Environmental, Social and Governance
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Compared to the life of our planet, the Human species only appeared in the last five minutes. And the last 200 years since the industrial revolution, which dramatically increased the use of natural resources and related pollution, would only represent about 2:1000th of a second… yet scientific evidence shows that this glimpse of time is leading to devastating consequences on climate and other species.
If man wants to survive the next few minutes of geological time, it needs to quickly adapt its productive and financing system to limit its impact on the environment and maintain social peace. Institutional investors and regulators are now turning their attention to Environmental, Social and Governance factors.
Banks and asset managers are facing unusual new challenges and need to adapt their investment process to contribute to a stable, long lasting, sustainable world. This course prepares them to face these challenges.
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Current regulation will gradually encourage every investment professional to be familiar with the concept of Responsible Investing, and be able to integrate ESG factors in its investment process. More specifically however, this course is targeted at:
Fund managers (credit, equity, loans)
Financial analysts
Head of investment teams
Junior / new member of Responsible Investment teams
Institutional investors managing assets and asset managers
Corporate bankers
Investment bankers (structuring, syndicating…)
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This course aims to provide a better understanding of the context at play in Responsible Investing and to give tools and guidelines to adapt the way you do business and invest. To understand how to integrate ESG in your business, to train your teams and raise their awareness, to help you see how to design demands to an asset manager. After taking this course, you will be able to answer the following questions:
What is Responsible Investing?
What are E,S and G factors?
How will you invest in the future?
Why and how to integrate non financial factors in your investment decisions?
Can you actually improve your risk return objectives while looking at other factors?
What can be your company’s (and your own) contribution to a better society?
Can it lead to a stronger business model and higher success rates with your clients?
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We adjust to your needs. The “sweet spot” is 2 days, providing enough time for all topics and practice team through case studies and credit committees. We can condense or extend the program, but we always dedicate time for practice as it remains the best way to learn. Class sizes are limited to 20 analysts.
Below is an illustration of a 2-day program.
Pre-course: Online introduction to credit risk
Depending on the context of the course, you may want to include the online pre-course introduction to credit risk. The 5 modules and the short test require 4 – 6 hours of work depending on participants’ familiarity with the topic. The 5 modules include:
Dimensions of credit risk
Measurements of credit risk
Cycles, bubbles and crises
Funding sources and the capital structure
Credit rating agencies and credit ratings
In the classroom
Day 1
9:00 - 9:30
Introductions and Learning Objectives
9:30 - 12:30
Responsible Investment: Understanding the context:
History and definitions
Climate focus
12:30 - 1:30
Lunch
1:30 - 3:30
From problem to solution
Investor bodies
Financial regulation
External financial rating agencies
Labels
3:30 - 5:00
Responsible Investing & Financial Performance
Equities and bonds
Financial performance and ESG performance
5:00 - 5:30
Day wrap up - Set up Case Study
Day 2
9:00 - 10:00
Case Study Discussion
10:00 - 12:30
Working with ESG factors
Defining ESG in analytical process (Cases)
Investment strategies: Exclusion, Integration and Impact
Impact example: Green Bond example
Working example
12:30 - 1:30
Lunch
13:30 - 15:00
Reporting on ESG (case study)
15:00 - 17:00
Expanding the analysis: from regulatory to client demands
The Sustainable Development Goals
Definition and working bodies
Case
5:00 - 5:30
Course wrap up