About the course
Understanding and mastering the opportunities and risks arising from the Environmental, Social and Governance (ESG) criteria, such as climate change, is of key importance for financial market professionals in the 2020s. Institutional investors, private wealth bankers, and portfolio investors are frequently asked by clients to “green” their portfolio. At the same time, (financial) market regulators are acutely aware of sustainability risks. These are risks arising along a business’s supply chain, which may not be compliant with ESG criteria for various reasons, and which are formidably difficult to measure and assess. This programme aims to equip participants with the tools to clearly identify ESG related risks and opportunities and to provide impetus for the innovation of new sustainable financial products.
DAY ONE MORNING SESSION : A typology of ESG Data
ESG Data is an important information source for integrating environmental, social and governance (ESG) criteria in business processes and financial analysis. Even though ESG data have already been used for many decades, their use has become more and more pronounced in the investment communities in the recent years. Two trends can be observed: firstly, there is an increasing demand for sustainable investing calls for sustainable investment strategies, which are designed primarily based on ESG data and secondly, the role of ESG data in the sustainability area is reinforced by regulatory guidelines that call for asset managers to fulfil fiduciary duty and regulation that require more ESG-related disclosure. In this morning session, we will first answer the question how ESG data is defined and which sources and information are needed, followed by a classification of ESG data and an overview, how ESG key performance indicators (KPIs) may look like.
AFTERNOON SESSION: Data Providers and their Respective ESG KPI Approaches
Sometimes it is difficult for investors and banks to process all ESG-related information and then, act on it. The complexity must be reduced in order to, for instance, empower a company’s management to steer the company alongside certain ESG factors or to enable an asset manager to identify the important risks and opportunities for an investable company. This session will therefore shed light on the landscape of ESG data providers, and present their approach for modelling, defining and quantifying ESG KPIs. Participants will then change their perspective and define their own ESG KPIs for given case-studies.
DAY TWO MORNING SESSION : ESG Ratings
This session will explore ESG ratings and labels. ESG ratings and labels can be seen as the products created based on ESG data. In the past years, a variety of ESG rating products have emerged with the aim to offer investors insights into ESG risks and opportunities embedded in their portfolios, allowing investors to understand the investee companies’ exposure to and management of ESG issues in various dimensions. We start with a description of origin and evolution of ESG ratings and introduce you to the most relevant providers and products in the market. A systematic approach to categorising (including coverage, scope and methodology) the various ESG rating products helps you to understand and to choose the right approach for your business.
AFTERNOON SESSION: Use Cases for ESG Ratings This session is divided into two parts: First, we will work on concrete case studies where participants will have the chance to choose the “right” ESG rating product to given case studies, thus simulating the daily work of financial institutions and investors, while taking into consideration the institutions’ organisational and management processes. Secondly, we will discuss existing limitations and challenges rising from the emerging and rapidly changing developments in the sustainability world.
The programme will be a blend of lectures, case discussions and in-class development of practical illustrations to allow for a hands-on experience with the concepts studied and deep learning.
Dina's educational background is in law and economics. She has extensive experience in mergers & acquisitions, both from a legal as well as a financial perspective, with a special focus on financial institutions, including financial modelling. In 2013, she moved to Peru where she started focu...
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