Advanced RI Analysis

Advanced Responsible Investment Analysis

Advanced RI Analysis provides an in-depth look at the use of sustainability data in fundamental investment analysis and stock valuation. The course helps investment practitioners develop a keen awareness of ESG factors and an understanding of when, where and how non-financial information can be used to add value in the investment decision making process.

Certification

After successful completion of the course, the user will be awarded a certificate of completion.

Learning outcomes

By the end of this course you will be able to:

Identify ESG factors and indicators that will affect financial performance
Understand how to assess the materiality of ESG factors
Understand the approaches and options for ESG analysis and integration
Apply ESG factors into financial models
Identify the many uses of sustainability data
Evaluate how a company’s fair value is impacted when adjusted to ESG performance
Recognise emerging regulations and standards linked to global sustainability goals, and understand their potential impact on business

USD GBP EUR AUD CAD

700.00

INCLUDES:

PRI Signatories receive 20% off
Course duration: 10 hours
Resources: supplementary readings
Access: 12 months
Language: English
Award: certificate of completion and a digital badge

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Course outline

INTRODUCTION

Understand the role of intangible value drivers in investment decisions
Identify the uses of ESG information
Recognise the focus of ESG integration

ESG INTEGRATION FRAMEWORK

Learn the PRI’s four-stage ESG integration model
Identify the relationship between ESG data and ESG analysis techniques
Understand the basic concepts needed to identify factors with the most material financial impact

STAGE 1: QUALITATIVE ANALYSIS

Identify ESG factors in sector analysis
Outline key environmental, social and business indicators that can impact financial value
Identify global trends and regulations and their impact on financial analysis
Map ESG factors in hypothetical case studies
Assess ESG issues using risk mapping methodologies
Measure the extent to which ESG issues will impact certain financial metrics

STAGE 2: QUANTITATIVE ANALYSIS

Identify the guiding principles for assessing ESG issues
Assess the degree to which ESG factors affect industry and company performance
Evaluate revenue, profit margins and operations using ESG data
Identify the entry points for ESG analysis in an DCF model
Understand ESG-related adjustments to WACC and key financial ratios
Assess and rank companies according to key ESG factors

STAGE 3: INVESTMENT DECISION

Explain how integrated company analysis influences investment decisions
Recognise the variety of investment mandates, strategies or fund objectives in which investment decisions are made
Recognise the varying options of ESG analysis and integration

STAGE 4: ACTIVE OWNERSHIP ASSSESSMENT

Explain how information and outcomes from engagement impacts investment decisions
Identify different types of engagement
Recognise engagement drivers and approaches

CASE STUDY: VALE

Use external ESG research and company reports to conduct a peer analysis
Model the impact of ESG issues on revenues, operating costs and cost of capital
Identify and model the impact of carbon pricing scenarios
Understand how ESG issues can impact capital expenditure, provisions and contingent liabilities
Understand the concept of investor time horizons
Identify priorities for and potential obstacles to engagement

CASE STUDY: UBER

Use company-provided information to benchmark ESG performance
Conduct scenario analyses of key ESG issues
Model the impact of social issues, GHG emissions reporting and city congestion
Apply sensitivity tests to integrated analysis
Identify priorities for and potential obstacles to engagement

SOURCING AND USING ESG INFORMATION

Identify the range of ESG data available
Understand how to use multiple forms of ESG data
Understand the role of reporting and recognise the challenges faced in collecting ESG data
Identify global initiatives, regulations and tools that support ESG integration

I have started the course having a sustainability background and the course has helped me to relate the ESG world with the financial sector. Now I am able to collaborate more effectively with the financial analysts for demonstrating ESG factors in value creation.

Maria Stoica Responsible Investment Analyst, ESG Consultant, UK

The course was a great way to live a day in the life of a buy side analyst. It allowed for a greater understanding of how and why the ESG offerings are becoming more robust and more important. The work that we are doing at ISS continues to reflect the ever-changing...

landscape of ESG work. ISS is uniquely positioned in that we have best-in-class offerings covering ESG, shareholder engagement, financial performance (EVA), and climate. This course really was a great way to bring to life the use cases and applications of ESG in the investment process.

Anthony Campagna Institutional Sales, ISS, United States