ESG for Investment Managers

Course Introduction

ESG for Investment Managers is a two-day training course that examines all areas of Environmental, Social and Governance (ESG) investing. Beginning with an introduction to the basic principles of sustainable and responsible investing, the courses goes on to explore how ESG information can be effectively incorporated into the investment process. Delegates will learn about the underlying factors in ESG analysis and how they impact ESG ratings and stock prices. They will also discover how these are used in the scoring and rating of companies, sectors and countries. Also discussed is ESG integration and the screening process whereby investors can target those companies that will produce the best ESG driven returns.

Who should attend: Investment managers, wealth managers and private banks, private equity firms, hedge funds, analysts, investment banks, pension funds, relationship and account managers.

 

Course Details

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Duration:

2 days (9am to 5pm)

Location:

London, UK - The Tower Hotel, London E1

Trainer:

Judith Stroehle

Course Fee:

£1990 + VAT

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Course Outline

 

Introduction to ESG, Responsible Investing and Sustainability

  • Why they are important and what they all mean
  • Is increasing demand from institutional and retail investors here to stay?
  • What is E, S and G?
  • The benefits, costs & risks of ESG investing

ESG Factors and Themes

  • Environmental: Energy consumption, emissions, water use etc.
  • Social: Equality and diversity, data security, employee welfare
  • Governance: Voting rights, stakeholder engagement, board accountability
  • Which matters most and why
  • Industry and sector differences

ESG and Share Price Performance

+ Do companies with higher ESG scores outperform?
+ Which pillars and factors matter most
+ Equity sector characteristics
+ Differences between the UK and elsewhere
+ Companies investors avoid: Case studies

ESG Materiality

  • What it means and why it is important
  • Evidence on the financial significance of materiality
  • How to perform a materiality analysis
  • Applying weights to materiality measures

ESG Ratings and Metrics

  • The problems with ESG scoring
  • Data quality, ratings biases, lack of standardisation, reporting fatigue, greenwashing
  • Applying AI and data science to ESG analysis
  • The importance of ESG momentum

Investing using ESG Scores and Ratings

  • Introduction to ESG strategies
  • ESG integration
  • Screening: Negative, positive, best in class, impact
  • ESG indexing: Active versus passive
  • Relative returns and performance
  • ESG derivatives

ESG and Fixed Income

  • How ESG and fixed income differs from share price affects
  • Do ESG ratings affect the interest rate companies pay?
  • ESG scores and credit ratings
  • Green bonds

Standards and Regulation

  • Regulation affecting ESG factors
  • Standards: National and international
  • What investors think important
  • Latest developments and what to expect in the future