This module provides an overview of sustainable and responsible investments. The module is intended as a practical introductory guide on topics ranging from responsible invesment approaches to impact measurement, as well as regulations and impact investment themes. The main goal is to understand the different types of approaches and the challenges of assessing impact, in order to better discern the different levels and types of impact of an investment or business. A review exam is found at the end of the course.
Average time needed for the module (indicative): ca 1h30-2h00 (excluding review questions).
Course structure
- Overview and Definitions
- SRI, ESG, Impact Investing
- Industry evolution
- Responsible Investment Approaches
- ESG Integration
- ESG Ratings
- Negative Screening
- Positive Inclusion
- Impact Investing
- Principles for Responsible Investment
- Impact Measurement
- Theory of Change
- International Standards and Metrics
- Impact Measurement and Carried Interest
- Environmental Impact
- Regulatory Frameworks
- European Sustainability Regulations Overview
- European Sustainable Finance Disclosure Regulation
- European Taxonomy Regulation
- European Non-Financial Reporting Directive
- European Corporate Sustainability Reporting Directive
- Regulations outside of Europe
- Investment Products
- Introduction
- Screened ETFs and Mutual Funds
- Sustainable ETFs and Mutual Funds
- Listed Impact Funds
- Unlisted Impact Funds
- Faith-based mutual funds
- Risk and Returns of Responsible Investments
- Selected Research Studies
- Considerations on risks and returns
- Sustainability and Impact Themes
- Overview of main investment themes
- Review Questions