Farrell Associates | Certified B Corp™

Is Growth Equity Disrupting Conventional Renewables? In response to high interest rates and the pricing mismatch between buy-side and sell-side, companies are rethinking strategies. Investment funds are starting to look beyond traditional renewables. They’re diving into newer technologies that offer lower risks and steadier returns. Growth equity has emerged as one of the few activities with strong deal flow in the space, which means there’s a big demand for people who can bring fresh ideas and help these areas grow. Growth equity is fuelling the rise of areas like hydrogen, e-fuels, heating, and digital infrastructure, sectors that not only promise stable returns but also minimise risk. So, what does this mean for jobs in the industry? - We’re seeing a significant shift in career paths, with professionals moving from conventional renewables into emerging technologies. - Internal talent is gravitating toward newer focus areas, with some teams expanding as returns improve. - And as people move around internally, it’s opening up opportunities for others to step in and make an impact. This focus on growth equity, without as much debt to worry about, is paving the way for some serious progress in the energy transition. It’s an exciting time to jump in! If you’d like to hear more about what leaders are saying and the latest recruitment trends in this space, feel free to reach out! Stephanie Thompson John Gillespie Neil Farrell Matt Baty Sashwot Kharel Farrell Associates | Certified B Corp™

UNLOCKING VALUE THROUGH ESG IN HIGH-IMPACT SECTORS The untapped potential of ESG integration in traditionally "dirty" sectors like oil and gas, mining, and infrastructure. The consensus? There's significant value to be created. Key takeaways: ESG initiatives in high-impact industries can lead to higher valuations and exit multiples. Successful implementation of sustainability measures in these sectors can result in "skyrocketing" value creation. Private equity firms are increasingly targeting these assets, seeing opportunities to drive substantial returns through ESG improvements. For example, developing green cement technologies or implementing decarbonisation strategies in large infrastructure projects can dramatically boost asset value. As the market evolves, those who can effectively integrate ESG into high-impact sectors will likely see outsized returns. It's about seizing opportunities for growth and value creation. What's your take? Are you seeing similar trends in your industry? Neil Farrell Tatiana Dupont Stephanie Thompson Sashwot Kharel Matt Baty Farrell Associates | Certified B Corp™

Our team's chosen sustainable posts this week. Thank you to David Drew, Richard Templer, John Scrimgeour, Carl Bärstad, Mariana G. and Nick Memminger for their posts this week. Neil Farrell John Gillespie Tatiana Dupont Matt Baty Sashwot Kharel Stephanie Thompson

WITH ESG REGULATIONS ON THE HORIZON, HOW PREPARED IS YOUR BUSINESS? ESG regulations are rapidly evolving; many firms are scrambling to keep up. While some organisations have embraced these changes, others are lagging. The EU, with CSRD and updates to the SFDR, is forcing companies to disclose more comprehensive ESG data. The UK's SDR framework creates challenges for firms operating in both markets. In the US, the SEC is finalising rules requiring firms to define their ESG integration strategies and measure carbon emissions. California has already implemented carbon measurement regulations. Large asset managers with international operations are feeling the pressure to enhance their ESG disclosures across multiple jurisdictions. However, mid-tier firms may struggle most with these new requirements, lacking the resources of their larger counterparts. Some firms are proactively preparing by: ·     Expanding their ESG teams ·     Investing in data collection and reporting capabilities ·     Aligning with frameworks like TCFD and PRI ·     Engaging external advisors for specialised expertise Others are taking a "wait and see" approach, potentially putting themselves at a competitive disadvantage. As these regulations come into force, we'll likely see a significant shift in how companies approach ESG integration and disclosure. Neil Farrell Tatiana Dupont Stephanie Thompson Matt Baty Sashwot Kharel Farrell Associates | Certified B Corp™

