ESG Investment Fundamentals

What is ESG Investing? 

The interest in responsible investing has now grown to such an extent the investment community has shifted from asking whether to adopt the ESG principles to how they should implement them. We will explore the developments in the areas of, and approaches adopted towards, responsible investing.

Course Delivery: Live Online

Course Objectives

ESG (Responsible or Sustainable) investing has seen a growth in interest from investors in recent years. Investors are increasingly looking for investment opportunities that meet environmental, social and governance (ESG) objectives, which enhance the value of a fund’s performance. This introductory course reviews the key motivations behind the increased awareness of ESG investing and the opportunities and challenges this presents.

Key Learning Outcomes

Understand what ESG investment is and the drivers of the ESG marketplace

Understand the most common types of ESG investments

Understand the ESG Integrated Investment process

Understand trends in ESG and an overview of ESG regulations

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Who Should Attend

This course examines the motivations behind ESG investing and the challenges involved in integrating this into existing investment processes. It is designed for financial services practitioners across the industry looking to improve their understanding of ESG issues. This course builds on an understanding of the fundamentals of investment management.

Define responsible investing

Define and contrast

Ethical investing

Socially responsible investing

Thematic investing

Impact investing

ESG investing

Understand the objectives of ESG

Explain the arguments for and against ESG in relation to affordability and effectiveness

Explain how ESG can create both risks and opportunities for investors

Understand the historical development of ethical and socially responsible and ESG investment

Benefits and Risks of ESG Investing  

There are potential risks and opportunities for ESG investing. We will specifically explore the benefits of ESG investing to corporates and the impact on the industry /company performance.

Explain the systematic nature of ESG issues in the context of:

Disclosure and regulation

Technological disruption

Demographic and social change

Globalisation of value chains

Changes to the distribution and transfer of wealth

Describe the benefits to organisations of adhering to good ESG practices

Determine how to measure the impact of ESG investing on company performance

Assess the impact that ESG investing has on industry and company performance

ESG Investment and Portfolio Management 

In this module, we examine how ESG can be integrated and adopted into the management of an investment portfolio and the benefits and limitations of these approaches. We will also look at the distinction between the screening of individual companies and collective investments, along with the impact that ESG has on, and the different approaches that need to be adopted for, active and passive portfolio management.

Describe approaches for integrating ESG into the portfolio management process

Contrast negative and positive screening and describe the roles that they have on investment selection

Describe the benefits and limitations of the main screening processes

Distinguish between ESG screening of individual companies and collective investments

Describe the impact of ESG on active and passive management

The ESG Investment Market and Developing Trends 

The ESG market continues to grow steadily. We will examine its estimated scale and growth, along with the key drivers behind that growth and the key challenges faced by the investment industry. In addition, we will discuss the challenges of applying ESG in different locations, along with the developing trends, themes and regulatory developments impacting this area.

Describe the size and growth of the ESG market by asset class

Explain the key drivers behind the increased interest in ESG investing

Explain the key drivers and challenges for ESG among investment industry stakeholders

Describe the challenges of undertaking ESG analysis across different geographical regions and cultures

Recognise current and developing ESG issues, trends and themes

Identify global trends and regulatory developments along with their financial analysis impact

The interest in responsible investing has now grown to such an extent the investment community has shifted from asking whether to adopt the ESG principles to how they should implement them. We will explore the developments in the areas of, and approaches adopted towards, responsible investing.There are potential risks and opportunities of ESG investing. We will specifically explore the benefits of ESG investing to corporates and the impact on the industry / company performance.

In this module, we examine how ESG can be integrated and adopted into the management of an investment portfolio and the benefits and limitations of these approaches. We will also look at the distinction between the screening of individual companies and collective investments, along with the impact that ESG has on, and the different approaches that need to be adopted for, active and passive portfolio management.

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