Environmental, Social, and Corporate Governance (more commonly referred to as ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. Analysis of these criteria can help determine the future financial performance of companies (in other words the return capital and the risks that they face).
ESG criteria are a set of standards for a company’s operations that today’s socially conscious investors use to screen potential investments.
- Environmental criteria look at how a company performs as a steward of nature in protecting the planet.
- Social criteria examine how the company manages relationships with employees, suppliers, customers, and the communities where it operates.
- Governance deals with a company’s leadership, the pay of its executives, 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. Using ESG criteria can also help investors avoid companies that could pose a greater financial risk due to below par environmental or other practices.
This course is an introduction to these criteria and how they may be used.
Course Key Concepts: Climate change, Diversity, Employee relations, ESG, Governance, Human rights, Investment, Responsible investment, Social impact, Sustainability.
Learning Objectives
- Explore the environmental, social, and governance criteria and gain an understanding as to how each segment relates to the others.
- Discover how the three domains of social, environmental and corporate governance are linked to the concept of responsible investment.
- Discover what the key issues are within each of the three ESG categories.
- Identify what investment strategies are used to ensure responsible investment.
- Recognize the critical factors in the environmental, social, and governance mix.
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Prerequisites
No advanced preparation or prerequisites are required for this course.