Essentials of Sustainable Investing

On successful completion of this subject students should be able to understand how different types of investors integrate ESG and impact considerations into their investment decisions, and how they vote and actively engage with investee companies to ensure long-term value creation. Ethical investing, social activist divestment campaigns and financial market innovations to address sustainability objectives will also be covered. Students should also be able to outline why, how and where investment is used to intentionally drive social and environmental impact in alignment with the UN Sustainable Development Goals. Topics will include : embedding ESG and impact considerations into all elements of fund management, a practical overview of best practice in strategically managing impact, and how various elements of global and national financial systems help and hinder the flow of capital to impact.

• 1Demonstrate a broad understanding of ESG, ethical investing, impact investing and related terms.
• 2Apply and critically evaluate practical tools used to integrate ESG risks into investment decisions.
• 3Compute investment portfolios using a range of optimization techniques that incorporate ESG factors, analyse the outcomes and critically reflect on their limitations.
• 4Critically review the concept of stewardship and how ownership rights are exercised by investors.
• 5Demonstrate a broad understanding of ESG derivative markets and how they can be used for risk management and trading purposes.
• 6Critically evaluate the products, tools, tactics and strategies used in impact investing and how they can be embedded into decision making.