Environmental, Social, and Governance (ESG) Fundamentals for Financial Decision-Making

Course details

Whether you’re in investment banking, commercial banking, private industry, or investment management, you will need to understand the key concepts of Environmental, Social, and Governance (ESG). This detailed course guides you through what you need to know. Learn about materiality and its significance in corporate strategies. Compare traditional approaches to systems thinking and consider how to integrate these approaches into ESG performance assessments. Discover how to evaluate company ESG maturity, disclosure practices, and performance metrics. Get practical insights through detailed ESG case studies and identify crucial risks and opportunities. Plus, learn to build effective ESG scorecards and criteria for assessing environmental, social, and governance issues. When you complete the course, you will be well-equipped to navigate the complexities of ESG and drive positive impact within your organization.

Concepts

0. Introduction

01 - Environmental, social, and governance (ESG) fundamentals

1. Key Concepts in ESG

02 - Understanding ESG - Importance and impact
03 - Key ESG factors and common challenges
04 - Core concepts in ESG explained
05 - Corporate pressures and ESG stakeholder expectations
06 - Essential ESG considerations for companies and investors

2. ESG and Systems Thinking - The Fundamentals

07 - Introduction to systems thinking in ESG
08 - Comparing traditional vs. systems thinking in ESG
09 - Practical examples - Traditional vs. systems thinking in ESG
10 - How to visualize systems thinking for ESG
11 - Systems thinking in ESG - Visual examples
12 - Systems thinking approach to ESG performance assessment
13 - Integrating systems thinking with ESG materiality

3. Materiality

14 - Materiality in ESG - A detailed breakdown
15 - Financial, legal, and policy drivers in ESG materiality
16 - ESG materiality - Industry norms, trends, and innovation
17 - ESG stakeholder risks and opportunities
18 - Stakeholder capitalism - ESG's role in modern business
19 - Shareholder risks and opportunities in ESG
20 - Employee-related risks and opportunities in ESG
21 - Customer impact - ESG risks and opportunities
22 - Supplier relations - ESG risks and opportunities
23 - Community impact in ESG - Risks and opportunities
24 - ESG risks with government and nonprofits
25 - Industry-specific ESG issues and considerations
26 - ESG materiality vs. immateriality - Key differences
27 - How companies respond to societal events in ESG

4. Evaluating ESG - Maturity, Disclosure, and Performance

28 - Evaluating ESG maturity and best practices
29 - Assessing ESG disclosure quality
30 - How to evaluate ESG performance metrics
31 - Building an effective ESG scorecard
32 - Step-by-step ESG scorecard breakdown

5. ESG Case Study

33 - ESG case study - Introduction and overview
34 - Identifying environmental material issues in ESG
35 - Identifying social material issues in ESG
36 - Identifying governance material issues in ESG
37 - Setting ESG scoring criteria and risk weightings

Conclusion

38 - Course summary

Environmental, Social, and Governance (ESG) Fundamentals for Financial Decision-Making

Authors

Corporate Finance Institute (CFI)