

Sustainable Investment Management

Lead organisation’s strategies on sustainable investment, and implement sustainable investment concepts and approaches on portfolio management.

Non-Financial Industry Sustainability Developments

Synthesise sustainability-related risks, opportunities and market developments of the non-financial industries, and their impact and application to the organisation and the financial sector.

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.

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.

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.

By mastering these skills, financial professionals will be well-equipped to navigate the complexities of sustainable finance, ensuring their relevance and effectiveness in driving positive environmental and financial outcomes in a rapidly evolving sector.