ESG FUNDAMENTALS: SUSTAINABLE FINANCE & INVESTMENT

OVERVIEW

Environmental, Social, and Governance (ESG) has gained increasing attention over the past few years, with many institutional investors investing only in those companies that provide ESG performance reporting. ESG has considerations relevant to analysts and investors, consumers and employees, and it has become a key topic of discussion at the Board table.  This course provides an overview of an ESG framework and how it supports a company’s overall risk management. It examines each component in detail and provides insight into how they converge to impact a company and its stakeholders. The course also discusses how to look at corporate pressures & stakeholder expectations and their impact on risk identification and business success. Lastly, we look at critical considerations from both the company and investor perspectives before applying theory to practice in a final case study.

The Sustainable Finance aspect of the Masterclass addresses the why, what, how of sustainable finance. It takes you on the journey of transitioning from traditional finance which focuses solely on financial return and risk, into sustainable finance which considers financial, social and environmental returns in combination. You will learn new framework for sustainable finance which highlights the move from the narrow shareholder model to the broader stakeholder model, aimed at long-term value creation for the wider community.

This programme will explore the latest and practical tools for implementing sustainable investing and lending, which you can adopt in your own organisation.

LEARNING OUTCOMES

After this programme, you will:

• recognise the links between finance and sustainability challenges
• evaluate  ESG risks and opportunities from a financial perspective, and understand how to manage/mitigate those risks.
• learn new framework for sustainable finance and identify how companies and financial institutions can adapt to a more sustainable economic model
• be familiar with the latest approaches in sustainable investing and lending
• Distinguish between different types of the sustainable finance market, products, and relevant eligibility criteria;
• be able to set up a useful dialogue with companies that are already part of the transition
• know how to implement sustainable investing and lending in your organisation » become part of a network of academics and practitioners in sustainable finance.

WHO SHOULD ATTEND

• Anyone who wants to build a career in ESG and Sustainable Finance
• All financial service professionals in investment, insurance, banking, asset Management, risk management.
• Financial services advisors, capital markets specialists, account managers, and investment consultants who want to better understand corporate sustainability and finance.
• Insurance Underwriters
• Climate change mitigation experts (or practitioners)
• Corporate Social Responsibility Managers
• Governance and Risk Management
• Anyone that has an interest in understanding the linkages between finance and sustainability. No specific Banking or Finance background is required.
• Also from cross-industries, Governments, academia,  International organizations & Civil Society Organisations

COURSE MODULES

Module 1:

• Module 1: Introduction to ESG
• Introduction to Environmental, Social and Governance (ESG) and Principles
• Importance of ESG in Business
• ESG Frameworks and Legislations
• Introduction to Sustainable Finance
• Incorporating Sustainability/ESG into Organizations and the Financial System
• Case studies

Module 2: ESG Strategy Development and Implementation

• Designing an Effective ESG Strategy
• Materiality and ESG strategy
• The methodology of materiality
• Steps from materiality to strategy
• Steps from materiality to strategy
• Stakeholder Engagement in ESG Strategy
• Implementing ESG Initiatives in Operations
• Monitoring and Evaluating ESG Performance

Module 3: Framework for sustainable finance

• The role of the financial system
• The Five Pillars of Sustainable Finance Concept
• Sustainable Finance: Policies and Regulation
• Three stages of sustainable finance: Profit maximisation, while avoiding ‘sin’ stocks, Internalisation of externalities to avoid risk, contributing to sustainable development, while observing financial viability
• The Green Bond Market
• Green Bond Projects around the World: Examples

Module 4: ESG in Investment Decisions

• ESG and Responsible Investment
• Understanding ESG Ratings and Indices
• ESG Integration in Portfolio Management
• Role of ESG in Financial Performance

Module 5

• Aligning investment with sustainable finance
• Sustainability, Impact and Impact Measurement
• ESG Data & Ratings
• Case Study: Measuring Impact in Practice
• Testing understanding

Module 6: ESG Reporting and Metrics

• Introduction of ESG Metrics
• ESG reporting trends
• Frameworks and Standards for ESG Reporting (GRI, SASB, TCFD, IFRS, CDP)
• Importance of Transparency in ESG Reporting
• Stakeholder Engagement in Reporting
• Strategies for Effective ESG Communication