CFA Certificate in ESG Investing

Initially developed by CFA UK in 2019, from 1st September 2021, the Certificate in ESG Investing is owned and administered by CFA Institute to provide worldwide access to this global credential.

This certificate is designed to meet the investment sector’s increasing demand for further education, guidance and standards around ESG (environmental, social and governance).

The Certificate in ESG Investing:

is designed to equip investment professionals with a base knowledge and skillset to integrate ESG factors into the investment process. With no formal entry criteria, it is suitable for a broad range of financial services professionals (not just investment-related) who are keen to understand ESG issues;
consists of a one-part, computer-based testing exam consisting of 100 questions in 2 hour and 20 minutes, with remote exam testing now available;
just has multiple choice types of questions in this exam, and no longer has item set questions.

Certificate Syllabus and Topic Weights

Overview to ESG Investing and the ESG Market 8–15%
Environmental Factors 8–15%
Social Factors 8–15%
Governance Factors 8–15%
Engagement and Stewardship 5–10%
ESG Analysis, Valuation and Integration 20–30%
ESG Integrated Portfolio Construction and Management 10–20%
Investment Mandates, Portfolio Analytics and Client Reporting 5–10%

This course goes for a broad framework approach, teaching its candidates how to analyze and integrate material ESG factors into their day-to-day investment roles. It is designed for investment professionals in all roles, from asset management to sales and distribution, as well as students seeking a career as an ESG analyst in the investment sector.

What's inside

Syllabus

1. ESG investing is an approach to managing assets where investors explicitly acknowledge the relevance of environmental, social, and governance (ESG) factors in their investment decisions, as well as their own role as owners and creditors. ESG investing also recognizes that the generation of long-term sustainable returns is dependent on stable, well-functioning and well-governed social, environmental, and economic systems.

2. The concept of ESG investing is closely related to the concept of investees’ corporate sustainability. Related to this, corporate social responsibility (CSR) is a broad business concept that describes a company’s commitment to conducting its business in an ethical way.

COURSE MATERIAL

1. In 1987, a commission put together by the UN issued the Brundtland Report, also called Our Common Future, which introduced the concept of sustainable development and described how it could be achieved.

2. The concept of responsible investing dates back to the 17th century. One of the first ethical mutual funds that moved to screens based on religious traditions was the Pioneer Fund, which was launched in 1928. The modern institutionalization of ethical exclusions arguably began at the height of the Vietnam War in 1971, with the establishment of the Pax World Fund.

COURSE MATERIAL

1. The range of environmental factors that have a material impact on investments are broad and far reaching. They include but are not limited to:

a. a rapidly changing climate,

b. natural resources (including water, biodiversity, land use and forestry, and marine resources), and

c. pollution, waste, and the circular economy.

2. Driven by the emissions of greenhouse gases (GHGs) into the atmosphere, accelerating climate change carries significant risks to human health, economies, and ecosystems. Effective responses will involve a combination of climate mitigation and adaptation measures.

COURSE MATERIAL

Overview to ESG Investing and the ESG Market 8–15%
Environmental Factors 8–15%
Social Factors 8–15%
Governance Factors 8–15%
Engagement and Stewardship 5–10%
ESG Analysis, Valuation and Integration 20–30%
ESG Integrated Portfolio Construction and Management 10–20%
Investment Mandates, Portfolio Analytics and Client Reporting 5–10%

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Provides a broad framework for analyzing and integrating material ESG factors, which is essential for investment roles

Covers engagement and stewardship, which are increasingly important aspects of responsible investing and corporate governance

Explores environmental, social, and governance factors, which are the core pillars of ESG investing and analysis

Examines ESG analysis, valuation, and integration, which are critical for making informed investment decisions

Discusses investment mandates, portfolio analytics, and client reporting, which are essential for communicating ESG performance

Requires candidates to pass a computer-based exam, which may pose a barrier for some learners due to testing conditions

Reviews summary

Cfa esg investing certificate preparation

According to learners, the CFA Certificate in ESG Investing provides a strong foundational overview of environmental, social, and governance factors relevant to the investment process. Many students find the material well-structured and aligned with the official CFA syllabus, making it a valuable resource for understanding key ESG concepts. While the course is seen as helpful for building base knowledge, some reviewers suggest that the content can be dense and that additional study or practice questions may be required for exam preparation. Overall, it is viewed as a useful step for finance professionals looking to integrate ESG into their work.

