ESG-focused Financial Products

Go to Course: https://www.coursera.org/learn/esg-focused-financial-products

Introduction

## Course Review: ESG-focused Financial Products on Coursera In an era where environmental, social, and governance (ESG) factors have become pivotal in shaping investment strategies, the course "ESG-focused Financial Products" on Coursera emerges as an indispensable resource for finance professionals, investors, and anyone keen on understanding the dynamics of ESG investing. This well-structured course is an enlightening journey through the evolving landscape of green assets and their market impact. ### Overview The course is built around the growing demand for ESG-focused financial products, often referred to as 'green assets.' With an increase in corporate sustainability goals and investment in social welfare, knowing how to navigate these products is crucial. From green bonds to ESG-themed Exchange-Traded Funds (ETFs), participants will gain insights into the different types of fixed income securities available that align with ESG principles. ### Syllabus Breakdown #### 1. **An Introduction to Green Assets** The course kicks off with a comprehensive overview of green assets, including green and social bonds. It lays the groundwork for understanding who issues these instruments and the associated risks. This module also introduces the International Capital Market Association’s (ICMA) principles, making it highly relevant for investors looking to delve into responsible investing. #### 2. **Fixed Income Product Perspectives - Truvalue Labs (Parts 1-3)** Presented by James Cardamone from Truvalue Labs, the first webinar focuses on the global landscape of Green, Social, Sustainable, and Sustainability-linked bonds. Participants will learn about the intensified supply and demand dynamics of these instruments, alongside their comparative benefits over traditional bonds. This session is especially valuable for those looking to make informed investment decisions in the ESG space. #### 3. **Fixed Income Product Perspectives - Truvalue Labs (Parts 4-5)** The course progresses with a deeper analysis of green bond performance and the notable ‘greenium’ effect, where green bonds may trade at a premium. Understanding how to evaluate issuers and their performance in secondary markets is crucial for any serious investor, making this an important component of the syllabus. #### 4. **Fixed Income Product Perspectives - Truvalue Labs (Parts 6-7)** In these final segments of the webinar series, Cardamone addresses pressing questions regarding ESG scoring and the concept of "green washing." This is an especially critical topic, as it helps participants distinguish between genuine ESG initiatives and those that may merely be performative. #### 5. **ESG-themed Exchange-traded Funds** Another key focus of the course is the exploration of ESG-themed ETFs, guided by insights from Ron DeLegge. Participants will gain an understanding of the varied standards across these products and learn how to evaluate different ETFs critically. The comparative analysis of popular ESG-focused ETFs provides practical insights for future investment decisions. #### 6. **Reading Reinforcements** To consolidate your understanding, the course offers a selection of readings that discuss the principles behind various fixed-income ESG products. These readings delve into government policies underpinning the rise of green assets and highlight challenges within the market, ensuring a well-rounded educational experience. ### Recommendations "ESG-focused Financial Products" is perfect for finance professionals looking to integrate sustainable finance into their portfolios, investment analysts who wish to understand the complexities of ESG-themed products, and anyone passionate about the future of socially responsible investing. Given the increasing relevance of ESG factors in investing, this course equips learners with the necessary tools to navigate this dynamic landscape effectively. ### Conclusion Overall, the course is highly recommended for its depth of content, expert-led discussions, and emphasis on practical investment applications. It not only educates participants on the fundamentals of ESG investing but also prepares them for real-world investment challenges and opportunities in the rapidly evolving domain of green finance. If you're looking to advance your understanding and application of ESG-focused financial products, this course is an ideal starting point.

Syllabus

An Introduction to Green Assets

This module centers on several types of green assets, including green bonds and social bonds, and the International Capital Market Association’s (ICMA) role in providing the driving principles behind their issuance. You should be able to explain who is selling these instruments, as well as some of the fixed-income related risks inherent in these types of products. Other green assets such as ESG-themed ETFs, and certain commodities are also introduced.

This webinar, “The Global State of GSSS Bonds”, presented by James Cardamone, associate director of ESG product at FactSet-owned Truvalue Labs, takes a deeper look at some of the financial instruments associated with ESG investing – many of which have recently witnessed an increasing groundswell of supply and demand. Through this presentation, you should acquire a better picture of ESG-related fixed income products, such as green, social, sustainable, and sustainability-linked bonds, how to analyze them, and, ultimately, make better informed investment decisions. Among other topics, Cardamone explores the allure behind these fixed-income products, who is selling and buying them, how they differ from conventional bonds, and what purposes they serve within the ESG investing sphere.

“The Global State of GSSS Bonds” webinar continues with James Cardamone, associate director of ESG product at FactSet-owned Truvalue Labs, demonstrating green bond performance, the ‘greenium’ effect, and delves further into how to evaluate green bond issuers, as well as analyze their performance in the secondary market.

“The Global State of GSSS Bonds” webinar continues with James Cardamone, associate director of ESG product at FactSet-owned Truvalue Labs, addressing participants' questions about ESG scoring, and green washing – topics that will also be echoed in later lessons.

The next series of videos introduces you to ESG-themed ETFs, another asset class in the sustainability-related space, including a broad overview by Ron DeLegge, founder of ETFguide and host of the series ETF Battles. In that introduction, DeLegge offers insights into how standards vary across these products, as well as presents four of the top US-listed ETFs by assets, which may be used to begin your research. DeLegge is then joined by two analysts, who compare and contrast three index-based, ESG-focused ETFs from iShares and Vanguard – with their evaluations formed on the bases of cost, exposure strategy, performance, and more – demonstrating how you can follow their analytical strategies for your own investing decisions.

Readings in this module home in on the principles underlying different types of ESG-related fixed income products, examines certain specific bonds, as well as delves into certain government policy underpinning the rise of green asset supply, product diversity, and fund flows. We’ve also provided some commentary and research that addresses certain critical challenges of green bonds that you may factor into your analyses.