Continuous education is an important part of any professional investor’s career, particularly as times change so rapidly. Investing is changing fast, as seen with the rapid adoption of the UN’s Sustainable Development Goals (SDGs). This has put some financial professionals at a disadvantage in being able to explain the concept to clients and prospects. This module bridges that gap.
Those participating in this course are invited to digest the information and then take the test at the end. To enhance the learning experience, the module is delivered using clear language, charts, videos and case studies. Each of the six chapters takes up to 15 minutes to read.
A score of at least 10 out of 12 correct answers (80%) for the test will count up to one and a half hours towards your professional CPD requirements. The educational module is already accredited by CII, CISI, FPA and lBF with more to follow.
CFA Institute allows its members the ability to self-determine and self-report professional learning credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online PL tracker.
What are the SDGs?
The UN’s Sustainable Development Goals are taking sustainable investing to the next level, focusing on clearly defined objectives to transform our world, while also offering returns for investors.
How the 17 SDGs came into being as the successor to MDGs
The methods for tracking their progress, and their limitations
The funding needed to achieve them and their public appeal
Why are SDGs relevant for investors?
Why then should investors place their clients’ cash into an arena that essentially targets social or development projects, rather than more established means of generating returns?
Why the SDGs present a great business opportunity for companies
The most (and least) favored SDGs for development capital
The link with impact investing and the returns that can create
Assessing companies' contributions to the SDGs
We have seen that the SDGs present a great business opportunity, but it is important to know which companies are able to contribute to these goals before deciding whether to invest in them.
The contributions that companies can make differ widely per sector
The net result is vital, combining negative and positive contributions
Three examples of the different ways investors measure these goals
SDG investment solutions
Once an investor has decided to take the plunge and support the SDGs, a choice of investment vehicle needs to be made, using equities, bonds, or other forms of funding.
Investing in the SDGs using equity and bond strategies
Traditional impact investments such as renewable energy
Engagement programs and other alternative solutions
How to measure the impact of the SDGs
We now know how to assess whether companies positively or negatively impact the SDGs, but measuring the impact at the sharp end of these business operations – the end users – can be much harder. Impact measurement is important, since it allows investors to know that their money is actually making a difference.
How the UN tracks progress made on the SDGs, with mixed results
How impact can be understood from a ‘theory of change’ perspective
How investors have different ways of measuring impact
Putting ideology into practice lies at the heart of sustainable and impact investing. Different investors have differing motivations for what they hope to achieve with their money.
How impact investing helps previously underserved communities
Themes such as improving education can also generate returns
Raising food standards is an example of the power of engagement
To summarize, let us recap what we know about the Sustainable Development Goals and investing in them. This final chapter highlights the main points from the previous six.
Ready for the test?
Now that you are clear on all these points, you are ready to take the test.Your feedback