ESG Investing  

A guide to ESG and responsible investing

  • Explain how due diligence works
  • Explain the likely impact of regulation
  • Identify future risks for the ESG sector
CPD
Approx.60min
A guide to ESG and responsible investing
Reuters/Yusuf Ahmed

Introduction

By David Thorpe

The story of recent years has been the emergence of investment products with a focus on environmental, social and governance (ESG) concerns. 

And as with any trend, there has been a substantial increase in such products coming to market, which has brought further issues.

For example, how to identify those which genuinely are about ESG, rather than merely using the term as part of a marketing strategy.

Regulatory changes are also being introduced, which it is hoped will help clarify terminology around ESG.

And while the industry is grappling with all this it also needs to keep its eyes on future risks and opportunities in the market.

This guide which will explore these issues in further detail is worth an indicative 60 minutes' CPD.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. True or false, the rise in the number of providers bringing ESG products to market increases the risk of greenwashed investment portfolios.

  2. True or false, according to fund managers, voting is not a very powerful tool to ensure that the investments made continue to behave in the way that enable them to demonstrate the desired ESG criteria in the first place.

  3. According to Patrick Thomas, what could be the next stage in the evolution of ESG portfolios?

  4. True or false, according to Noelle Cazalis, the ESG universe allows fixed income investors to diversify away from the traditional sectors and to therefore improve overall portfolio diversification.

  5. Are the number of companies meeting strict ESG criteria broad enough to ensure that typical investment consideration could and should be applied?

  6. True or false, to be an analyst at a fund house you need to be a CFA, and to work on a sustainability fund you need to have a chartered environmentalist qualification.

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You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how due diligence works
  • Explain the likely impact of regulation
  • Identify future risks for the ESG sector

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