In recent years, sustainable investing has witnessed increasing interest from investors, especially from an environmental, social and governance (ESG) perspective. Investors, both retail and institutional, are increasingly looking for Sustainable or ESG funds or investment opportunities that offer Sustainable/ESG factors, which potentially could enhance the value of a fund’s performance while improving their investments’ ESG performance.

This course reviews the key motivations behind the increased awareness of incorporating sustainable investment/ESG investing considerations in the investing process as well as the types of approaches to Sustainable/ESG investing. The role of ESG in the investment process will also be highlighted and participants will be introduced to the methods to evaluate these ESG research and ratings. In addition, the risks and challenges inherent in the ESG investing process will be discussed in the context of their feasibility when applied to asset classes and alternative investment, and in the banks’ (or firms’) engagement with their clients or investors when ESG factors are incorporated into their communication plans based on investors’/clients’ risk appetites and requirements.

• Private bankers in their advisory roles
• ARMs
• RMs
• Account Managers of financial institutions

• Understand the driving forces and motivation for Sustainable Investing in the investment landscape
• Be familiar with the types of approaches to Sustainable Investing and the universe of the sustainable investing asset classes
• Understand the sustainable issues that Sustainable Investing seeks to address and their role in the investment processes and determining its relevance and feasibility to the clients’ and organization’s needs including identifying the appropriate sustainable investment concepts that can be applied together, and which may be contradictory
• Aware of the research on and support the inclusion of sustainability factors in the portfolio construction process
• Understand the opportunities, benefits and challenges of Sustainable Investing including new and developing trends
• Aware of the leading global and regional sustainable investment initiatives, coalitions and pledges

Prologue: Motivation for Sustainable investing

• Definition of Sustainable/ESG Investing
• Sustainability Issues

Key sustainable investment strategies or investment approaches and governance practices

• ESG & Sustainable Investing (RI)
• Ethical & Negative Exclusions
• Positive Inclusionary
• Impact Investing
• Governance Practices
  

Sustainable asset classes universe

• Equities
• Fixed Income
• Liquid Alternatives
• ESG Structured Products
• Illiquid Alternatives/High Impact Strategies

Approaches to take into account sustainable factors in investment process

• Sustainable/ESG Factors in Investment Considerations
• Sustainable Investing Classification
• The Spectrum of Capital in ESG Investing
• ESG Considerations in the Investment Decision Making Process

Sustainable investment trends including new approaches and challenges

• Sustainable Investment Trends
• Trends in the US
• Incorporating Climate-related Components
• Lifecycle View of the Investment Process

Sustainable investment principles and best practices

• Advancement of Sustainable Finance Frameworks
• Lessons from EU: Sustainable Finance
• UNPRI: Principles for Responsible Investment
• Implementing the 6 Principles

Leading global and regional sustainable investment initiatives, coalitions and pledges

• Best Practice Guidelines & Regulatory Reporting Evolution
• Global & Regional Sustainable Investment Initiatives, Coalitions & Pledges
• Q&A

Assessment - MCQ