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ONLINE MODULE 1:
THE FUNDAMENTALS
OF ESG

Guide learning hours: TBC

CPD hours: TBC

Module aim: To provide financial advisors with the key ESG definitions recognising the growing ESG opportunity on both a macro and micro level.

Outcomes

Learning Outcome(s): The learner will be able to:

Explain key terminology relating to ESG, sustainable, responsible and ethical investment – demonstrating an understanding of what each area ‘is and is not’  

Articulate an overview of this area of investment, including being able to recognise the different issues and approaches offered by fund managers, their purpose and aims  

Challenge commonly held myths about ESG  

Recognise why public (client) opinions are changing on issues like climate change  

Recognise current and future regulatory changes that are driving growth of ESG and sustainable investment 

Recognise the opportunities associated with offering ESG/sustainable investment options for you and your firm 

Unit 1 – market overview

# unit & time

Content

Map to learning objective

1.1

Defining ESG (the E, the S and the G), sustainable, ethical and responsible/stewardship meanings and how they impact stock selection and asset management

LOL 1

1.2

‘What makes ESG and related areas different from other investment types?’ What client needs do they meet? ‘What challenges funds do they aim to address?’

LOL 1, LO2

1.3

Myth busting: why a greater focus on ESG risks and opportunities makes sense.   Reference the three myths listed above (performance, strategy options and demographic)

LOL 1

Unit 2 – implications for your business

# unit & time

Content

Map to learning objective

2.1

Macro: Explore the implication of changing attitudes to issues such as climate change. The current market (need) and future/evolving trends in ESG investing

LOL 4

2.2

Micro: Make sense of the growing ESG & sustainable, responsible and ethical investment (referred to here as ESG) opportunity (understanding drivers of changing behaviours)

LOL 4

2.3

Explore the impact of emerging and future regulation and how will it affect client advice in your organisation – include international, national and financial services specific changes

LOL 5

2.4

Recognise the opportunities presented by this area (persistency, referrals, loyalty, closer client relations/trust)

LOL 5

ESG morningstar2