Responsible Investment

Objectives

The aim of this course is to introduce students to the notion of responsible investment by providing an understanding of the importance of extra-financial data (ESG/ISR) and how sustainability is taken into account in asset managers’ management decisions.

A wide-ranging focus on the approaches adopted by a number of players will provide a better understanding of the areas of intervention and the multiple impacts of implementing an ESG/ISR strategy to build a portfolio.

The new financing tools that are emerging to help combat climate change will be discussed in the light of the changes taking place in the sustainable finance ecosystem.

The importance of managing extra-financial and climate data at the heart of the new systems will be highlighted, with workshops dedicated to exploring the tools and innovative solutions being observed to address the full range of transition issues.

Course outline

Introduction: Environment and awareness

1. Definitions, issues and players in responsible investment
1.1 Responsible investment and sustainable finance: what are we talking about?
1.2. The European Sustainable Finance Action Plan and its regulatory framework
1.3. Savers and responsible investment: what are the realities?

2. Implementing an ESG/ISR strategy
2.1. The main stages: why and how to implement a responsible investment strategy?
2.2 Widespread adoption of ESG/ISR investment by asset managers, and the different approaches implemented
2.3 Choice of indicators, importance of data and portfolio construction
2.4. Performance and non-financial reporting

3. Taking climate risk into account in asset management
3.1 Existing ecosystem around climate risk
3.2. Transition to a low-carbon economy, coal divestment and lower GHG emissions
3.3 Identifying and measuring financial impacts in the value chain
3.4. Green finance: the various tools available, including the emergence of Green Bonds

Prerequisites

None