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ESG Investing and Analysis: A Practitioner’s Guide
Discipline: Investing
First published:
Supported by investor appetite and global regulation, managing environmental, social and governance (ESG) risks have now become part and parcel of the investment process. Yet, incorporating these extra-financial insights in investment analysis is still novel to many investors and can be challenging because of the often-conflicting opinions provided by ESG providers and differences in government policies and ambitions. Using detailed case studies and through thorough analysis, ESG Investing and Analysis: A Practitioner’s Guide is designed to be a practical guide that analyses the most up-to-date and common ways in which ESG considerations are being taken in the investment process and is suitable for both practitioners and students, regardless of the level of knowledge or experience in ESG.
In this book, Marie Lehmann, Martina Macpherson and Daniel Ung demonstrate and analyse the latest trends and techniques in ESG investing. Using concrete examples put together by renowned investment experts, different aspects of ESG portfolio construction approaches are discussed in detail. These are then supplemented by case studies, written by experts from the world’s largest pension funds as well as chief investment officers, that are designed to translate theory into practice. Besides examining the financial aspects of sustainable investing, the book also focuses on current ESG policy and regulatory developments, as well as insights from leading practitioners and academics who have helped shape the global sustainable finance landscape over recent decades.
Contents
Linking ESG scenarios to real economy outcomes
Analysing ESG policy, market and portfolio construction considerations
Case Study 1: Applying ESG considerations to a pension fund’s equity portfolios
Case Study 2: Applying ESG concepts to wealth management portfolios
Managing environmental and climate transition risks and opportunities within portfolios
Considering physical climate risks and resilience in real asset investment
Case Study 3: Practical issues and considerations for implementing a Net Zero emissions strategy for asset owners
Evaluating social criteria in fundamental and thematic investment portfolios
Case Study 4: Defining impact investing for today‘s ethical investor – evaluating the efforts of Evangelisches Johannesstift
Developing governance and active ownership frameworks for investment analysis
Case Study 5: Applying active ownership and stewardship to a pension fund portfolio
Identifying ESG risks and opportunities in alternative investments
Reviewing the EU regulatory framework for ESG investors
Assessing data and disclosure challenges in ESG investing
Corporate social responsibility across industries: When and who can do well by doing good?
Reflecting on how ESG investing, accounting and governance have evolved over time