EFFAS ESG Valuation, Measurement & Integration Training Programme

Transcription

1 EFFAS ESG Valuation, Measurement & Integration Training Programme (EFFAS Executive Education Programme Mastering ESG Valuation, Measurement and Integration)

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3 Programme Motivation_ Target Groups_ Design of the Programme_ Taking ESG (environmental, social, and governance issues) into account when making investment decisions for many investors is part of their focus and remit. Over the last 10 years or so ESG investing has come off age. Today, there is variety of investing styles and a plethora of data supply in the market. However, the pinnalce of ESGbased investing remains integration of ESG information in valuation models and arithmetical methods of investment calculation. The World Economic Forum considered insufficient education and lack of valuation models as the most important barriers of integrating ESG in mainstream investment decision. The EFFAS ESG training programme aims at overcoming this challenge. The EFFAS ESG Valuation, Measurement & Integration Training Programme delivers exactly the fundamentals of ESG investment analysis and modelling. The programme s objective is to support mainstream and sustainability investment professionals in measuring and integrating ESG in investment processes and providing them with a better understanding of the value drivers of different assets. The EFFAS ESG programme is tailored to the needs of investment professionals in mainstream as well as sustainable fund management, with a long-term investment horizon who wish to integrate ESG data into their capital allocation processes or aim at becoming increasingly engaged with companies on ESG related issues. Also, important capital markets intermediaries like public accountants and sell-side analysts will find this course relevant to their work. In addition, it is ideally suited to asset owners, managers of endowments, and family offices who would like to further develop their understanding of ESG in capital market. This programme thoroughly analyses the challenges of valuing, measuring and integrating ESG data, thus providing participants with tools to enhance sustainability in their daily work. The two-day seminar combines insights of current ESG research and high level, international professional experience. The first day focuses on providing a basic understanding of ESG, whereas the second day focuses on portfolio management and valuation. The programme will be offered in different European countries. The participants will receive comprehensive classroom teaching material and research papers. The programme can also be tailored to the individual needs of companies, e.g. for inhouse programmes. The participants will receive a certificate after successfully passing an assessment.

4 Contributors_ The programme was developed by a group of practitioners and experts from leading European Asset Managers and Research Firms: Alexander Bassen is Chair and Academic Director of the programme. He is professor of capital markets and management at the University of Hamburg (Germany), Faculty of Business, Economics and Social Science. He holds a Master s degree from the University of Tübingen and doctoral degrees (Ph.D. and German Habilitation) from the European Business School (Oestrich-Winkel) and the Technical University of Munich in Germany. He is head of the Corporate Governance Commission and the Investor Relations Commission of the Society of Investment Professionals Germany (DVFA), member of the advisory board of the German Shareholder Association (DSW), member of the EFFAS commission CESG Environmental, Social and Governance Issues and member of the advisory panel for sustainability of DB Advisors/DWS (Deutsche Bank AG) and the advisory committee for the STOXX ESG index family. He has published seven books and more than 120 articles focused on environment, social and governance (ESG) performance and investor relations. Gunnar Friede, Senior Fund Manager and Director, joined DWS Investments (now Deutsche Bank Asset and Wealth Management) 2005 as fund manager for global equities. Since 2006 he has also focused on DWS s and DB Advisors s global ESG strategy and has been essential for its development. Gunnar previously worked in several functions and hubs for Deutsche Bank s Private Clients business ( ). He is a graduate of the University of Applied Sciences HTW Berlin, where he studied International Management / Finance and gained his diploma in Business Administration. Gunnar is a Certified European Financial Analyst (CEFA) and Certified International Investment Analyst (CIIA). He manages several global equity and multi assets funds. Hendrik Garz is working as Managing Director (Germany) and Research Director for Sustainalytics, Germany, one of the leading sustainability research and rating agencies worldwide. Before that he was Executive Director and Head of the SRI team in the Equity Research Department of WestLB AG in Düsseldorf. Hendrik Garz is co-chairing the DVFA s (Association of Investment Professionals in Germany) Committee on Non-Financials and is a member of the EFFAS Commission on ESG. He and his team at WestLB also support the Carbon Disclosure Project (CDP) by writing and producing the country report for Germany (2010, 2011). Besides his role within the EFFAS/DVFA working groups, Hendrik Garz either is or was a member of the PRI working group on ESG integration, the advisory committee for the STOXX ESG index family, the Technical Review Committee (TRC) of the Global Initiative for Sustainability Ratings (GISR), and the Metrics for ESG Super-Factors working group of the Delphi Project led by CSR Europe and EABIS. Hendrik holds a PhD (Dr. rer. pol.) in Finance from University of Erlangen-Nürnberg and an MA in Banking and Finance from the University of Georgia (Athens, USA).

