Certified Expert in ESG & Impact Investing

Unit 1: Introduction and Overview: What are ESG Criteria and Impact Investing

This introductory unit provides you with an understanding of how ESG criteria and Impact Investing relate to traditional mainstream finance. It familiarises you with major stakeholders, initiatives, and approaches for integrating non-financial issues into the day-to-day activities of investing. Key concepts and themes are introduced, which establish foundations for a learning journey that will be expanded upon over the subsequent units.

Unit 2: Historical and Theoretical Context

ESG and Impact Investing are orientated within different operational contexts: from asset management, through direct investment, to advisory services, etc. This unit helps you understand what is relevant for your context, whilst also making you aware of other requirements you may encounter in adjacent parts of the industry. It contextualizes the historical evolution and theoretical development of ESG and Impact Investing to show how they complement each other, and to demystify why some narratives about managing non-financial factors appear to be fragmented and conflicting. Conceptual structures are presented that help you apply theory to praxis via a unified framework.

Unit 3: Strategies for Measuring and Managing ESG Criteria and Impact

There are different strategic pathways available to managing ESG and impact factors. Each pathway represents a different level of methodological intensity. You will be introduced to the techniques and tools that are relevant for each, and learn how to choose the pathway that is most suitable for your needs or circumstances. This unit also clarifies how these strategic pathways align with operational mindsets such as compliance, risk management, as well as proactively managing performance against non-financial goals.

Unit 4: Integrating ESG and Impact Management in the Investment Process

Each of the strategic pathways for managing ESG and impact can be integrated at every stage of the investment process: from deal sourcing and due diligence, through ongoing investment management, to final exit or contract maturity. These all follow the same high-level process that aligns with the Deming quality management cycle. This is applied with different levels of intensity and granularity depending on the strategic pathway being followed. You will learn how this process can be deployed across all asset classes, publicly-traded securities and private over-the-counter transactions, and by retail investors as well as institutional investors.

Unit 5: Specialised Financial Instruments and Legal Contracts that Integrate ESG and Impact

This unit starts with an introduction of traditional asset classes and financial instruments (a refresher for anyone familiar with both investing and philanthropy). You will learn how ESG and impact features are incorporated into financial instruments. This can be achieved either by enhancing traditional instruments with additional requirements and obligations, such as with Green Bonds; or by developing innovative instruments and hybrid models that introduce new contractual and financial arrangements, such as Social Impact Incentives.

Unit 6: Ratings, Indicators, Non-Financial Reporting and Data

There are currently no universally accepted standards for reporting non-financial information, although there are several voluntary frameworks and norms established by industry initiatives. You will learn about the key regulations and legal requirements that are currently in various stages of development, notably by the European Commission. The unit also covers key trends, selected best practices, and challenges to help you navigate the various ratings, labels, certifications, and evaluation methods that are available. The challenges and opportunities in data collection are outlined, which explains why information from different providers of data and ratings is often weakly correlated.

Unit 7: Elective Module

Participants choose one module from the following options. The unit will conclude with an assignment that is tailored to the option you choose.

• 7a Marketing, Fundraising, and Sales – this option allows you to delve deeper into designing and presenting a product, fund, or another business idea for ESG and impact investing. It covers fund design, investor targeting, and how to present to investors.
• 7b Due Diligence – this option allows you to delve deeper into assessing investment opportunities. It covers the different tools available and how to take into account the market context, governance, legal form, and business models, as well as planning an on-site visit.

• Intro videos: After viewing the lectures, participants will have a basic understanding of each topic and will be able to classify the importance and relevance of different techniques and aspects in a broader context.
• Web-based Presentations: Web-based presentations complement the scripts and give additional input on important topics.