Focused on identifying and incorporating ESG factors in investment decision making, this course is our flagship training programme for responsible investment practitioners.
Applied Responsible Investment
PRI Academy's flagship course, Applied RI provides a comprehensive examination of responsible investment, from theory to practical application. Learners leave the course able to identify and analyse material ESG factors and to integrate sustainability data into financial modelling and existing investment processes.
After successful completion of the course, the user will be awarded a certificate of completion and a digital badge.
By the end of this course you will be able to:
- Define responsible investment and ESG issues.
- Recognise material ESG issues, trends and themes and how these fit into models and ratio work.
- Compare traditional analysis versus ESG analysis and how this relates to investment decision making.
- Understand practical approaches for ESG analysis at global, regional, industry and company levels.
- Identify corporate governance processes, best practice, key standards, frameworks and stakeholders.
- Understand models of engagement and design an engagement policy.
- Identify key considerations to implement a successful company-wide responsible investment programme.
- Integrate ESG data in financial modelling and assess ESG performance.
INTRODUCTION TO RI
- Define responsible investment and outline its drivers.
- Understand the business case for responsible investment.
- Define sustainability and its three pillars.
- Be aware of key ESG regulation.
- Understand that ESG issues can manifest at a global, regional, industry and company level.
- Discuss the risk and opportunities for investors created by ESG issues at all levels in which they manifest.
- Consider criticisms of ESG (anti-ESG narratives and greenwashing)
- Define environmental issues.
- Understand the relationship between business activities and ecosystem services.
- Identify environmental megatrends.
- Identify approaches to environmental analysis at a country, sector and company level.
- Describe the impacts of climate change on our planet, industry and investment performance.
- Differentiate between transition and physical risks.
- Outline policy actions implemented to counter climate change.
- Identify starting points for embedding responsible investment into your investment practices, including conducting climate risk assessments.
- Point to platforms through which relevant guidance can be accessed.
- Identify social issues.
- Outline the relationship between social issues, companies and investors.
- Assess the investment implications of human rights.
- Identify approaches to social analysis at a country, sector and company level.
- Identify key corporate governance issues.
- Understand why corporate governance is important to investors.
- Understand the main corporate governance principles.
- Recognise best practices in corporate governance.
- Understand different ways ESG can be incorporated into investment decision-making.
- Understand how ESG information enhances traditional financial analysis.
- Identify different types of ESG information relevant to financial analysis.
- Understand elements of ESG analysis, including the role of materiality.
- Apply a framework for ESG integration for company-specific analysis.
- Understand how to integrate ESG data into financial models and ratio work.
STEWARDSHIP AND ACTIVE OWNERSHIP
- Identify elements of a stewardship policy.
- Understand engagement and voting processes.
- Recognise the different types of, and approaches to engagement.
- Explain how the outcomes of engagement activities impact investment decisions, and how voting strengthens engagement.
- Identify evolving standards and practices in stewardship across asset classes.
IMPLEMENTING A RI PROGRAMME
- Understand the role of the investment value chain and client preferences.
- Identify the people, processes and tools related to responsible investment implementation.
- Identify the areas and elements to consider when implementing a successful responsible investment programme.
- Understand the role and requirements of the PRI, including the information you need for internal and external reporting on responsible investment activities.
CHOOSE YOUR CASE STUDY
- Tesla: ESG analysis in listed equity
- Walmart: ESG analysis in fixed income
- Explanatory videos from PRI experts
- Dedicated module on climate change
- Updated policy and regulatory content
- Practical examples of ESG in fixed income
- Capstone case studies: Tesla and Walmart
The online delivery of the study material is extremely well done. The information is relevant, efficient, and interesting. ESG will be a major component of investment analysis going forward and PRI is providing an excellent platform to educate the industry about ESG issues and opportunities.
The course provided a great introduction to responsible investing concepts and their application in asset management. The materials supplied for further reading gave more context around current issues, and I can see myself using those resources in the future.
Great introduction to responsible investment. Clear explanation of why the integration of ESG factors in decision making is so important. Essential knowledge for better risk management.