The recent UN Intergovernmental Panel on Climate Change suggested that, if left unchecked, climate change would have a catastrophic effect on not only the global economy, but also on investment returns across a wide range of asset classes. The report is not alone in its findings. Recently, one of the world’s largest money managers suggested the global economy would witness a cumulative loss in economic output of over 20 per cent in the next 20 years if no action is taken. On a micro level, there is increasing concern that climate change will hit the long-term valuations of companies in a wide range of industries, thereby negatively affecting pension funds and other key institutional investments. Investment managers now find themselves under significant pressure from regulators, clients and other stakeholders to employ their power and influence to undertake change for good. It is often pointed out that, in order to make a tangible contribution to managing climate risk, fund, asset and portfolio managers will have to reconsider their relationships with investee companies and asset owners from the ground up. This conundrum is a real and significant challenge for asset managers. It is also an enormous opportunity. With clients, end investors and regulators requiring such initiatives be undertaken, and with the added incentive of ‘investing for good’, asset managers may have little choice but to improve their ESG credentials, and to do so with substance.

For investment managers who successfully prove and substantiate their ESG credentials, the returns are potentially lucrative. However, the deployment of ESG into the strategy and investment process of an asset manager is no easy task. The effective use of data, reporting and disclosure requirements, screening and analysis tools pertinent to ESG all require specialist skills and experience.

This short, concise course will provide a detailed understanding of the key tenets of ESG and impact investing and how they can be effectively adopted by asset managers. The course is taught from a real-life, practitioner-led perspective, using practical and appliable examples.

• Key Learning Outcomes:
  • Understand the key real-life tenets of ESG in relation to managing assets and funds
  • Assess the regulatory environment for ESG investing globally
  • Understand the important and significant risk factors of climate finance
  • Discuss how ESG principles and practices can be practically incorporated into investment philosophies and processes
  • Assess the effective use of data in the asset valuation process and understand the use for metrics and screening
  • Understand performance measurement techniques for ESG investing
  • Review and understand the workings and principles of carbon accounting