Course description
Fundamentals of ESG Investing
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.
Upcoming start dates
Suitability - 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.
Outcome / Qualification etc.
Credits: 8 CPD pts.
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
Training Course Content
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.
- 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
- 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
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Part of the Fitch Group, Fitch Learning partners with clients to enhance knowledge, skills and conduct. With centers in London, New York, Singapore, Dubai and Hong Kong, we are committed to questioning and understanding client needs across the globe and...
I appreciated the useful and highly relevant practical examples and case studies, a really interactive and dynamic presentation and course moderation.