How can you develop expertise in ESG investing?

To build expertise in ESG investing, start by learning the basics of ESG criteria. Read articles, watch tutorials, and follow industry leaders. Practice by analyzing companies’ ESG reports and investments. Join online forums or groups focused on sustainable investing to discuss and gain insights. Consider formal education like online courses or workshops. Gradually, apply your knowledge by investing in ESG-focused funds or stocks, and monitor their performance. Experience and continuous learning are key to understanding ESG investing.

One starts by learning what ESG investing is by realizing that each company creates an impact in environmental, social, and governance areas, and so does investing in such a company. The choice of the ESG investing strategy used to result in the investment to be made can vary according to the investor's goals, motivations, processes, focus, and experience. Negative and positive screening, Thematic investment, ESG integration, Impact investment, and stakeholder engagement are some of the possibilities

Antes de tudo você precisa investir tempo para ampliar o seu conhecimento em ESG, isso inclui entender os critérios ambientais, sociais e de governança que são considerados ao avaliar empresas e projetos. Desenvolva habilidades de pesquisa e análise para avaliar o desempenho ESG de empresas e setores. Isso envolve aprender a usar métricas e indicadores ESG. Reconheça que os investimentos ESG são parte de uma abordagem mais ampla para investir de forma sustentável e responsável. Procure integrar considerações ESG em todas as áreas do seu portfólio de investimentos, em vez de tratá-las como uma estratégia separada. E o mais importante, estudo constante sobre as novidades são a chave para um bom desempenho.

ESG investing is a fast-growing domain and there's an urgent need for competent and skilled professionals in the field. To be an expert in the ESG investing, it's important to begin with the basics by familiarizing one with the global ESG issues and their solutions. There are several courses available at a very low/free cost to get the basics cleared. Next step would be to gain practical experience by working in the field and then, one could go for a specialized/advanced course in the domain.

Defining the nature of the investment activity and what its ESG objectives are, is top priority. In parallel, having a sense of what frameworks exist that govern ESG investing is crucial, prior to any such investment activity, as it could be a matter of legality (and reputation) if you are investing or managing a fund. For instance, the SFDR (Sustainable Financing Disclosure Regulation), a framework for transparency in investments, can be employed as a rubric for ESG investing. Article 8 of the Regulation, for instance, provides guidelines around sustainable investing for funds that have green characteristics ("light green"), while Article 9 governs funds focused on sustainable investment as their primary objective ("dark green").

ESG scores are calculated with the analysis for a wide range of companies. Bloomberg, MSCI and other such firms provide quality research on the topic. These ratings are given looking at various elements of the organization from fair labor, gender equality, DEI, Board of directors etc.

Developing an expertise in ESG investing can take on two main forms. The first is developing an expertise in managing the funds of other investors who are investing in ESG-driven activities / products. The second is to invest (your own funds) into ESG-driven activities / products. The strategies are slightly different. In the former (fund management), your role might be to recommend the best possible returns for ESG-type assets. These could spread across a portfolio, e.g. real estate assets in multiple geographies, to de-risk the fund. Markets trends are therefore important. In the latter (investment), the focus may not just be on financial returns alone, but also in ESG causes that you believe in - and would invest your own money in.

Para ter um bom desempenho na implementação das políticas ESG, é importante ter um conhecimento profundo sobre o mercado em que atua, agindo em consonância com stakeholders, fornecedores e consumidores. No agronegócio brasileiro a principal tendência do mercado, independente do porte da empresa, é o monitoramento da cadeia de produção, que auxilia no compliance socioambiental das mesmas, garantindo o fornecimento responsivo de diversos produtos ao redor do mundo. E aliado com boas políticas públicas o agronegócio tem se colocado como principal representante do ESG no Brasil, atraindo investimento massivo em tecnologia como também no mercado de capitais.

Networking is the best way to remain relevant in each subject. Professional groups with similar interests most of the time result in increased awareness of changes in the market, raising opportunities and threats. Webinars and conferences are also a great way to gain new insights and gain perspective through efficient Q&A sessions.

Te recomiendo algunos grupos y redes de colaboración en materia de ESG Redes -ESG PN -ESG Pro -Empresability Grupos de linkedin - Upgrading ESG - Sustainability ESG CSR Climate Carbon Renewable Eco Green Net Zero Circular Regenerative Economy - UN SDG Carbon Climate Renewable Sustainability ESG CSR Sustainable Green Eco Circular Regenerative

Stay up-to-date with the latest developments, trends, and research in the field of ESG investing. Follow industry publications, attend conferences, and participate in webinars to expand your knowledge and stay informed about best practices and emerging issues.

Take courses, attend workshops, or pursue certifications related to ESG investing. Look for educational programs offered by universities, professional organizations, or online platforms that cover topics such as sustainable investing, impact investing, and ESG integration.

While applying your knowledge is important, it may not always be called for. It may be more relevant to test your knowledge on multiple scenarios and, in the context of this discussion, on different types of funds and their intended and committed returns. Applying your impact investing knowledge in a fund that requires specific IRR figures may, for instance, be less useful than understanding performative sustainability aspects of a potential asset or technology that can save energy, as the latter directly translates into dollar value savings. In both scenarios, you are testing your ESG investment knowledge, but possibly with very different outcomes - and very different levels of success in terms of earning an investor's commitment.

ESG investments require even more attention. With advances on the topic, the main point is to pay attention to actions that are effective in favor of environmental, social and governance aspects. Furthermore, having the ability to identify cases that fall into the aspect of greenwashing, that is, that only exist on paper and not in their effectiveness. This is the big risk today, ESG without commitment and responsibility.

ESG investing is a dynamic and evolving field, so commit to continuous learning and adaptation. Stay curious, seek out new opportunities for professional development, and be open to exploring innovative approaches and strategies in ESG investing.

ESG investing is a dynamic and evolving field, requiring continuous learning and adaptation to stay relevant. Commit to ongoing professional development by staying curious, exploring new ideas, and seeking feedback from peers and industry experts. Engage in peer-to-peer learning forums, attend workshops, and participate in online forums to exchange insights, share experiences, and stay informed about emerging trends and innovations in ESG investing.

The beauty - and sometimes the irony - of ESG investing is that it is as much about returns, as it is about improving lives, potentially restoring the planet and its inhabitants, as well as preserving cultures. It is philanthropy with a measuring rule - with potentially healthy returns of investment. Whether one looks at it from a fund manager's or an investor's lens, one shouldn't lose sight of the fundamental purpose of ESG investing - and that is to enhance the environmental, social and governance aspects of protecting our planet and its inhabitants, amidst a world that is focused on growth.

ESG, though bunched together generally, are also very contextual and sector specific. Even within the same sector, geographic location - both from a cultural & environmental diversity perspective, political/regulatory environment, generally-accepted-practices all have an impact. One needs to be tuned into and sensitive to these dimensions in making coherent assumptions & assessments. It’s like one learns to drive but will have to adapt to driving on blacktop roads, to dirt tracks, to desert sands & hilly terrains as well.

To develop expertise in ESG investing, immerse yourself in ongoing education through courses and certifications focused on ESG principles. Engage with industry reports, sustainability-focused webinars, and conferences to stay abreast of trends and regulatory changes. Actively participate in investment communities and forums. Practice analyzing ESG metrics and reports of companies, and consider mentorship or collaboration with experienced ESG investors. Hands-on experience combined with continuous learning will deepen your understanding and proficiency in ESG investing strategies.