GD680 – ESG: Environmental, Social & Corporate Governance
Master of Science in Green and Digital Management
Core Course
GD680 – ESG: Environmental, Social & Corporate Governance
Course Unit Code: GD680
Type Of Unit: Elective
Level of Course Unit: Second cycle
Year of Study: First/second year
Semester: On demand
Number of ECTS Credits: 6
Class Contact Hours: 28
Mode of Delivery
Face to Face
Prerequisites
None
Course Objectives
Environmental, social, and corporate governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Corporate governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. Environmental, social, and governance (ESG) criteria are an increasingly popular way for investors to evaluate companies in which they might want to invest. ESG criteria can also help investors avoid companies that might pose a greater financial risk due to their environmental or other practices. As ESG-minded business practices gain more traction, investment firms are increasingly tracking their performance. Financial services companies such as JPMorgan Chase, Wells Fargo, and Goldman Sachs have published annual reports that extensively review their ESG approaches and the bottom-line results. The objective of this course is to equip students with in-depth knowledge of the ESG principles and apply this knowledge to assess and manage investments with a focus on integrating environmental, social, and governance (ESG) factors. This course is designed for professionals looking to integrate the ESG issues in their fields of work, such as for example: sales & distribution wealth management product development financial advice consulting compliance risk After taking this elective course, participants may choose to continue their professional education by gaining the Certificate in ESG Investing by CFA Society of the United Kingdom (CFA UK Level 4 Certificate in ESG Investing https://www.cfauk.org/study/esg#gsc.tab=0 ).
Learning Outcomes
- Demonstrate awareness of the different approaches to ESG investing and define the benefits and challenges of adhering to good practice in ESG.
- Explain the key market drivers in favour of ESG integration.
- Critically assess each of the three ESG components: environmental factors, social factors, and governance factors.
- Analyze how ESG factors may affect industry and company performance and security valuation across a range of asset classes and apply a range of approaches to ESG analysis and integration across a range of asset classes.
- Integrate ESG in the investment mandates, portfolio analytics and client reporting.
Course Content
Course Features
Planned learning activities and teaching methods
Lectures; in-class discussion and debates; in-class exercises; problem sets; team work; case studies, team presentations, interactive online learning via Moodle (self-assessment quizzes, revision quizzes, discussion forums)
Assessment methods and criteria
30% Class Participation (including group work in class / case studies)
70% Final Computer-Based Exam(50 questions, 2 hours)
Language of Instruction
English
Work Placement(s)
Not applicable
Readings
Lectures, case studies, reports, and other course materials are available via Moodle.
Recommended reading:
1. Ioannou, I. & Serafeim, G. (2019). The Consequences of Mandatory Corporate Sustainability Reporting. Oxford University Press.
2. Timo Busch, Rob Bauer, Marc Orlitzky (2016). Sustainable development and financial markets: Old paths and new avenues. Business & Society, (3).
3. CFA Institute: Environmental, Social, and Governance issues in Investing, A Guide for Investment Professionals (2015). https://www.cfainstitute.org/-
/media/documents/article/position-paper/esg-issues-in-investing-a-guide- for-investment-professionals.ashx
4. CFA Institute: ESG Investing and Analysis (n.d.) https://www.cfainstitute.org/en/research/esg-investing
5. CFA Report (2019): ESG Integration in EMEA: Markets, Practices, and Data https://www.cfainstitute.org/en/research/survey-reports/esg- integration-emea
6. ESG Resources https://www.gobyinc.com/esg-solutions/esg-resources/