ESG Impact: Investor Perspective from Coursera

In this course, you will analyze the importance of assessing stakeholder interest or salience in different ESG factors and industry variances. You will also evaluate the importance of ESG factors in your investment decisions, including how you can use them to create socially responsible portfolios with better-than-average returns. You will also examine the risks associated with ESG investing and how they can affect the corporation’s profitability.

Next, you will review the concepts of positive and negative screening and identify the ESG factors that cause investors to divest from or negatively screen certain assets. You will review ESG risks associated with climate, diversity, executive compensation, governance issues, and evaluate how corporate performance and stock prices correlate to ESG scores. You will also examine how ESG adoption could accelerate the growing trend of fossil fuel divestment, its minimal impact on returns, and what this means long term. Finally, you will analyze quantitative and qualitative measurements and explore different protocols, such as MSCI, to evaluate and provide ESG ratings that can affect stakeholder and investor interest.

By the end of this course, you will have explored how ESG investing has grown, assessed the variety of ways it has been integrated into the market, and analyzed the complex indexing and measurement techniques employed in the ESG space today.

What's inside

Syllabus

Module 1

In this module, you will explore how an investor can use ESG factors to maximize positive returns and minimize downside risks. You will examine the significance of screening stocks with ESG factors to inform portfolio construction as well as the relative significance of positive versus negative screening. You will analyze the importance of assessing stakeholder interest or salience in different ESG factors and industry variances. Next, you will assess the importance of ESG factors in your investment decisions, including how they can be used to create socially responsible portfolios with better-than-average returns. By the end of this module, you will have identified the best methods of screening stocks to account for ESG factors, the costs associated with ESG strategies, and the importance of diversification.

Module 2

In this module, you will explore the complex relationship between ESG and the stock market, from the inclusion of companies with a large ESG profile to the exclusion of those that refuse to adopt a green agenda. You will also assess the risks associated with ESG investing, and how it can affect a company's profitability. Next, you will examine how to avoid greenwashing by measuring the impact of a corporation’s green initiatives through inclusionary screening. You will review ESG risks associated with climate, diversity, executive compensation, and governance issues, and will examine how corporate performance and stock prices correlate to ESG scores. By the end of this module, you will have differentiated between ESG exclusion and inclusion of companies, identified how to avoid greenwashing and measuring corporate social impact, and reviewed the influence of ESG risk factors on stock prices, including their relationship to ESG scores and their impact on pension plans.

Module 3

In this module, you will analyze the upward growth curve of ESG incorporation over the last 15 years as well as the main types of assets that are driving this growth. You will also review the motivating ESG factors that cause investors to divest from or negatively screen certain assets. You will also assess the way that large investment firms such as BlackRock, Fidelity, and Vanguard are engaging with ESG initiatives and making sustainability a prominent driver in their investment selections. Lastly, you will examine how ESG adoption could be accelerating the growing trend of fossil fuel divestment, its minimal impact on returns, and what this means long term. By the end of this module, you will have analyzed ESG incorporation and its driving factors, reviewed educational institution endowments’ growing ESG investment commitments, and examined the rise of fossil fuel divestment and why this matters.

Module 4

In this module, you will assess the various methods for measuring and indexing ESG factors in the investing space, the inherent challenges in calculating these values, and how to go about overcoming these challenges. You will examine how ESG indices are created, how firms can evaluate their efficacy, and how the creation of a sustainability index has made impact measurement easier to gauge. Next, you will analyze quantitative and qualitative measurements, and explore different protocols, such as MSCI, to evaluate and provide ESG ratings. Finally, you will assess the various tools that you can use to measure ESG investments and how they compare to one another. By the end of this course, you will have differentiated between how investors can use these tools to monitor ESG practices and build indexes that better align with their values.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Provides an in-depth examination of ESG investing, its growth, and its integration into the market

Taught by Christopher Geczy, an expert in the field of ESG investing

Explores various methods for measuring and indexing ESG factors, addressing challenges and solutions

Suitable for individuals seeking to enhance their understanding of ESG investing and its impact on investment decisions

Provides practical insights into assessing stakeholder interest and salience in ESG factors across different industries

Requires learners to have a basic understanding of investing and financial concepts

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in ESG Impact: Investor Perspective with these activities:

Review the Basics of ESG Investing

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Brush up on the core concepts of ESG investing to strengthen your foundation for the course.

Browse courses on ESG Investing

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Examine different types of ESG funds and strategies
Research historical performance of ESG investments
Review definitions and concepts of ESG investing

Connect with ESG Investing Professionals

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Seek guidance from experienced professionals to expand your knowledge and gain insights.

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Identify ESG investing professionals through online platforms
Reach out to professionals and request mentorship or informational interviews
Prepare questions and actively engage in discussions

Write a Summary of an ESG Investing Article

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Enhance your understanding by summarizing key insights from an ESG investing article.

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Select a reputable article on ESG investing
Read the article thoroughly and extract key points
Organize your notes and write a concise summary

Three other activities

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Analyze ESG Reports of Listed Companies

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Apply your knowledge by analyzing real-world ESG reports to assess company performance.

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Choose listed companies with ESG disclosures
Retrieve and review ESG reports from company websites
Evaluate ESG metrics and compare performance across companies

Contribute to Open-Source ESG Data Repository

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Contribute to the ESG knowledge base by participating in open-source data projects.

