History and Emergence of Sustainable Investing

• ‘Conscious’ capitalism – UK 1800s religious groups, Quakers and Methodists and socially responsible investing (SRI) guidelines for their followers
• Cost Benefit Analysis 1970s
• The Sustainable Corporation 1994
• UN study ‘Who Cares Wins’ 2004
• 2005 launch of the UN Principles for Responsible Investment (PRI) and SRI as the integration of environmental, social and governance (ESG) factors into investment processes and decision-making
• ‘TBL’ – Triple Bottom Line 2006
• Sustainable investing and impact investing

Sustainable Investing - The Value Proposition

• History – Cost Benefit Analysis
• Financial economics and sustainability
  
  • – value
    
    • definition
    • measurement
    • absolute vs. relative value
  • value creation and how to measure it in a for profit environment
    
    • modelling value creation and market signals analysis
    • value driver analysis
    • value creation in a sustainable investing environment
• Linking ESG factors for sustainable investment to long-term value creation via
  
  • returns on capital
  • risk management
  • growth
• The value proposition – ex ante vs. ex post perspectives

Measuring Sustainable Investment Performance

• Triple Bottom Line revisited
• The United Nations instituted Principles for Responsible Investment
• Environmental, Social and (corporate) Governance (ESG) Factors
  
  • introduction and background
  • what are ESG factors
  • why ESG factors are important, including but not restricted to:
    
    • changing societal values
    • performance
    • fundraising
    • impact on the investment process
  • ESG metrics - sustainability disclosures, reports and ratings

The Sustainable Investing Landscape

• Current update and prospects for the future
• Why they do it
  
  • impact first investors
  • investment first investors
  • catalytic investors
  • other
• How they do it
  
  • direct vs. indirect
  • full service vs. funding
  • passive vs. active
  • investment vehicles and structuring issues
    
    • closed vs. open ended structures, influence of investment time horizon and exit considerations
  • for profit investment structural considerations
  • social impact fund investment structural considerations
  • investor considerations
  • innovations in deal structures

Financial Instruments and Sustainable Investing

• Due diligence
  
  • objectives
  • overview
  • implications
• Compliance
  
  • corporate transparency
  • ISO Standards
  • global
  • International Organisation for Standardisation (ISO)
  • specific legislation