This course is part of the The Materiality of ESG Factors Specialization

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Witold Henisz

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The Materiality of ESG Factors SpecializationUniversity of Pennsylvania

About this Course

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In this course, you will explore the foundations upon which modern-day ESG was built, how market forces react to ESG, and ways to create and maintain value using ESG investment strategies. You will also learn about the five pathways of materiality, and how those interplay with or against ESG performance.
You will examine the many challenges that corporations face when it comes to leveraging ESG investing into their portfolios, and how the changing landscape of ESG is making this an area of untapped potential when it comes to the financial workings of businesses today. You'll also learn from real-life case studies how you can assess risk, create better risk management policy, and build a map to identify valuable areas of opportunity and create better decision-making approaches. Lastly, you will look at portfolio optimization and the utilization of ESG factors to maximize returns in addition to examining different funds, their fee structures, and how investors can blend ESG into their investment portfolio.

By the end of this course, you will know the best practices for creating a solid risk management plan and how to create a culture that is sensitive to ESG. You will better understand the history and framework behind ESG, and how to create a path forward using smarter methods to identify risk, navigate ESG issues, and reach ESG investing goals.

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Course 1 of 4 in the

The Materiality of ESG Factors Specialization

Beginner Level

Approx. 8 hours to complete

English

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 1 of 4 in the

The Materiality of ESG Factors Specialization

Beginner Level

Approx. 8 hours to complete

English

Instructor

Instructor rating

4.64/5 (138 Ratings)

Witold Henisz

Deloitte & Touche Professor of Management Founder, ESG Analytics Lab

Management

11,032 Learners

1 Course

Offered by

University of Pennsylvania

Syllabus - What you will learn from this course

Week

Week 1

2 hours to complete

Module 1 – Introduction to ESG Factors and Concepts

In this module, you will be introduced to Environmental, Social and Governance (ESG) Factors and the many different pathways by which they impact financial value. You will learn about the importance of assessing stakeholder interest or salience in different ESG factors and how this varies across industries. You will also gain insight into the five pathways of materiality through which ESG factors impact revenues, costs, or productivity. Finally, you will examine the conditions under which stakeholders are expected to activate these pathways, highlighting the strategic and financial importance of stakeholder relations. By the end of this module, you will have learned how to discern which ESG pathways matter for you and your stakeholders, how to navigate the materiality map and the importance of stakeholder relations for shareholder value.

2 hours to complete

8 videos (Total 72 min), 1 reading, 1 quiz

Week

Week 2

2 hours to complete

Module 2 – History and Flavors of ESG Investing

In this module, you will get an overview of the history of ESG Investing and review the past and present ways that investors have attempted to incorporate environmental, social, and governance factors into their strategies. You will also learn about the relationships between social pressure, corporate responses, and financial performance. Next, you will look at portfolio optimization and how to utilize ESG factors to maximize returns. Lastly, you will review various case studies that look at different investment strategies and their outcomes in terms of both ESG and financial performance. By the end of this module, you will understand the history of ESG investing, corporate engagement and responsibility, and the different ways ESG factors can be integrated into investment strategies.

2 hours to complete

8 videos (Total 69 min), 1 reading, 1 quiz

Week

Week 3

2 hours to complete

Module 3 – ESG Data

In this module, you will learn about the importance of ESG data and how you can best integrate it into your financial analyses. Next, you will review different providers of data for ESG factors and learn how to assess this data despite the challenges of interpretability and subjectivity. Next, you will survey the tendency towards integrated reporting whereby firms embed ESG data inside their financial reports. Lastly, you will examine ESG data that focuses on the financial impacts on a firm’s stakeholders who may, in turn, create financial benefits or harm for the firm. By the end of this module, you will be better able to utilize ESG data, assess the differences in ESG data provider approaches, and determine how to quantify the environmental, social, and governance factors which impact a firm’s stakeholders.

2 hours to complete

6 videos (Total 54 min), 1 reading, 1 quiz

Week

Week 4

2 hours to complete

Module 4 – ESG Management at the Firm-Level

In this module, you learn about the specific cost and revenue variances associated with ESG issues and how better stakeholder relations can mitigate some of these risks. You will also examine cases from Peru, Ghana, and Brazil, and assess how different ESG risk management strategies affected the performance of these projects. You will also review participatory stakeholder processes, external value at stake (EVAS), and integrated project management systems. Lastly, you will look at transformative ways to implement ESG risk assessments into a broader risk management framework to maximize expected corporate performance. By the end of this module, you will have identified best practices for creating a solid financial and risk management plan that incorporates ESG factors and will understand how to create a culture that is sensitive to ESG.

2 hours to complete

8 videos (Total 62 min), 1 reading, 1 quiz

Reviews

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TOP REVIEWS FROM ESG RISKS AND OPPORTUNITIES

by RRMay 13, 2022

Excellent course to understand the basics, very engaging sessions that are explained in an easy to understand format.

by MAMar 6, 2022

I thought this was one of the best ESG related courses I have taken. The course was recent, relevant and very interesting. Great material and case examples. I think a very balanced view was presented.

by APNov 10, 2022

Great high level course. Deeper dive into the methods, math, and tools would have been nice. Enjoyed the case studies.

by FBApr 23, 2022

Good introduction and choice of topics, but mediocre slides, a few mistakes in both tests and lectures, and absent moderators.

View all reviews

About the The Materiality of ESG Factors Specialization

This specialization will provide learners with the fundamentals and history of ESG investing, and a close examination of the set of investment approaches that are informed by environmental, social and, governance factors. You'll about the five pathways of materiality, and how those interplay with or against ESG performance. You'll review the concepts of positive and negative screening and identify the ESG factors that cause investors to divest from or negatively screen certain assets.

Next, you'll review private environmental governance, the active role that private companies are playing in combating climate change, and the parallels between the public and private sectors. Lastly, you'll evaluate the effectiveness of corporate authenticity and the impacts of politics when building corporate ESG policy, and the importance of creating independent Directors to maintain neutrality and protect stakeholder interests. By the end of this specialization, you will know the best practices for creating a solid risk management plan, analyzed the complex indexing and measurement techniques employed in the ESG space, examined climate disclosures and implementation of climate solutions, and how social activism affects the corporate world in the 21st century.

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

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