Go green; work for less
UK investment banks with a sustainable agenda are continuing to recruit, albeit in relatively small numbers and the organisations still look like a good career bet. However, be prepared to face some stiff competition and much lower pay.
While interest around ethical, social and environmental investment was picking up before the financial crisis began to unfold, it's increased since things took a turn for the worse, reckons Mark Robertson of the Ethical Investment Research Service.
"More people are thinking about the risks surrounding lending and investments, which has only worked to the benefit of ethical investment principles. This is not only among the traditional ethical players, but also among mainstream financial institutions, from retail to investment banks."
The traditional banking models employed by ethical investment banks means that they're in a strong position in spite of the financial crisis, says Alexandra Murray, investment manager within Triodos investment bank.
"We have a strong balance sheet and do not invest in complex derivative products, and the sectors we invest in are growing, which puts us in a better position than mainstream financial institutions," she says.
A spokesperson for Climate Change Capital, an ethical investment bank, says: "The industry is driven by long term fundamentals (energy demand, energy security, scientific advice on emissions reductions) and is relatively independent of consumer sentiment for its growth."
Triodos is currently looking to expand its investment banking team, says Murray and they're expecting a greater number of applicants than usual.
"It is very competitive, but salaries here are not what they have been in the mainstream financial sector and a lot of people might find that hard to digest."
A corporate finance manager position currently being advertised on the Triodos website, for instance, is paying 45-55k.
If you can swallow that, however, the good news is that generic M&A/corporate finance skills are transferable. Murray worked at UBS prior to Triodos, for instance, and Chris Parson, director of the advisory business at Climate Change Capital was previously at Rothschild.
However, your chances of getting a foot in the door will be vastly improved if you have some sort of charity, NGO or social enterprise experience on your CV, reckons Robertson.
