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CFA Institute Launches ESG Guide for Investment Professionals

19 November, 2015
United States
Guide expands portfolio of resources for environmental social & governance issues

CFA Institute, the global association of investment management professionals, has added Environmental Social & Governance Issues in Investments: A Guide for Investment Professionals to its portfolio of ESG resources. The Guide was developed in response to growing interest among investment professionals to better incorporate ESG issues in investment analysis, and serves as a comprehensive introduction to ESG considerations. The Guide is a comprehensive overview of the state of practice, and shares the views of investment professionals and CFA Institute members. This follows a recent CFA Institute member survey of investment professionals worldwide that revealed almost three-quarters of respondents take ESG issues into consideration in the investment process.

“Awareness of ESG issues in investing has grown substantially in the last decade, from energy efficiency to employee relations to bribery and corruption,” said Usman Hayat, CFA, content director, Islamic Finance & ESG issues investing. “How these issues impact investment management is still not well understood and certain myths are common. This Guide provides a clear explanation of ESG risks and opportunities, debunks common myths, and helps investors better understand and evaluate social and environmental issues to make better decisions.”

The Guide explains the background and trends around ESG issues, it offers descriptions of six common methods for applying ESG factors in portfolios, and it discusses the current topics of debate and innovation within this area. It explores the variety of methods now being used by both value-motivated and values-motivated investors and important challenges facing the evolving practice of considering ESG issues in investing. A key idea in the discussion is that systematically considering ESG issues will likely lead to more complete investment analyses and better-informed investment decisions.

CFA Institute offers portfolio of ESG resources for investment professionals

In addition to the Guide, CFA Institute has an extensive portfolio of resources on ESG issues, including a free online course The ESG-100 and videos and podcasts on the topic. Furthermore, the CFA Program curriculum provides introductory coverage of ESG issues, including corporate governance and ESG factors. Learn more about ESG resources here.

The Guide debuts at the Boston Security Analysts Society, Inc. (BSAS) third annual seminar Sustainable Investing: Moving Into The Mainstream on November 19, 2015. The event will explore current themes and best practices in sustainable investing. More information can be found here.

CFA Institute
CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow.