Environmental, Social, and Governance (ESG) has gained increasing attention over the past few years. Today many institutional investors only invest in those companies that provide ESG performance reporting.
ESG criteria provide 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.
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.
ESG has considerations relevant to analysts and investors, consumers and employees, and has become a major topic of discussion at Board meetings.
Learning Objectives
This course has a two-fold objective;
- To present an introduction/overview of the ESG framework and how it supports a company’s overall risk management strategy and structure.
- To provide you with the knowledge needed to respond to ESG inquiries and leverage this information to conduct more effective due diligence, and/or make better investment decisions.
To achieve this, this course will;
- Explain what ESG is, and its relevance in making financial decisions.
- Describe key environmental, social, and governance issues.
- Explain how stakeholders influence corporate ESG performance.
- Analyze ESG risks and opportunities.
- Assess ESG company performance using publicly available information.
- Translate ESG information to business intelligence.
Methodology:
- This 1-day training program consists of 12 highly detailed sessions covering all aspects of ESG. The presentation material is supported by interactive sessions and exercises scheduled at regular intervals.
Course Content
Session 1 - ESG in a nutshell
We set the scene for this highly relevant and topical subject by explaining what ESG is. We do this by examining the three central factors used in measuring the sustainability and societal impact of an investment in a company or business namely;
- The environmental criteria that addresses a company’s operations environmental impact, and environmental stewardship.
- The social criteria that look at how a company manages relationships with and creates value for stakeholders, and
- Governance, which deals with a company’s leadership & management philosophy, practices, policies, internal controls, and shareholder rights.
- A Short History and Evolution of ESG
- ESG’s Growth into the Mainstream
In this session, we look at three examples of high profile, financially material ESG incidents, which influenced greater client demand for transparency and demand for ESG to be recognized as a fiduciary duty.
- BP - Deepwater Horizon
- Volkswagen - Diesel Emission Tests
- Facebook - Cambridge Analytica
- We examine and compare the different types of sustainable investment.
- Socially Responsible Investing (SRI).
- Impact Investing.
- Green Bonds.
- ESG.
We examine why is important and why ESG has such a significant positive impact on fundamental business issues relevant to the long-term success of any company in terms of;
- Corporate reputation.
- Risk reduction.
- Opportunity management.
- Cultural and intrinsic values.
ESG factors have a material impact on a wide spectrum of industries.
- Environmental - Climate change, Natural resources scarcity, Pollution and waste
- Impact of Environmental Factors
- Social - Community Engagement, Responsible sourcing
- Impact of social factors
- Governance - Board quality, diversity and effectiveness, reporting, transparency, business ethics, executive compensation
- Impact of Governance Factors
- Materiality of ESG issues in the corporate environment
- ESG issues often create new risks that affect supply chains, other industries or even whole communities. We examine some of these risks.
- Who are the stakeholders and why are they important?
- Overall stakeholder expectations
- Modern demands on supply chains.
- Reporting, Transparency, and Valuation
- ESG and Competitive Advantage
- ESG Investing Trends & Fund Performance
- Corporate & Investor Initiatives
- Initiative Impacts
Today more than ever before, companies are being pressured to justify their environmental, social and governance (ESG) status due to scrutiny from investors, the SEC and other regulatory bodies.
- However many firms are struggling to find a way to achieve ESG in a meaningful way - that is, going beyond saying “we recycle” - and embedding ESG on an enterprise level.
- What investors are looking for when evaluating ESG compliant companies.
- Steps for taking a risk-based approach to understanding how your organization can best achieve ESG compliance, and
- How ERM best practices can help you evaluate your ESG readiness.
- To create a better understanding of the growing ESG trend, we present a fact check on five common ESG myths.
Course Provider
Mr Richard Barr,
Operational Risk & Back Office Specialist ,
High-level Consulting ServicesRichard Barr , holds a B.S. in International Business Administration from San Jose State University in California. His professional experience spans over 23 years, 5 of which were spent with Wells Fargo Bank. Another 5 were spent honing his global banking skills, when Richard was intimately involved with International Trade Finance, Real Time Gross Settlement and Cross Border Banking. The past 14 years have been in the private and high-tech sectors providing high-level consulting services, business analysis, project management and training to a wide range of banking clientele across the globe.
Richard has also filled the role of advisor to central banks on payment systems and technical payments issues. Furthermore, key staff members from the Bank of England, South African Reserve Bank, Central Bank of Ireland, Bank Indonesia, European Central Bank and Bank of Portugal have attended training sessions presented by Richard.
Who Should Attend
- Board Members
- CXO Level Management
- Risk Officers & Managers.
- Internal Auditors.
- Compliance Officers