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Identify open-source ESG data repositories
Review data collection and validation methodologies
Contribute data or assist in data analysis

Develop an ESG Investment Proposal

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Integrate your learning into a practical deliverable by creating an ESG investment proposal.

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Define investment objectives and align them with ESG goals
Research and select ESG-compliant investments
Construct a portfolio and justify investment decisions
Present the proposal to a hypothetical investor

Career center

Learners who complete ESG Impact: Investor Perspective will develop knowledge and skills that may be useful to these careers:

ESG Investment Consultant

ESG investment consultants advise clients on how to incorporate ESG factors into their investment portfolios. This course would be a valuable resource for anyone who wants to become an ESG investment consultant. You would learn about the different ESG factors that investors consider, how to evaluate ESG investments, and how to create ESG-compliant portfolios.

See salaries and explore the career path for ESG Investment Consultant

ESG Portfolio Manager

ESG portfolio managers are responsible for investing in companies that meet certain environmental, social, and governance (ESG) criteria. This course would be a great fit for anyone who wants to pursue a career in ESG portfolio management. You would learn how to use ESG factors to create socially responsible portfolios with better-than-average returns. You would also learn about the risks associated with ESG investing and how to avoid greenwashing.

See salaries and explore the career path for ESG Portfolio Manager

ESG Analyst

ESG analysts help companies meet reporting requirements, identify risks, and implement sustainable practices. A course like this one would provide the foundational knowledge to excel in this role. You would learn how ESG factors affect a company's profitability, how to incorporate ESG into your own portfolio, and how to evaluate ESG risks associated with climate change and diversity. In addition, you would learn how to use quantitative and qualitative measurements to evaluate ESG investments.

See salaries and explore the career path for ESG Analyst

Sustainability Analyst

Sustainability analysts evaluate companies' environmental and social performance. This course would be beneficial for anyone who wants to become a sustainability analyst. You would learn about the different ESG factors that companies consider, how to evaluate ESG performance, and how to report on ESG issues.

See salaries and explore the career path for Sustainability Analyst

Sustainability Consultant

Sustainability consultants help companies develop and implement sustainability strategies. This course would be a great fit for anyone who wants to become a sustainability consultant. You would learn about the different ESG factors that companies consider, how to develop ESG strategies, and how to measure ESG performance.

See salaries and explore the career path for Sustainability Consultant

Corporate Social Responsibility Manager

Corporate social responsibility (CSR) managers are responsible for developing and implementing CSR strategies for companies. This course would be a valuable resource for anyone who wants to become a CSR manager. You would learn about the different ESG factors that companies consider, how to develop CSR strategies, and how to report on CSR performance.

See salaries and explore the career path for Corporate Social Responsibility Manager

Ethical Investor

Ethical investors use their investments to promote social and environmental change. This course would be a great fit for anyone who wants to become an ethical investor. You would learn about the different ESG factors that investors consider, how to evaluate ESG investments, and how to create ESG-compliant portfolios.

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Impact Investor

Impact investors invest in companies and organizations that are making a positive social or environmental impact. This course would be a valuable resource for anyone who wants to become an impact investor. You would learn about the different ESG factors that investors consider, how to evaluate ESG investments, and how to create ESG-compliant portfolios.

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ESG Reporter

ESG reporters prepare ESG reports for companies. This course would be a valuable resource for anyone who wants to become an ESG reporter. You would learn about the different ESG factors that companies consider, how to prepare ESG reports, and how to communicate ESG performance to stakeholders.

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Green Bond Analyst

Green bond analysts evaluate the environmental impact of green bonds. This course would be a great fit for anyone who wants to become a green bond analyst. You would learn about the different ESG factors that investors consider, how to evaluate ESG investments, and how to create ESG-compliant portfolios.

See salaries and explore the career path for Green Bond Analyst

ESG Data Analyst

ESG data analysts collect and analyze data on companies' ESG performance. This course would be beneficial for anyone who wants to become an ESG data analyst. You would learn about the different ESG factors that companies consider, how to collect and analyze ESG data, and how to use ESG data to inform investment decisions.

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ESG Fund Manager

ESG fund managers manage investment funds that invest in ESG-compliant companies. This course would be a great fit for anyone who wants to become an ESG fund manager. You would learn about the different ESG factors that investors consider, how to evaluate ESG investments, and how to create ESG-compliant portfolios.

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ESG Risk Manager

ESG risk managers identify and manage ESG risks for companies. This course would be a beneficial resource for anyone who wants to become an ESG risk manager. You would learn about the different ESG risks that companies face, how to identify and assess ESG risks, and how to develop ESG risk management strategies.

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ESG Compliance Officer

ESG compliance officers ensure that companies are complying with ESG regulations. This course would be a valuable resource for anyone who wants to become an ESG compliance officer. You would learn about the different ESG regulations that companies must comply with, how to develop ESG compliance programs, and how to monitor ESG compliance.

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ESG Auditor

ESG auditors evaluate companies' ESG performance. This course would be a great fit for anyone who wants to become an ESG auditor. You would learn about the different ESG factors that companies consider, how to audit ESG performance, and how to report on ESG audit findings.

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ESG Impact

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