In this course, you will analyze the importance of assessing stakeholder interest or salience in different ESG factors and industry variances. You will also evaluate the importance of ESG factors in your investment decisions, including how you can use them to create socially responsible portfolios with better-than-average returns. You will also examine the risks associated with ESG investing and how they can affect the corporation’s profitability.
Next, you will review the concepts of positive and negative screening and identify the ESG factors that cause investors to divest from or negatively screen certain assets. You will review ESG risks associated with climate, diversity, executive compensation, governance issues, and evaluate how corporate performance and stock prices correlate to ESG scores. You will also examine how ESG adoption could accelerate the growing trend of fossil fuel divestment, its minimal impact on returns, and what this means long term. Finally, you will analyze quantitative and qualitative measurements and explore different protocols, such as MSCI, to evaluate and provide ESG ratings that can affect stakeholder and investor interest.
By the end of this course, you will have explored how ESG investing has grown, assessed the variety of ways it has been integrated into the market, and analyzed the complex indexing and measurement techniques employed in the ESG space today.