The ABCs of ESG investing
Season 1
One-hour webinars introducing ESG essentials, stewardship, ESG integration, impact investing and advocacy. Recorded as live webinars in 2021.
Season 2
One-hour webinars covering thematic topics on net-zero imperative, social inclusion and sustainable real estate. Recorded as live webinars in 2022.
Season 3
New for 2024, season 3 features shorter video explainers by our in-house experts, focusing on engagement, sustainable fixed income and the ‘green factor’.
Season 1 (2021)
The purpose of investment: ESG essentials
In this seminar we cut through the noise and present our sustainability and investment glossary, spanning definitions of ESG factors to stewardship. We will also examine the different styles of responsible investing.
Learning outcomes
- Understanding the purpose of the investment industry and the role of investing with sustainability and stewardship factors
- A clear perspective on ESG and sustainability-related terminology
- Understand the range and evolution of ESG investing approaches
Stewardship: A force for change
Today, EOS at Federated Hermes is one of the largest stewardship resources globally, with more than £938bn in assets under advice. In this seminar, we will explore the purpose of stewardship, its importance as the investment industry’s social licence to operate, and its essential role in lowering risk, delivering sustainable outcomes and strengthening long-term returns. We will also examine evidence that demonstrates how stewardship pays off and present best practice approaches that are being used across different asset classes.
Learning outcomes
- Explain the role of stewardship in investment
- Understand the different approaches to carry out stewardship across asset classes
- Demonstrate stewardship in practice and the benefits achieved
A practical guide to integrating ESG and engagement insight
As a pioneer of ESG investing and engagement, we act on evidence that our investment approach supports long-term outperformance and change. In this seminar, we will highlight how extensive research demonstrates the link between the integration of ESG and stewardship and risk and returns. We will explain the different integration approaches available making a distinction between thematic and mainstream investment. We will also review best practice approaches in both public and private markets, and describe what investors should look for when judging the efficacy and credibility of an investment manager’s integration approach.
Learning outcomes
- Understand the why of ESG and stewardship integration
- Understand best practice in the integration of ESG and engagement insights in public and private markets
- Provide the ability to discern between greenwashing and credible ESG and stewardship integration
Delivering positive outcomes: Impact investing
By integrating ESG analysis and stewardship into the way we invest, and launching the world’s first equity and bond strategies driven by engagement on the Sustainable Development Goals (SDGs)1, we have always been at the vanguard of responsible investment. In doing so, we have delivered sustainable outcomes for investors since day one. In this seminar, we will examine the fundamentals of impact investing, how impact can be measured, and how companies and investors can contribute to the SDGs. We will also demonstrate how investment and stewardship can lead to the delivery of tangible social outcomes alongside outstanding investment performance.
Learning outcomes
- Describe impact investing, the SDGs and their importance to investors
- Review the range of approaches currently available to measure impact and SDG performance
- Understand how impact investing and stewardship can deliver sustainable outcomes in practice
Advocating for a better future for investors and society
In this seminar, we will examine how asset managers can constructively engage with regulators and policymakers globally to ensure the whole economic system – and the investment industry in particular – works in the interests of investors and society as a whole. As background, we will provide a brief history of advocacy in the investment industry as well as the key changes that have occurred as a result of advocacy efforts. We will address governance, environmental, social and other market failures that may prevent the financial system from operating in the best interests of its ultimate asset owners. We will also explain how pension funds and other institutional investors can play a role in addressing the major ESG issues including climate change and inequality in different countries and sectors. Our Responsibility Office, which develops and leads the implementation of our advocacy positions, will provide a range of examples of its work.
Learning outcomes
- A history of advocacy in the investment industry
- An overview of today’s pressing public policy issues
- Understand how the investment industry can help advocate for change in the industry
Season 2 (2022)
The net-zero imperative
While 90% of the global economy has now pledged net zero carbon emissions over the next 30 to 50 years, ambitions still fall short of the goals laid out in Paris Climate Accords. Even after 2021’s COP26 climate change conference, updated government pledges would put the world on a 1.8°C post-industrial warming trajectory, according to estimates from the International Energy Agency. Although the exact route to net zero remains unclear, the imperative for investors is not: only a massive combined effort by all stakeholders can achieve a 1.5 °C pathway.
Learning outcomes
- Understand the backdrop to the climate crisis
- Explore what needs to be done to avert catastrophic global warming
- Learn about the role of active management in mitigating CO2 emissions
All together now: Why social inclusion matters
Social inclusion is the foundation for shared prosperity. In its absence, inequality thrives and poverty gains a foothold. With a world subject to massive social transformation, rising urbanisation, climate change, seismic shifts in technology and transformative demographics, the question of inclusion sits at the heart of everything we do as responsible investors.
Learning outcomes
- Understand how social exclusion undermines prosperity
- Explore how social inclusion has the potential to transform global GDP
- Learn what investors can do to bring about change
A design for life: Building better through sustainable real estate
According to the World Economic Forum, the real estate sector consumes over 40% of global energy each year, buildings are responsible for 20% of global greenhouse gas emissions, and the construction industry consumes c.40% of the world’s raw materials annually.¹ Against this backdrop, it’s little wonder that sustainable real estate is considered a critical element in achieving momentum towards the world’s net zero ambitions.
Learning outcomes
- Understand the carbon challenge facing the real estate sector
- Explore paths to remediating the industry’s carbon footprint
- Learn how investors in real estate can engage with stakeholders and advocate for more sustainable approaches
Season 3 (2024)
The ESG factor: Investing in ‘greenium’
Clean energy, storage, transportation and building are examples of ‘green’ industries with strong economic tailwinds that could spur investor interest around the world. Against this backdrop, countries continue to compete to create more incentives for companies to attract their green business and take advantage of this accelerating transition. In this module we learn that while the current focus is on risk mitigation, the green economy likely will continue to gain acceptance because of the immense revenue and economic growth opportunities for companies, countries and investors. If it makes dollars, it makes sense, even if new names must be coined.
Learning outcomes
- Understand the potential for investors to seek out and benefit from ESG tailwinds.
- Learn how ESG factors can be identified and acted upon.
- Explore both how policymakers’ decisions have the potential to supercharge returns from companies at the forefront of ESG.
Stewardship: What true engagement looks like
Many asset managers talk the talk when it comes to engaging with portfolio companies but how many walk the walk? True engagement takes time, expertise and resourcing and only a select few managers truly put their money where their mouth is. In this module, we hear from engagers who work in the field encouraging companies to do better. Their efforts enable institutional shareholders around the world to meet their fiduciary responsibilities and become active owners of their assets. By doing so they help to build a global financial system that can deliver improved long-term returns for investors and more sustainable outcomes for society.
Learning outcomes
- Understand how engagement works in practice.
- Learn strategies used by engagers to gain access and build influence.
- Explore the potential pitfalls and challenges of the engagement process.
