ESG Investing: Industry Impacts & Transformations

Go to Course: https://www.coursera.org/learn/esg-investing-industry-impacts-transformations

Introduction

### Course Review: ESG Investing - Industry Impacts & Transformations on Coursera In an era where environmental, social, and governance (ESG) factors are increasingly shaping investment landscapes, Coursera’s course titled **"ESG Investing: Industry Impacts & Transformations"** offers an insightful exploration into how ESG considerations impact various financial markets. This course is tailored for students who possess basic knowledge of traditional financial products and are keen to deepen their understanding of how industries are evolving in response to these influential factors. #### Course Overview The primary focus of this course is to investigate the transformation of various market sectors under the influence of ESG criteria. The curriculum addresses critical questions about the recent upheavals in industries historically considered stable. For instance, students will explore why iconic companies like Borden and Dean Foods found themselves in bankruptcy, while simultaneously examining how energy titans such as BP and Exxon Mobil are navigating the energy transition. #### Syllabus Breakdown 1. **ESG's Influence on Business Sectors**: This initial module provides a comprehensive analysis of how ESG-related issues are reshaping various sectors, including healthcare, transportation, and energy. Students will gain the tools to critically assess ESG impacts on fundamental financial analyses, enabling them to identify potential risks and opportunities. 2. **ESG Investing: Credit Perspectives (Parts 1-3)**: Featuring insights from Venk Reddy of Zeo Capital Advisors, this series of webinars delves into ESG risk factors for high-yield companies. Reddy offers a practical comparison between ESG analysis and traditional credit analysis. Students will learn about intentionality in due diligence, investment styles, and the prevalent issue of greenwashing, arming them with knowledge to make informed investment decisions. 3. **ESG Investing: Credit Perspectives (Parts 4-6)**: This segment continues to explore the ESG transition in the high-yield energy sector, examining the dynamics of risk versus reward in ESG-related investments. It also provides practical guidance on building and managing ESG-focused fixed-income portfolios. 4. **Energy Transition: Industry Insights (Parts 1-3)**: This module shifts focus to transportation and the ramifications of ESG factors on supply and demand for financial assets. Nitesh Shah from WisdomTree Europe leads discussions on the burgeoning electric vehicle market and its implications for various commodities. 5. **Energy Transition: Industry Insights (Parts 4-9)**: Shah continues his exploration of battery technologies, revealing the investment opportunities presented by advancements in this field and detailing the interaction of renewable energy dynamics with commodity pricing. 6. **Reading Reinforcements**: A supplementary module that encourages students to engage more deeply with the materials covered, ensuring they can effectively correlate industry standards with the UN's Sustainable Development Goals. #### Recommendations **Who Should Take This Course?** - Individuals who have a foundational understanding of finance and are interested in how ESG considerations are transforming markets. - Financial analysts, investors, or students in finance-related fields looking to enhance their portfolio management strategies. - Professionals seeking to align their investment practices with sustainable and responsible investing principles. **Course Highlights:** - **Expert Insights**: The involvement of industry leaders like Venk Reddy and Nitesh Shah enhances the learning experience with real-world applications. - **Comprehensive Coverage**: The curriculum adequately combines theoretical concepts with practical insights, making it both engaging and informative. - **Flexible Learning**: As with many Coursera courses, students can learn at their convenience, making it an excellent option for busy professionals. In conclusion, if you're looking to stay ahead in the evolving landscape of investing and want to grasp how ESG factors drive industry transformations, **"ESG Investing: Industry Impacts & Transformations"** is a highly recommended course. It not only equips you with the necessary analytical tools but also forms the foundation for responsible investment practices in today's world. Engage with the course and become part of the growing movement towards sustainable investing!

Syllabus

ESG's Influence on Business Sectors

ESG-related issues have impacted different business sectors in more or less dramatic ways, and as governments, companies, and their stakeholders increase their engagement with these concerns, traditional industries seem to be staging significant transformations. In this module, we explore how ESG has influenced material business sector shifts in the areas of forest products, energy, transportation, dairy, and healthcare, among others, to enable you to home in on asking critical questions when performing fundamental analysis.

While the following webinar, “How to Make an Impact Through Credit Investing”, focuses on how heightened attention on ESG risk factors have impacted the businesses of certain high yield companies, Venk Reddy, founder and chief investment officer of Zeo Capital Advisors, also highlights several other related topics – including investment styles, such as ESG integrators and passive screeners, as well as discusses certain areas of concern, including green washing, and regulatory disclosures, which will be echoed in later lessons. Also, through this presentation, you’ll find out, among other objectives, how ESG analysis may be compared to credit analysis, why intentionality is a critical component in performing due diligence and company selection in a sustainable portfolio, as well as ways in which investors may be able to differentiate authentic management from marketing schemes.

The “How to Make an Impact Through Credit Investing” webinar continues with Venk Reddy, founder and CIO at Zeo Capital Advisors, addressing how high yield energy companies are generally managing the transition towards alternative energy, as well as the risk/reward profile of ESG-related vs non-ESG business sectors, and outlines a process for conducting fundamental analysis on an ESG-related, fixed income portfolio.

The “How to Make an Impact Through Credit Investing” webinar continues with Venk Reddy, founder and CIO at Zeo Capital Advisors, highlighting the importance of company character, including intentionality, as well as offering ways in which to approach ESG investing if self-managing, or outsourcing the management of, a fixed income portfolio.

In this module, we’ll take a deeper look at how the transportation sector is transforming in the wake of ESG-related concerns – and how, as a result, the supply and demand dynamics for certain financial assets, such as commodities, may change. The following webinar, “Batteries: Harnessing the Power of the Energy Transition”, presented by Nitesh Shah, research director at WisdomTree Europe, examines, among other topics, a proposed trajectory for electric vehicle sales, and how advancements in battery technology are opening new markets – from electric vehicles to energy storage systems. Shah also details how he expects electric vehicles to drive lithium-ion battery growth and highlights how certain commodities may benefit from their increased production. He further outlines how certain equities may also benefit across all parts of the value chain.

The “Batteries: Harnessing the Power of the Energy Transition” webinar continues with Nitesh Shah, research director at WisdomTree Europe, providing an outlook on the costs of batteries, as well as a forward-looking comparison of purchasing electric vs internal combustion engine vehicles. Shah also walks through the supply/demand dynamics of renewable energies, as well as the commodities that are used to produce batteries.

The “Batteries: Harnessing the Power of the Energy Transition” webinar continues with Nitesh Shah, research director at WisdomTree Europe, breaking down the battery value chain and identifying related investment opportunities in certain commodities and equities.

This Reading Reinforcement module provides you with more detailed information about specific business sector and individual company shifts in the wake of different sustainability-driven issues. After completion, you should be able to describe how certain of SASB’s industry standards align with the UN’s Sustainable Development Goals, as well as related changes in market sectors and companies’ strategies.