Driving Sustainable Investment Strategies

From the study guide

Course Outline

  1. Market drivers for ESG
  2. Global challenges and SDGs
  3. UN SDGs and corporate reporting
  4. Investor initiatives and motives
  5. UN Principles for Responsible Investment
  6. Data availability and information flow
  7. Carbon data and ratings
  8. ESG rating agencies and methodologies
  9. Integrated ESG data providers

1. Market drivers for ESG

Key Concepts & Definitions

Public Perception as a driver for ESG
The general awareness and attitudes of the public towards sustainability issues influence the demand for ESG integration. Increased public concern can motivate companies and investors to prioritize ESG factors to maintain legitimacy and reputation.

Regulatory Framework influencing ESG demand
Legal and regulatory measures, such as increased disclosure requirements (e.g., EU SFDR), shape market behavior by mandating transparency on sustainability risks and impacts, thereby increasing demand for ESG-related information and practices.

Investor Demand for ESG factors
The growing preference among investors for incorporating environmental, social, and governance considerations into investment decisions. This demand drives companies to improve ESG disclosures and performance to attract capital.

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Practice quiz preview

1. What is the primary role of the Carbon Disclosure Project (CDP) in climate-related corporate reporting?

2. What is a primary consequence of improved data availability and information flow within the ESG ecosystem?

3. When was the UN Principles for Responsible Investment (UN PRI) established?

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Flashcard preview

Market drivers for ESG

Public perception, regulation, investor demand, data availability

Global challenges — SDGs?

Major issues identified by UN SDGs threatening sustainability

UN SDGs — corporate reporting?

Framework for companies to align with global sustainability targets

Investor motives — main?

Data gathering, influence, competitive advantage, regulation avoidance

UN PRI — role?

Encourages responsible investment through six voluntary principles

Data flow — key sources?

Company disclosures, NGOs, media, rating agencies

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Frequently asked questions

What does the Driving Sustainable Investment Strategies study guide cover?

It covers the core concepts of Driving Sustainable Investment Strategies, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.

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How many questions are in the Driving Sustainable Investment Strategies quiz?

The practice quiz has 9 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.

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How do I study Driving Sustainable Investment Strategies with flashcards?

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