Is a case study, or assessment a good part of a sustainability recruitment process? Most recruiters would say no. It's the death knell of interview processes. I say 100% yes (alongside taking your time to make the right decision, another thing average recruiters advise against ''if you wait, she'll be gone''). You want these people to drop out. Save yourself a lot of time, money, and stress. If a recruiter is pushing you to go one way, who is it for? More than anything a case study is a good way to syphon off those that aren't really interested, or are interested for the wrong reasons. It also gives you the chance to see what they are like at the tasks they will do in their job, how good the candidate is under pressure, and in managing time and tasks. The pressure is on the recruiter to find people who see the role and opportunity as a step up, and a development opportunity, so they will do anything to get the job. Not one for selling our services, but this is what Farrell Associates | Certified B Corp™ bring. We do more of the lifting at the search stage, and our shortlists are not people we've convinced to come and meet you. They are people we are convinced will accept the job once they hear the details from you. And, more importantly, people we think will flourish over the longer term.. which is what improves our brand, and builds trust.. our main focus! John Gillespie Matt Baty Stephanie Thompson Tatiana Dupont Sashwot Kharel

RENEWABLE ENERGY DEAL VOLUME IN DECLINE, RECRUITMENT ACTIVITIES IN DECLINE The impact of the decline in M&A deals on recruitment has been striking - most companies have been hit hard, some are barely holding on, and only a few have had a good year. This slowdown has meant fewer new hires, forcing businesses to rethink their strategies quickly. Developers, for instance, are feeling the pressure from higher financing rates and rising development costs. Many are offloading assets, while listed utilities are divesting non-core assets, like gas, largely due to sustainability concerns to fund future growth. While some argue that M&A in energy has held up better than in other sectors, my conversations suggest a different story. A senior figure mentioned just this week: “We used to close 4-5 deals a month; now we’ve done 4-5 deals the entire year.” That’s a major shift, and it’s creating a lot of uncertainty. It’s definitely a tough and stressful environment, and that’s echoed in nearly every conversation I’ve had. Yet, despite these challenges, adaptation has been key. The exposure gained in navigating this difficult time is valuable, and the talent pool available right now is exceptional. I’m talking to some amazing people—highly skilled professionals who’ve adapted to these tough conditions and are ready to ready to contribute to that momentum! We’re fortunate to be working with fantastic clients and candidates in the space, and while it’s been a tough year, I’m hopeful that Q4 will bring positive momentum!! Neil Farrell Stephanie Thompson John Gillespie Matt Baty Sashwot Kharel Farrell Associates | Certified B Corp™

Excited to launch our new podcast series: Demystifying the Recruitment Process. The job market within sustainability and across the industry can be hard to navigate. Farrell Associates is often asked by jobseekers how to best apply for roles they see advertised. Each week, we will launch a different topic we often get asked about. Any suggestions you would like to be discussed please email us at fa-group@farrellassociates.com with Podcast in the heading. Matt Baty Stephanie Thompson Neil Farrell John Gillespie Tatiana Dupont Sashwot Kharel https://lnkd.in/eDyUytTa

HOW ESG IS CHANGING PRIVATE MARKETS IN THE UK AND EUROPE In the UK and European markets, we are witnessing demand in ESG-focused roles, particularly within mid-sized firms looking to enhance their sustainability credentials. Recent discussions with industry peers highlight the following: ·     Pressure from LPs and regulators for higher ESG standards ·     Integrating ESG principles throughout the investment process rather than simply for compliance ·     Challenges of finding candidates with both financial expertise and ESG experience While Europe and the UK lead in sustainability, even there, firms are grappling with scepticism and knowledge gaps. This presents a unique opportunity for ESG professionals to make a significant impact. As recruiters, we are seeing a trend towards: ·     ESG leaders involved in due diligence and strategy ·     Demand for professionals who can navigate complex regulations such as CSRD ·     Interest in candidates who can effectively communicate sustainability narratives to stakeholders The market is ready for those who can bridge the gap between traditional private equity skills and ESG expertise. The potential for ESG-focused recruitment in private equity is growing and becoming essential for firms aiming to remain competitive and profitable. Neil Farrell Tatiana Dupont Stephanie Thompson Matt Baty Sashwot Kharel

The benefits of working in a community. Just ask for help! I had a wonderful call last week with someone who I speculatively reached out to, asking for some advice about how to break into a new, and exciting corner of the market. We had never met, and had no mutuals, but she took 30 minutes to give me a very clear, and detailed overview of the market; plus some brilliant suggestions I had never thought of (ask ChatGPT for relevant clients among others!). While there is a lot of doom and gloom, if you work in an outreach role, it is really what you make of it... and asking for help is always a great place to start! Tatiana Dupont John Gillespie Stephanie Thompson Sashwot Kharel Matt Baty Farrell Associates | Certified B Corp™

Do you also see that hiring developers in wind and solar is hard?