Highly relevant for finance industry roles focusing on ESG.

"As a finance professional, I found the content directly applicable to current market trends and client discussions."

"This course is highly relevant for anyone working in investment management or financial advisory with an ESG focus."

"It provides practical knowledge that I can immediately start applying in my daily work."

"Very useful for career development in the growing field of sustainable finance."

Follows the official syllabus effectively for study.

"The structure of the course follows the CFA syllabus very closely, which is helpful for studying."

"I appreciated how the modules were organized according to the official topic weights."

"The course content is well-organized and makes it easier to navigate the different ESG topics."

"Its structure aligns well with the requirements for the CFA ESG exam."

Provides a solid base in ESG investing principles.

"This course gave me a really solid foundation in the core concepts of ESG investing."

"I found the material very helpful for getting started and understanding the broad landscape of ESG."

"The course covers all the necessary topics to build a strong base knowledge for finance professionals."

"It served as an excellent introduction to ESG integration in investment decisions."

Material can be dense and requires dedicated effort.

"Some parts of the course material were quite dense and required multiple readings to fully grasp."

"I found the amount of information packed into certain sections challenging to process."

"Requires significant focus and dedicated study time to absorb the concepts fully."

"The reading material can be dense, which makes studying feel like a significant undertaking."

Additional resources might be needed for exam readiness.

"While good for understanding concepts, I felt the course alone might not be enough for passing the exam."

"I needed to supplement the course material with additional practice questions and mock exams."

"The course is a great starting point, but be prepared to seek other resources for comprehensive exam preparation."

"Consider using this course alongside official practice tests or other study providers."

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 CFA Certificate in ESG Investing - For Exams in 2025 with these activities:

Review Key Financial Concepts

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Reinforce foundational financial knowledge to better understand ESG integration into investment analysis.

Browse courses on Financial Statement Analysis

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Review financial statement analysis techniques.
Practice calculating key financial ratios.
Familiarize yourself with valuation methodologies.

Review 'Sustainable Investing: Revolutions in Theory and Practice'

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Gain a deeper understanding of sustainable investing principles and practices.

View Modern China: Financial Cooperation for Solving... on Amazon

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Read the book's introduction and key chapters.
Summarize the main arguments and concepts.
Relate the book's content to the course syllabus.

Review 'ESG and Responsible Institutional Investing Around the World: A Critical Review'

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Expand your understanding of global ESG investing practices and challenges.

View Putting Knowledge to Work on Amazon

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Read the book's introduction and chapters on specific regions.
Compare and contrast ESG approaches in different countries.
Identify key challenges and opportunities for global ESG investing.

Three other activities

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Write a Blog Post on ESG Integration

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Solidify understanding of ESG integration by explaining its benefits and challenges in a blog post.

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Research current trends in ESG integration.
Outline the key points for your blog post.
Write a draft and revise for clarity.
Publish your blog post on a platform like LinkedIn.

ESG Portfolio Analysis Project

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Apply ESG principles to analyze and construct a sample investment portfolio.

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Select a sector or industry for your portfolio.
Identify relevant ESG factors for that sector.
Research companies with strong ESG performance.
Construct a sample portfolio and justify your choices.
Analyze the portfolio's ESG risk and return profile.

Create an ESG Risk Assessment Report

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Develop a practical skill in assessing ESG risks for investment decisions.

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Choose a company or industry to analyze.
Identify relevant ESG risk factors.
Gather data on the company's ESG performance.
Assess the potential impact of ESG risks on the company's value.
Write a report summarizing your findings and recommendations.

