Course description
Sustainable investing—investing that purposefully integrates environmental, social, and governance (ESG) factors into valuation—is not a new concept but has seen a dramatic rise in the past decade. Sustainable investing assets now account for US $17.1 trillion of total US assets under management. In 2020, 53 new ESG-branded funds opened in the USA, bringing the number to 367. The investment decision for any investor pulls forward to today the prospects for the firm, and values that in today's money. Every investment has ESG factors implicit because all investments happen on our one habitable planet, relying on humans to make/buy/do stuff, and the rules of law to govern systems and protect minority investors. ESG scrutiny can shine a light on issues like climate pollution; workplace safety; employee health and wellness; diversity, equity and inclusion; executive compensation; business ethics; and corruption. This trend is relevant not only for money managers, investment advisors and professionals in and around the capital markets, but also for business managers and C-suite leaders, who are increasingly expected to identify, measure, and report material ESG risks. The course work is grounded in Harvard Business School case studies and leverages the real-world experience of guest speakers and the instructor. Students are scored on individual and team work basis, and the capstone includes a four-minute presentation of an investment idea.
