A seismic shift in the global sustainability job market is unfolding as Europe and the United States scale back key ESG regulations, leading to uncertainty for sustainability professionals worldwide. With the European Union’s recent Omnibus Act significantly weakening the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), Carbon Border Adjustment Mechanism (CBAM), and the EU Taxonomy, sustainability careers are at a crossroads. This rollback threatens thousands of ESG jobs and forces professionals to look for opportunities in more stable markets—particularly in Asia.
Industry analysts predict that major corporations and the Big-4 accounting firms, which had rapidly expanded their sustainability divisions, may now be forced to downsize. The once-promising boom in ESG hiring could be turning into a wave of redundancies, with many sustainability professionals reconsidering their career paths. Recent sustainability graduates, who anticipated a thriving job market, now face a harsh reality of hiring freezes and rescinded offers in Europe and North America.
At the same time, in the United States, corporate resistance to ESG reporting, sustainability investing, and climate regulations is intensifying. Political and economic pressures are driving companies to cut back on their ESG commitments, further diminishing employment prospects in sustainability-focused roles.
From sustainability boom to bust
The Omnibus Act, pushed forward by EU policymakers under pressure from industry lobbies and economic concerns, has dismantled key sustainability requirements. Reporting obligations under CSRD have been significantly diluted, CSDDD has been stripped of its core accountability measures, CBAM has been weakened to favour corporate interests, and the EU Taxonomy has lost its teeth.
In the United States, the situation is no better. A sustained political and corporate backlash against ESG investing, DEI (Diversity, Equity, and Inclusion), and sustainability reporting has made ESG a toxic term in some boardrooms. Climate reporting frameworks are under attack, and asset managers are scaling back on ESG funds due to regulatory and political uncertainty.
With regulatory uncertainty and shifting priorities, corporate budgets for ESG teams are being slashed. The Big Four, once bullish on sustainability hiring, are now quietly preparing for large-scale redundancies in Europe and North America. Internal sources from within the Big 4 accounting firms suggest that thousands of sustainability consultants could be axed in the coming months.
Asia: a new frontier for displaced talent?
As Western job markets retract, Asia is becoming the new sustainability career hub. Singapore, with its strong regulatory framework and commitment to green finance and sustainability reporting, is emerging as the top choice for displaced ESG professionals.
“Singapore has built a resilient sustainability sector, and that makes it an attractive destination for sustainability professionals displaced by policy U-turns in Europe and the US,” says a senior recruiter in the region. “We are seeing a sharp increase in applications from Europe and North America.”
Hong Kong, once a financial hub for sustainability professionals, has seen a decline in its attractiveness due to political uncertainties and an exodus of foreign talent. Meanwhile, Thailand’s digital nomad visa scheme has made it an emerging destination for sustainability freelancers and independent consultants seeking opportunities in the region.
Other markets, including Japan, South Korea, and Australia, may also see an influx of sustainability talent as global firms realign their ESG priorities. However, the sheer volume of displaced professionals could overwhelm Asian job markets, making competition fierce even in sustainability strongholds.
A looming talent displacement crisis
As European and American sustainability professionals look for opportunities in Asia, the question remains: will there be enough jobs? While Asia is holding firm on sustainability regulations, demand may not be able to absorb the sudden flood of experienced professionals and fresh graduates seeking work.
“Companies in Asia will benefit from an influx of top-tier sustainability talent, but the reality is that there aren’t enough positions to accommodate everyone,” says an ESG hiring manager in Singapore. “We expect intense competition for roles, with Asia-based professionals getting priority over Western job seekers.”
For now, sustainability professionals face a turbulent job market shaped by political, regulatory, and economic forces beyond their control. The once-promising career paths in ESG and sustainability, once heralded as the future, are now at a crossroads. Whether Asia can become the new sustainability career haven remains an open question, but for thousands of professionals, it may be the only hope.
The future of sustainability careers
The unfolding regulatory changes in the EU and US raise critical questions: Will Asia be able to absorb the wave of sustainability professionals seeking new opportunities? Will corporate sustainability commitments hold firm in the face of economic pressures?
