Your guide to investing for a more sustainable world
Investing in one’s own future has always been a good financial move. But what if you want to ensure that the companies you have a financial interest in are also helping to improve the present and future of all of us—and of the planet? More than ever before, sustainable investors want to be confident that a company’s Environmental (net zero emissions target), Social (response to the Covid-19 pandemic), and Governance (no repeats of Enron and WorldCom) policies and actions are positively impacting the global outlook—and to identify ways that their dollar can incentivize business leaders to do even better. The worldwide rise of an Environmental, Socially Responsible, and Governance (ESG) approach to investing shows you’re not alone, and the $30+ trillion—and growing—committed in this way says it’s already become a transformative global movement. ESG provides a framework for evaluating companies that, unlike unrelated investment strategies, informs and guides sustainable investment.
Even if you’re a novice investor, ESG For Dummies will allow you to hit this new investing landscape running, providing you with measurable ways to factor ESG into company performance, see how these are reflected in your investment return, and show how you can monitor companies to ensure your money is being put to ethical use. You’ll also become familiar with the big names to follow in the ESG world, how they’re already effecting positive change, and how you can help.
- Identify the drivers for each category of ESG
- Define and measure material ESG factors for investing success
- Understand principles for building a diversified sustainable portfolio
- Recognize material ESG factors effect on company performance
ESG investing introduces powerful tools to do real and lasting good: this book shows you how to use them to help make everyone’s future, including your own, much more secure.
Table of contents
- Title Page
Part 1: Getting to Know ESG
- Chapter 1: Entering the World of ESG Investing
- Chapter 2: Back to the Future: Understanding the Evolution and Growth of ESG Investing
- Chapter 3: Give Me an ‘E’! Defining the Environmental Sector in ESG
- Chapter 4: Give Me an ‘S’! Investigating the Social Aspects of ESG
- Chapter 5: Give Me a ‘G’! Decoding the Governance Component of ESG
- Chapter 6: Highlighting Corporate Greenwashing
Part 2: Investing in ESG through Different Instruments
- Chapter 7: Approaches to ESG Investing
- Chapter 8: Analyzing Equity-Based Instruments
- Chapter 9: ESG and Fixed Income Instruments
- Chapter 10: Exploring Derivative and Alternative Instruments
- Chapter 11: Highlighting Geographical Differences in ESG Investing
Part 3: Applying ESG Philosophy
- Chapter 12: Creating Value through ESG for Corporations
- Chapter 13: Devising an ESG Policy
- Chapter 14: Defining and Measuring ESG Performance and Reporting
- Chapter 15: Elaborating the ESG Endgame
Part 4: The Part of Tens
Chapter 16: Ten Frequently Asked Questions for an ESG Approach
- What Is ESG Investing?
- Which Sustainability Goals Should Be Followed?
- What Are the Characteristics of an ESG Company?
- How Is an ESG Company Rated?
- What Investing Principles Should Be Adopted for ESG?
- What Is Stewardship?
- How Is an ESG Approach for Asset Owners Implemented?
- How Are Benchmarks and Performance Measurement Incorporated in ESG?
- What’s the Latest on Disclosures and Reporting?
- What’s the Future of ESG Investing?
Chapter 17: Ten Issues Surrounding ESG Portfolio Construction
- Reasons for Varying ESG Scores between Rating Agencies
- Criteria Used in Creating a Combined ESG Score
- Trends Driving ESG Materiality
- Quantitative Approaches to ESG Analysis
- Qualitative Analysis: Verifying and Supplementing Quantitative Analysis
- ESG Regulations
- Risk and Reward
- Derivative and Alternative Instruments
- Stranded Assets
- Sustainable Investing
Chapter 18: Ten Factors Influencing the Growth of ESG Investing
- Climate Change: The Route to Net Zero
- Environmental and Social Issues Coming to the Fore
- Stewardship as a Driver for Change
- ESG Disclosures
- Regulation and International Standards
- Impact Investing: Actively Do Good versus “Do No Harm”
- Data and Technology
- Consolidation of the ESG Ratings Companies
- Political Impacts: Geopolitics and Public Pressure
- Chapter 16: Ten Frequently Asked Questions for an ESG Approach
- Appendix: Great Resources for ESG Investing
- About the Author
- Advertisement Page
- Connect with Dummies
- End User License Agreement
- Title: ESG Investing For Dummies
- Release date: April 2021
- Publisher(s): For Dummies
- ISBN: 9781119771098
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