Introduction to ESG Investment
Etablissement : Faculté de Gestion, Economie & Sciences Masters
Langue : Anglais
Formation(s) dans laquelle/lesquelles le cours apparait :
- Master Finance Responsable Durable [ECTS : 3,00]
Période : S1
- Comprehend Various Approaches to Responsible Investment: Acquire an in-depth understanding of responsible investment approaches, with a specific focus on integrating environmental, social, and governance (ESG) factors.
- Analyze Fundamental Issues in ESG Domains: Analyze and delve into the fundamental issues that define and encompass the environmental, social, and governance aspects, comprehending their individual relevance and impact.
- Grasp the Broader Sustainability Landscape: Grasp the broader landscape of sustainability, incorporating a global perspective, and gain insights into prominent sustainability initiatives.
- Evaluate the ESG Market Dynamics: Evaluate the dynamics of the ESG market, including its relevance, scale, breadth, primary driving forces, challenges, as well as potential risks and opportunities.
· Introduction to ESG
o Define ESG.
o Define the following sustainability-based concepts in terms of their strengths and limitations:
§ Corporate social responsibility.
§ Triple bottom line (TBL) accounting.
o Define different approaches to ESG investing, their characteristics and the role that ESG plays in each of them.
o Describe the benefits to organizations of adhering to good practice in ESG, and the linkages between these practices and financial system stability.
o Describe the challenges to organizations of adhering to good practice in ESG including.
o Explain the materiality of ESG issues in terms of their key characteristics, risks and impact that they can cause.
o Explain different ESG megatrends, their systemic nature and potential impact on companies and company practices.
o Explain how ESG investing is a strategy and a practice, and the three ways in which investors typically reflect ESG considerations.
o Explain the aims, elements and progress achieved by key supranational ESG initiatives and organizations.
· The ESG market
o Explain the history of ESG investing in brief, including its roots and modern responsible investment.
o Explain the size and scope of ESG investing
o Explain key market drivers in favor of ESG integration
o Explain the key drivers and challenges for ESG integration among stakeholders within the investment industry
o Explain how ESG issues are related to sustainability trends and themes within the investment industry
Learning outcomes
By finalizing the 20h introductory course, students will be able to define the importance, materiality, and risks of ESG in today’s markets and know the values added by these intangibles, the difficulties encountered in the disclosure process.
Students will be able to know where ESG information should be reported, what ESG information should be reported and how should ESG information be prepared and presented. Finally, what are the challenges in applying materiality in the judgement process.
