While the financial markets’ focus on environmental, social, and governance issues has increasingly grabbed the attention of investors, this course aims to provide you with some basic concepts to help you better define what ESG is, including the rationale behind its inception, and how it has developed.
Through its evolution, we’ll also illustrate how ESG has helped shape not only sovereign and corporate strategies, but the financial products they’ve made available for investors.
For example, did you know that governments, supranational entities, and corporations may use proceeds from bond sales for the sole purposes of creating green projects, such as renewable energy, clean transportation, or wastewater management?
Issuers have also introduced social bonds to help finance social projects, such as affordable basic infrastructure, access to healthcare and education, as well as food security, and socioeconomic advancement.
We’ll explore topics such as these as well as many others.
And through the next series of videos, you’ll learn how to identify and describe the basic principles underpinning the “E”, “S” and “G” in ESG, as well as obtain a brief background of ESG’s origins, evolution, and its impacts on the economy and financial markets.
You should also acquire insights into certain global and domestic goals and frameworks that drive and support issuers’ ESG agendas for economic, financial, and ethical purposes, as well as differentiate between financial products that focus on ESG-related concerns, such as certain exchange-traded funds (ETFs), as well as green—, sustainability-linked—, and social bonds.
You’ll also learn how to examine and construct different investment strategies aligned with investment returns, as well as gain a clearer view of how businesses form their ESG strategies, as well as the risks they face, and how they may be mitigated.
Further along into the course, we’ll delve into how different market sectors have transformed in the wake of increasing ESG-related concerns, and about corporate accountability and ESG scoring, to help you make more informed investment decisions.
We’ll also show you how you can use online trading tools to help you keep your investments, or move your capital, to companies that are aligned with your own ESG-related concerns, including clean air, pure water, consumer safety, fair labor, and many more.
As you progress through this course, you should start acquiring those basic building blocks that will help you make more informed investment decisions about ESG-focused financial products.
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The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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