Nobody denies that, at least during the last decade, characterized by a variety of management styles and a lot of supply of market data, aspects of environmental, social and governance issues (ESG) are taken each time into account in investment decisions by many investors, forming and important part of his management style and the analysis of competition.
In this context, the integration of ESG information in pricing models and arithmetic calculation methods of responsible investment are set to the most important aspects of management based on the principles of ESG.
This is confirmed by the World Economic Forum, which considers that inadequate education models and valuation techniques ESG is undoubtedly one of the most important barriers to poor integration of ESG variables into the mainstream of decision investment.
The training program EFFAS ESG aims to overcome this challenge by providing the necessary training for the efficient Valuation, Measurement and Integration of ESG issues into investment analysis.
In general, it is to sensitize the participants about the importance of ESG issues in investment processes. On completing the program students should be able to know and understand:
- The various methods of assessment of ESG
- The various sources of data and tools ESG
- Typical challenges, issues and problems of integration of ESG into investment decisions
- The opportunities and limits of measuring the ESG
- The analysis of profitability and ESG-related portfolios
- ESG impacts on the risk-return pair
Who is it for? (Potential Candidates)
The EFFAS ESG program is particularly aimed at financial analysts, managers and pension funds who want to integrate ESG data in their capital allocation processes, but also, in general, all investment professionals increasingly committed to ESG issues. Other specialists such as auditors and consultants will find this interesting to developing your course work. In addition, it is ideal for asset owners, consultants, financial planners and "family office" who wish to develop their understanding of ESG in the capital market.
In addition to the face classroom sessions scheduled (16 hours), to complete the training, and in order to guide and support the student in the preparation of examinations for the EFFAS ESG Certified Diploma, EFFAS provides the student with the EFFAS platform. It is an IT tool that allows in a comfortable and dynamic way to follow through the web his period of study as well as self-assess the knowledge acquired. The students can access the EFFAS Platform from any point (personal computer, laptop, ipad, mobile phone) with Internet connection.
The student will have available through the e-learning EFFAS platform:
- Supporting documentation (slides and case studies)
- Supplementary readings and "working papers" recommended
- A battery of tests (Self-assessment of knowledge)
- Some areas of communication with peers and faculty
- National associations are free to establish their own methodology for implementing the program
- Module 1: "Wake me up"
The objective of this session is to draw attention of the participants on the overall implementation of the ESG; How to prove that ESG factors are important?
- Module 2: Fundamentals
The conceptual framework is tested to work ESG aspects in making investment decisions. The similarities and differences between ESG, RI, SI, SRI, impact, engagement, non-financial terms and the additional financial terms necessary for application in investment management are reviewed. The reasons for using the ESG, its implications, the regulatory framework and key ESG market drivers are described in this module.
- Module 3: Approaches and strategies of ESG
ESG integration process described in the investment process, is essential for understanding the integration of ESG in the valuation process. Methodologies for the development of investment policies, allocation and asset selection, the process of monitoring and reporting are discussed.
- Module 4: Investment Process Chain
We study, through practical examples, the integration of ESG in the process of valuation of investments, identifying value drivers of the ESG, measurement methods and their impact on cash flows, beta, external costs, etc. The various data sources (Bloomberg, GRI, EFFAS,) are reviewed and shown how to integrate KPIs in pricing models: DCF, multiples, forecasts based on critical evaluation of Bloomberg on valuation models "fit -for- purposes"
- Module 5: Integration and assessment of ESG
The aim of this module is to describe approaches to ESG from the perspective of portfolio management, analyzing the ESG in different asset classes with a focus on bonds and impact investment.
- Module 6 : Investment Management
This last module focuses on corporate ESG reporting. The difference between mandatory and voluntary disclosure as well as difference reporting frameworks will be discussed.
ESG Certification Exam
The examination for the "Certified EFFAS ESG Diploma" will last a maximum of 2 hours. Its structure is as follows:
Part 1 - 15/20 multiple choice question, score 25% of the total.
Part 2 - 4/6 mini-open questions, 35% of total score
Part 3 - 1 Case Study, 40% of total score
It is considered that the candidate has passed the exam when they have received a higher score than 50% of the total points. EFFAS convene two calls a year,14th October 2016
10th March 2017
13th October 2017