Career center

Learners who complete CFA Certificate in ESG Investing - For Exams in 2025 will develop knowledge and skills that may be useful to these careers:

ESG Analyst

An ESG Analyst evaluates environmental, social, and governance factors to assess the sustainability and ethical impact of investments. This role focuses on integrating ESG considerations into the investment process, which is a core aspect of this course. The course provides a broad framework for analyzing material ESG factors. This is critical for any ESG Analyst who seeks to understand how to apply these factors in day-to-day investment decisions. This course also covers ESG analysis, valuation, and integration, which helps build foundational skills for any ESG Analyst.

See salaries and explore the career path for ESG Analyst

Portfolio Manager

A Portfolio Manager constructs and manages investment portfolios to meet specific financial goals. The role requires integrating ESG factors, which this course directly addresses through its focus on ESG integrated portfolio construction and management. This is critical to the function of any portfolio manager. The course highlights the importance of considering the impact of ESG factors in investment decisions. This is aligned with the objectives of a Portfolio Manager aiming to balance returns with sustainable and ethical considerations. The course also covers portfolio analytics and client reporting, which are important responsibilities of a Portfolio Manager.

See salaries and explore the career path for Portfolio Manager

Investment Manager

An Investment Manager makes decisions regarding the allocation of assets within a portfolio to maximize returns while managing risks. This role is directly relevant to the course, which discusses ESG integrated portfolio construction and management. The course provides insights into how to integrate environmental, social, and governance factors into the investment process, which would make an investment manager more well-rounded. The course's emphasis on a broad framework approach for analyzing material ESG factors is directly applicable to the work of an Investment Manager.

See salaries and explore the career path for Investment Manager

Impact Investing Analyst

An Impact Investing Analyst evaluates investment opportunities that aim to generate both financial returns and positive social or environmental impact. This course may help an Impact Investing Analyst because it focuses on integrating ESG factors into investment decisions. The course provides a broad framework for analyzing material ESG factors, a key skill for any Impact Investing Analyst. The course's emphasis on understanding and integrating ESG considerations into investment strategies is directly relevant to the work of an analyst who focuses on impact investing.

See salaries and explore the career path for Impact Investing Analyst

Sustainability Consultant

A Sustainability Consultant advises organizations on how to integrate sustainable practices into their operations and investments. This course helps to build a strong base understanding of environmental, social, and governance (ESG) factors and how these factors can be integrated into investment decisions, which is necessary for a Sustainability Consultant. The course highlights how to analyze material ESG factors, an important skill for any Sustainability Consultant. Specifically, this role requires knowledge of the topics covered in the course, which include ESG analysis, valuation, and integration. The course content is directly applicable to the strategic advice a Sustainability Consultant provides.

See salaries and explore the career path for Sustainability Consultant

Corporate Social Responsibility Manager

A Corporate Social Responsibility Manager develops and implements strategies that promote ethical and responsible business practices. The course provides a strong foundation for integrating sustainability and ethics into business operations, which directly supports the role of a CSR Manager. The course material provides coverage on ESG principles, which a Corporate Social Responsibility Manager needs to implement, especially regarding how the generation of long term sustainable returns is dependent on stable systems. This is aligned with the objectives of any CSR Manager, making this course useful.

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

Financial Advisor

A Financial Advisor provides guidance to clients on investment strategies and financial planning. As ESG considerations become more important to investors, this course will help a Financial Advisor advise clients on these topics. This course focuses on how to integrate ESG factors into the investment process, an important skill for a Financial Advisor, especially those who work with clients who prioritize sustainable investing. The course provides a framework for understanding ESG issues. This helps a Financial Advisor make informed recommendations.

See salaries and explore the career path for Financial Advisor

Risk Analyst

A Risk Analyst assesses potential risks to an organization's investments or operations. This course may help a Risk Analyst by highlighting how environmental, social, and governance factors create risks and opportunities. This course covers how to analyze material ESG factors, which provides useful information for a Risk Analyst. The course material, covering topics like environmental and social risk, can help a Risk Analyst identify and evaluate risks related to ESG. This supports their ability to better assess potential financial and reputational impacts.

