Awareness in Environmental, Social and Governance (ESG) and Sustainable Responsible Investing (SRI) has intensified significantly in the past two years. As ethical investing becomes more commonplace, especially among large institutional investors, and media coverage of the sector’s activity proliferates, ESG and SR investing is set to grow in importance. Recent research has indicated that younger investors are more likely to invest in sustainable investments than otherwise. As such, asset managers and financial institutions anticipate that global demand for socially responsible investment products will soar in coming years.
Through its structure and nature, Shariah-compliant finance and investment is supremely well-positioned to take advantage of the growth of ethical and sustainable investing. With Islamic finance being inherently ethical and the similarities with ESG and SRI being many, the development of Islamic finance products that are also ethical and sustainable offers financial institutions and asset managers an exciting and potentially lucrative opportunity.
KEY LEARNING OUTCOMES
Discussing ethical, ESG/SR investing and how it complements Islamic finance and investment principles and activities
Basing investment decisions on ESG and SR factors: defining the ethical, sustainable investment sector
Assessing opportunities for the integration of ESG/SRI products in the Islamic finance marketplace
Identifying key characteristics of ethical, ESG and SR investing performance measurement
Exploring valuation issues and challenges with both ESG and SR investing
Effectively undertaking asset allocation for a high-performance, balanced ESG/SRI portfolio
Agenda
9:00 – 10:45
Session 1: What is Environmental, Social and Governance (ESG) and Sustainable Responsible Investing (SRI) and What Role does it play in the Islamic Asset Management Landscape?
Basing investment decisions on ESG and SR factors: defining the ethical and impact investment sector and predicting its importance in the coming years
Discussing ethical, ESG/SR investing and how it complements Islamic finance and investment principles and activities
Discussing trends and potential market size; identifying admissible activities and sectors and assessing the likely evolution of ESG/SRI products
Assessing opportunities for the integration of ESG/SRI funds in the Shariah funds marketplace
Investor profiling for the ESG/SRI market: sovereign wealth funds and institutional investor investment mandates
Stuart Hutton — Chief Investment Officer, Simply Ethical
10:45 – 11:15
Coffee
11:15 – 12:45
Session 2: Evaluating Performance Management and Screening Tools for ESG/SR Investing
Identifying key characteristics of ethical, ESG and SR investing performance measurement
Discussing and evaluating various asset classes and their importance to ESG/SR investing
Incorporating ethical screens and screening methodologies into an ESG/SF-conscious investment decision making processes
Evaluating ESG/SF investment indices and performance measurement tools in this sector
Dovetailing Shariah screens and indices with those of ESG/SRI
Assessing the development of recognised Global ESG standards for investment mandates
