Module Six
Integrating ESG into Research
Summary
In partnership with TDI Sustainability, our ESG training program covers the key ESG issues, drivers and regulations on a sector-by-sector basis.
A comprehensive framework is then used to help analysts assess companies' performance on ESG and integrate these considerations into their research.
Target Audience
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Early-career and experienced mainstream buy-side or sell-side equity research analysts
Certificate
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Each participant receives the Denny Ellison certificate.
Course Format
Duration
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Introductory section - 2 hours
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We then cover ESG integration for 10 different sectors
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Each sector is covered in a minimum of 2 hours and a maximum of 4 hours
Delivery
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Video conferencing (Zoom, Webex)
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In person at our clients' offices
Region
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We are based in London, UK
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The module can be delivered globally
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We have delivered our courses to professionals in the USA, France, Hong Kong and India
Class Size
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Typical class size is 10 participants (min of 3)
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For individual mentoring, please contact us directly
Training Mandate
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The program is typically offered to in-house research analysts as part of:
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Learning & Development schemes
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Graduate Training Programs, or
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Research Management initiatives.
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Customisation
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We believe that ESG integration can only be done on a sector-by-sector basis, as the ESG issues, regulations and the earnings risks and potential are different for each sector.
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We offer 10 courses, each on a specific sector:
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Mining and commodities
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Oil & gas and utilities
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Industrial goods and renewables
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Tech, media and telecoms
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Chemicals and construction
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Health and pharmaceuticals
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Automotives and aerospace
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Transport
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Food, beverages, HPC and tobacco
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Retail, luxury goods, leisure
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Expected Results
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The program addresses some key skills gaps for mainstream analysts when it comes to ESG:
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How to make sense of the information provided by third-party ESG research houses;
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What specific factors to focus on within environmental, social and governance issues;
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How to cater the ESG analysis to a specific sector; and
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How to integrate an ESG analysis into company forecasts, valuations and investment cases.
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Syllabus
Section 1
Introduction to ESG
Introduction to Responsible Investment
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Why has ESG become such an important topic in the investment industry?
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ESG reporting frameworks and UK/EU ESG taxonomies
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Impact of ESG factors on companies’ financial performance
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Different approaches to ESG integration into research
Section 2
10 Sector Courses
How to integrate ESG into fundamental research on a sector-by-sector basis
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Sector-specific ESG issues and risks
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Company ESG performance assessment
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Integrating ESG factors into company financial forecasts
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Integrating ESG factors into valuation & risk modelling
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Integrating ESG into the equity story
Specialist Instructors
Catharina Hillenbrand von der Neyen, CFA. Catharina has more than 25 years of experience as an equity research analyst. She worked at Nomura, CA Cheuvreux and Allianz, covering the Energy, Utilities, Industrials and ESG sectors. She moved to the Carbon Tracker Initiative as an MD and head of research. She holds an MBAeq from ESSEC and a Diplom-Kaufmann from Mannheim.
"The energy transition has tremendous implications on the shape of future energy usage. Governments and regulators will influence its pace, but the transition is happening."
Alok Katre, ACA, CFA. Alok worked as a sell-side equity research analyst for nearly 17 years at Societe Generale CIB, HSBC and an S&P affiliate, covering Capital Goods, Aerospace & Defense, and Building Materials. Before that he worked at Merrill Lynch India in investment banking. He is engaged as a Faculty of Finance at SCMHRD and currently runs a personal finance consulting practice.
"ESG is a strong growth driver in Industrials. Balancing opportunities, risks and valuation impact is crucial for equity research analysts when it comes to ESG."
Guy Norman. Guy has nearly 10 years of experience in buy-side equity research covering a broad range of industries including Tech, Resources and Financials, He worked at Standard Life and Border to Coast Pensions. He started his career at Accenture in London covering UK Telecoms. He holds a Bachelor of Arts in Philosophy from the University of Cambridge.
"Data privacy and responsible AI are paramount in the Tech industry. The impact on investment decisions and company valuation can be substantial."
Our Proprietary ESG Valuation Methodology
Our report entitled 'The Real Value of Sin Stocks offers a unique valuation methodology for quantifying the impact of ESG public issues on companies operating in sectors with significant adverse ESG allegations. Our ESG module is based on some of the findings from this report.
