PART I
The first part is an introduction for capital market participants with ESG experience who would like to build up or refresh the fundamentals of ESG as well as for those with no or little experience in ESG investment.
Module 1: ESG - an Introduction
The objective of this module is to draw the participants’ attention to the state of the art of ESG. What are the recent market trends and strategies? It reviews the similarities and differences between ESG, RI, SI, SRI, impact, engagement, non-financial terms and the additional financial terms necessary for application in investment management.
Module 2: Recent Developments of ESG integration
The conceptual framework is tested to work ESG aspects into making investment decisions. This module describes the reasons and barriers for using ESG, its implications, the regulatory framework and key ESG market drivers. We also discuss how to prove that ESG factors are important.
Module 3: Responsible investing across asset classes
The aim of this module is to describe approaches to ESG from the perspective of portfolio management, analysing ESG in different asset classes with a focus on bonds and impact investment.
Module 4: ESG Reporting
This module focuses on corporate ESG reporting. It will discuss the difference between mandatory and voluntary disclosure as well as difference reporting frameworks (e.g. EFFAS, GRI, TCFD, Integrated Reporting).
Module 5: Investment Process Chain
The ESG integration process described in the investment process is essential for understanding the integration of ESG in the valuation process. We discuss methodologies for the development of investment policies, allocation and asset selection, and the process of monitoring and reporting.
PART II
This part is tailor-made for advanced ESG users.
Module 6: Approaches of data analysis: data availability, quality and usage
This module will identify the general challenge of different data sources and the identification of material data in combination with the identification and measurement of ESG data.
Module 7: ESG Integration in Analysis
Here we present the measurement of the different components of E, S and G. We will analyze sector- specific characteristics and highlight the consistency with the business model.
Module 8: ESG Integration in Valuation
Participants study, through practical examples, the integration of ESG in the process of evaluation of investments, identifying value drivers’ impact on cash flows, beta, external costs, etc. We will study and investigate the integration of KPIs in pricing models like DCF and multiples.
Module 9: Investment decisions in the context of the investment process chain
An in-depth analysis of the investment decisions in the process chain, which builds on the basics of the investment process chain in Module 5. Especially we will discuss Asset Allocation, Security Selection process, Portfolio construction and the final Investment decision.
Module 10: Case study
The case study will integrate all the knowledge and skills the students have gained in the other modules to enhance the usefulness of the program for their daily work.