5 Contributors_ René Nicolodi is Head of the Sustainable & Thematic Investment Department in the Asset Management of Zurich Cantonalbank (ZKB), Switzerland. He is responsible for the sustainability research team and is responsible for the bank s portfolio management of the SRI equity and fixed income solutions. He holds a PhD in sustainable pension fund engagement from the University Zurich and has been a Chartered Alternative Investment Analyst (CAIA) since René Nicoldi is a regular lecturer at the University of Applied Sciences for Business Administration Zurich (HWZ), the University of Zurich and the Swiss Training Centre for Investment Professionals (AZEK). He also represents the Swiss Financial Analyst Association (SFAA) in the EEFAS ESG Commission on ESG. Felix Schnella is a graduated Economist and has been Senior Portfolio Manager at Ökoworld Lux S.A. since April 2010, managing different classes of sustainability funds. Prior to that, Felix worked for Allianz Global Investors as a portfolio manager for over nine years. In addition to sustainable investments, he focused there on actively managed funds, including hedge funds and high alpha mandates. Felix Schnella is also the Co-Chair of the DVFA commission Responsible Investing and member of the EFFAS commission CESG Environmental, Social and Governance Issues. Additionally, Felix Schnella is a member of the advisory committee for the STOXX ESG index family. Since 2005 Felix has been a CFA charterholder.

6 Syllabus_ Module 1: Wake me up! Is the overall applicability of ESG factors feasible at all? The first module will show participants why the answer to that question is a clear yes. Different studies that link ESG performance with financial performance will be presented and discussed, providing participants with an understanding of how capital markets perceive ESG factors. Module 2: Fundamentals The second module describes the motivation, potential drivers and the regulatory frameworks of ESG. Investment professionals have different motives taking ESG into account. They range is from the objective to enhance sustainability or to have an impact on society to purely financial performance. The drivers of the financial market to integrate ESG information are e.g. regulatory frameworks, investor behaviour and data availability. Module 3: Approaches and strategies The objective of this module is to define ESG terms and concepts in to have a common terminology and to understand the different ESG strategies that are often used to classify ESG investors. As it is essential for further discussions to have a common understanding of the different sustainability terms, their relevance, but also their inflationary use an overview of the history of sustainability and ESG is provided. Against this backdrop differences of ESG terms like responsible investment, socially responsible investment, impact investment, engagement and non-financials information are discussed. Module 4: Investment process chain This module focuses on how to integrate ESG into investment processes. This module delivers the fundamental framework for integrating and valuation ESG data. Different socially responsible investment (SRI) strategies are described. The different steps in the investment process chain like investment policy making, asset allocation, selection, control, and reporting will be analysed from an SRI perspective.

7 Syllabus_ Module 5: ESG integration and valuation Showcase the integration of ESG in the very investment valuation process. Theoretical foundation: An essential part of the daily business of investment professionals is the integration of financial and non-financial information in their investment valuation process. Initially we will analyse different valuation models and identify the possibilities to integrate ESG information in equity and bond valuation. We will use several real world examples to demonstrate the opportunities and threats of this approach. The next step is to analyse disclosure and data source which are essential as they determine the scope and quality of input for the valuation model. Different voluntary and mandatory reporting regimes are described (EU regulation, GRI, EFFAS KPIs) In addition, the Integrated Reporting, which combines integration of financial and extra financial reporting, as recommended by the International Integrated Reporting Council (IIRC) will be presented. Case study on company valuation: Based on this the participants will work on a real valuation case. They will have the opportunity to use financial and ESG information to evaluate a company s equity value. The session will be wrap up with a critical assessment on fit-for-purposes of valuation models. Module 6: Portfolio management In this module a description of approaches of ESG from the perspective of portfolio management follows. Different approaches, such as active or passive portfolio management, indices, ETFs and sustainable benchmark will be discussed. Best in class approach of leading ESG fund managers will be presented. The module closes with a comprehensive overview of using the ESG approach in different asset classes Module 7: Summary and conclusions In the last module the different results will be summarized and remaining questions will be answered. The major take-away in terms of modelling and framing, behavioural components and the importance of judgment in ESG investment decision-making will be discussed.

8 Contact Jesús López Zaballos General Manager of the Training School of FEF-IEAF, Deputy Chairman of EFFAS Avda. Brasil, 17 3º A y B Phone: lopez.zaballos@fef.es EFFAS THE EUROPEAN FEDERATION OF FINANCIAL ANALYSTS SOCIETIES Frankfurt am Main Operational Office: DVFA GmbH Claudia Stinnes Einsteinstrasse 5 EFFAS e. V. D Dreieich Mainzer Landstrasse 47a DE Phone: Frankfurt +49 (0)6103 am Main Fax: (0) Telephone: Mail: konferenzen@dvfa.de Telefax: Web: info@effas.com Internet: