Fundamentals of ESG investing

ESG Integration and the various ESG portfolio management approaches have become a hot topic in recent years. From exclusionary screening to impact investing and full ESG integration, the challenges and opportunities of each approach needs to be considered and set against the client’s/asset owner’s goals and objectives. Each approach is assessed from a risk and return perspective and the underlying skill and breadth of each strategy is analysed. The strategies are also analysed in the context of some popular ESG benchmarks and indices.

COURSE AGENDA

Session 1 – Exclusion-Based ESG Investing

• Overview of exclusion-based ESG investing
• Examples of large scale exclusion-based ESG investing
• Complexities in determining an exclusionary policy
• The problems and pitfalls of negative screening
• What impact do exclusions have on returns

Session 2 – Integration-Based ESG Investing

• What added-value do integration-based approaches offer
• Incorporating alpha insights into an integration-based approach
• Common ESG factors that are targeted
• Fundamental ESG integration – evaluating ESG factors

Session 3 – Impact-Based ESG Investing

• Defining impact-based ESG investing
• Understanding the cause and effect relationship in impact investing
• Impact investing as engaged ownership
• Making the impact objective explicit, intentional, and measured
• Mission-related investments Vs programme-related investments

Session 4 – Engagement-Based ESG Investing 

• Why do investors choose engagement-based ESG investing
• The different tones to engagement – collaboration, hostile
• The strategy for engagement – private, public
• Engagement through proxy voting