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Hedge Fund Analyst

A Hedge Fund Analyst conducts research and analysis to inform investment strategies for a hedge fund. This course may be useful for a Hedge Fund Analyst because it covers different approaches to integrating environmental, social and governance factors in investments. With the increasing interest in ESG and sustainable investing, a Hedge Fund Analyst who incorporates these considerations may find this information helpful. The course provides a foundation for understanding ESG market trends and analysis, which is useful for any analyst working in a hedge fund.

See salaries and explore the career path for Hedge Fund Analyst

Private Equity Analyst

A Private Equity Analyst evaluates potential investment opportunities in private companies. This course may be helpful to a Private Equity Analyst as they start to focus on environmental, social and governance factors that are becoming increasingly important to companies. This course highlights how to integrate material ESG factors into investment decisions. The course's coverage of ESG analysis, valuation and integration provides additional tools for evaluating private equity deals. The course's approach to portfolio construction provides another lens through which to evaluate potential deals.

See salaries and explore the career path for Private Equity Analyst

Investment Banking Associate

An Investment Banking Associate typically supports the execution of financial transactions such as mergers, acquisitions, and capital raising. This course may help an Investment Banking Associate by introducing the expanding role of environmental, social, and governance factors in investment decisions. The course provides a framework for understanding ESG considerations, which adds a valuable perspective to the work of an Investment Banking Associate. Knowing about ESG analysis, valuation, and integration supports a comprehensive approach to investment decisions. This helps in a wide range of banking transactions.

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Fundraising Manager

A Fundraising Manager develops and implements fundraising strategies to support an organization’s mission. This course may provide insights into how to attract investors who focus on sustainability and ethics. The course introduces frameworks for analyzing environmental, social and governance factors. This may inform how a Fundraising Manager creates an investment story. The course may provide helpful language when speaking to those interested in investments with a social impact.

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Actuary

An Actuary uses statistical and mathematical methods to analyze and manage risk. This course may be helpful because it introduces the environmental, social and governance factors that are increasingly seen as sources of risk. The course provides a framework for understanding ESG considerations, which may lead to a better understanding of risk assessment. An actuary with ESG expertise may be able to better understand the long-term impacts of climate change or social issues.

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Commercial Lender

A Commercial Lender evaluates credit risk and approves loans for businesses. This course may be useful because environmental, social, and governance factors are increasingly important considerations when evaluating businesses. This course highlights how to integrate material ESG factors into decision making. The course can provide insights that support a Commercial Lender's evaluation of a company's long term viability. This course may offer a different perspective on risk assessment for a lender.

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Real Estate Investment Analyst

A Real Estate Investment Analyst evaluates properties and investment opportunities in the real estate sector. This course may be helpful because there are increasing concerns around environmental and social factors in real estate. This course introduces environmental, social and governance factors to those who are new to these issues. This course can help an analyst understand how these factors impact property values and investment returns. This would bring another dimension to their analysis.

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Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in CFA Certificate in ESG Investing - For Exams in 2025.

Modern China

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Provides a comprehensive overview of sustainable investing, covering various strategies and approaches. It explores the theoretical underpinnings of ESG integration and offers practical guidance for implementation. It valuable resource for understanding the evolution of sustainable investing and its current state. This book adds breadth to the course by covering a wide range of sustainable investing topics.

Modern China: Financial Cooperation for Solving...

Kindle Edition

Putting Knowledge to Work

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Offers a critical examination of ESG and responsible investing practices across different regions. It explores the challenges and opportunities associated with integrating ESG factors into institutional investment strategies. It is particularly useful for understanding the global landscape of ESG investing and the diverse approaches adopted by different investors. This book adds depth to the course by covering a wide range of global ESG investing topics.

Putting Knowledge to Work

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Putting Knowledge to Work

Kindle Edition

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CFA Certificate in ESG Investing - For Exams in 2025

What's inside

Syllabus

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Reviews summary

Cfa esg investing certificate preparation

Activities

Career center

Reading list

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