Issues Associated with ESG Investing
About the event
Traditional investment analysis focuses on risk-return tradeoffs and relies on standard financial metrics such as profitability, earnings potential, revenue growth, market share and market power to drive investment decisions. ESG investing involves an additional consideration of the social impact of the investment. This typically includes consideration of the impact on the Environment (e.g., global warming), Social Responsibility (e.g., workplace diversity and conditions) and Governance (e.g., the structure of the oversight of the company).
For example, if a pension fund is evaluating investment options, it would evaluate the financial condition and potential of various companies/firms. Recently, the pension fund might also consider how effectively the potential investment has addressed the ESG factors. They can analyze that themselves or rely on rating agencies to evaluate the ESG impact of the alternative investments. For example, petroleum companies may receive lower potential investment potential because of their perceived negative effect on the environment. Some have argued that the financials are all that matter and the additional factors (frequently thought to be somewhat subjective) should be given less weight in the investment decision. This has been a particularly hot topic in recent financial industry debates.
Featured speaker
At this seminar, Michele Gambera, a recognized industry expert on the issues, will give an overview of the topic, an analysis of the current state of the inclusion of ESG factors in investment decisions, discuss how traditional investment models should be adjusted to account for the ESG factors and analyze the role of ESG factors going forward.
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Michele Gambera Co-head of Strategic Asset Allocation
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Topics will include:
- How does the inclusion of ESG factors affect investment opportunities? Portfolio management issues?
- What is the fiduciary responsibility of the investment firm? What is the current legal and regulatory status of incorporating ESG factors into satisfying these responsibilities? May they incorporate them? Must they incorporate them?
- Incorporating traditional financial metrics, investors are accustomed to considering risk and expected return to guide asset allocation. How does this investment model need to be augmented to account for the ESG factors?
- How has the inclusion of ESG factors, which can be difficult to quantify, affect investment performance? Particularly, how has accounting for the ESG factors affected performance during periods of market stress?
- How ‘accurate’ are agencies’ gradings of ESG performance? Is there consistency in the ratings?
Event info & registration:
Date: Tuesday, April 16, 2024
Time: 1:00-3:00 p.m.
Location: Schreiber Center, 16 E. Pearson Street, Room 908 (Wintrust Hall)
This event is supported by Loyola's Risk Management and Insurance Center and the Rambler Investment Fund.
About the event
Traditional investment analysis focuses on risk-return tradeoffs and relies on standard financial metrics such as profitability, earnings potential, revenue growth, market share and market power to drive investment decisions. ESG investing involves an additional consideration of the social impact of the investment. This typically includes consideration of the impact on the Environment (e.g., global warming), Social Responsibility (e.g., workplace diversity and conditions) and Governance (e.g., the structure of the oversight of the company).
For example, if a pension fund is evaluating investment options, it would evaluate the financial condition and potential of various companies/firms. Recently, the pension fund might also consider how effectively the potential investment has addressed the ESG factors. They can analyze that themselves or rely on rating agencies to evaluate the ESG impact of the alternative investments. For example, petroleum companies may receive lower potential investment potential because of their perceived negative effect on the environment. Some have argued that the financials are all that matter and the additional factors (frequently thought to be somewhat subjective) should be given less weight in the investment decision. This has been a particularly hot topic in recent financial industry debates.
Featured speaker
At this seminar, Michele Gambera, a recognized industry expert on the issues, will give an overview of the topic, an analysis of the current state of the inclusion of ESG factors in investment decisions, discuss how traditional investment models should be adjusted to account for the ESG factors and analyze the role of ESG factors going forward.
|
Michele Gambera Co-head of Strategic Asset Allocation
|
Topics will include:
- How does the inclusion of ESG factors affect investment opportunities? Portfolio management issues?
- What is the fiduciary responsibility of the investment firm? What is the current legal and regulatory status of incorporating ESG factors into satisfying these responsibilities? May they incorporate them? Must they incorporate them?
- Incorporating traditional financial metrics, investors are accustomed to considering risk and expected return to guide asset allocation. How does this investment model need to be augmented to account for the ESG factors?
- How has the inclusion of ESG factors, which can be difficult to quantify, affect investment performance? Particularly, how has accounting for the ESG factors affected performance during periods of market stress?
- How ‘accurate’ are agencies’ gradings of ESG performance? Is there consistency in the ratings?
Event info & registration:
Date: Tuesday, April 16, 2024
Time: 1:00-3:00 p.m.
Location: Schreiber Center, 16 E. Pearson Street, Room 908 (Wintrust Hall)
This event is supported by Loyola's Risk Management and Insurance Center and the Rambler Investment Fund.