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In recent years, ESG (Environmental – Social – Governance) has become one of the most talked-about concepts in the business community. From global corporations to medium- and small-sized enterprises, ESG is no longer an "option” but has become a "standard” shaping long-term development strategies.
Especially as investors, shareholders, and customers place increasing importance on social responsibility and transparency, businesses need leaders who can embed ESG into the DNA of corporate governance. This is where Executive Search – the recruitment of senior executives – must evolve to adapt.
1. The ESG Trend in Corporate Strategy
1.1 ESG as a Global Priority
Over the past decade, ESG has emerged as a new benchmark for sustainable development. Not only financial institutions, but also governments and investors view ESG as a crucial factor for evaluating the long-term potential of companies.
According to PwC, 79% of global investors say ESG plays a significant role in their investment decisions. In Vietnam, the Government has also introduced various policies to encourage businesses to adopt green growth models.
Investors and governments now regard ESG as a vital measure of corporate capability.
1.2 Benefits of ESG for Businesses
Adopting ESG practices brings not only reputational advantages but also financial benefits:
- Attracting capital from sustainable investment funds.
- Strengthening customer and partner trust.
- Improving governance efficiency, while reducing legal and environmental risks.
1.3 ESG Case Studies
- Unilever: Known for its Sustainable Living Plan, achieving profit growth while cutting carbon emissions by 50%.
- Vinamilk: Implementing renewable energy, investing in organic dairy farms, and elevating its brand to the regional level.
2. The Demand for Leaders with an ESG Mindset
Businesses cannot realize ESG goals through policies or reports alone – the key lies in people, especially leadership.
2.1 Characteristics of ESG-Minded Leaders
An ESG-driven executive does not focus solely on profits but also weighs social and environmental impacts in every decision. They must have:
- A systems-thinking mindset with a long-term perspective.
- Inspirational leadership skills to align employees with sustainability goals.
- The ability to engage with diverse stakeholders.
ESG leaders balance profitability with social and environmental responsibility.
2.2 Industries in Need of ESG Leadership
Certain sectors have particularly urgent needs for ESG-minded executives:
- Finance & Banking: Green risk management, sustainable credit.
- Energy & Manufacturing: Emission reduction, clean technologies.
- Technology: Developing solutions that enable green transformation.
3. How Executive Search is Evolving
Traditionally, Executive Search focused on assessing financial management, market expansion, and growth performance. But in the ESG era, this approach is outdated.
Today, selection criteria must expand to include the ability to integrate ESG into overall strategy. Strong candidates must not only demonstrate leadership skills but also show vision for sustainable growth, transparency in governance, and commitment to social responsibility.
Executive Search now incorporates ESG as a core dimension in leadership recruitment.
Recruitment processes are also changing. Beyond standard interviews, candidates may face ESG-related case scenarios to test decision-making. Executive Search firms increasingly use ESG mindset indices as an additional screening measure.
HR consultants now play a more critical role than ever: not just "finding the right person” but also advising businesses on building ESG leadership pipelines, ensuring a future-ready pool of successors.
4. Challenges in Finding ESG Leaders
Despite rising demand, finding ESG-driven executives is not easy:
- Limited candidate supply: Few leaders in Vietnam have direct ESG experience.
- Difficult assessment: ESG mindset cannot be measured by CVs or past achievements alone.
- Expectation gaps: Businesses set high ESG expectations, while candidates may not yet be ready to transform business models.
The supply of ESG leaders remains far below business demand.
5. New Approaches and Solutions for Executive Search
To overcome these challenges, Executive Search must adopt integrated solutions:
- Leadership Development: Businesses should invest in ESG training for current management to close gaps and nurture future ESG leaders.
- Expanding Candidate Pools: Instead of limiting searches to the same sector, companies can consider executives from other industries with a sustainability mindset, or even from international markets – a strategy already used by global corporations.
- Leveraging Technology: AI and big data can help analyze candidate profiles and predict cultural fit with a company’s ESG agenda. Online assessment platforms also enable more objective evaluation of ESG leadership skills.
Businesses must combine training, broader searches, and technology to find ESG leaders.
In this context, professional Executive Search firms like HR2B play a vital role. With decades of experience and an extensive candidate network, HR2B not only helps businesses find the right executives but also provides strategic advice on ESG leadership development.
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