Governance Perspective on ESG Investing

• To understand and explain what governance is and why it matters
• To understand the development of corporate governance and key motivators for step-change
• To assess key characteristics of effective corporate governance
• To assess the main models and best governance issues
• To identify material impacts of governance issues on financing decision-making
• To apply material governance factors to financial modelling; “ESG” ratio analysis; ESG risk assessment; quality of governance risk management
• To understand the key characteristics of effective stewardship

Governance overview

• Definition of governance
• Alignment and the agency problem
• Accountability
• Incentives
• Benefits of good governance

• Reputation
• Broader sustainability efforts
• Positive behaviour
• Access to capital
• Control environment
• Performance

• Main factors of corporate governance perspective

• Board structure
• Executive compensation
• Minority shareholder rights
• Reporting
• Capital allocation
• Business governance ethics – bribery and corruption
• Business governance ethics – anti-competition

• Global ESG investing trends in corporate governance

Governance risks and the financial services sector 

• Financial concerns in governance-related decision-making

• Types of board structure
• Committees
• Independence
• Diversity
• Effectiveness
• Culture
• Fair and equitable treatment of shareholders
• Reporting aspects
• Purpose of capital allocation
• Regional aspects of business ethics

• Regulation of corporate governance
• Material impact of governance issues
• Return of Governance indices
• Incorporating governance into financial analysis, within traditional and ESG investments

Stewardship

• What is stewardship
• Definitions
• Objective and purpose
• Stewardship Codes
• Voting
• Importance of active ownership and voting
• Key themes of resolutions
• Shareholder resolutions
• Corporate Engagement
• Engagement approaches
• Engagement in practice

The ESG investing governance course trainer is a Senior ESG Expert and Lead for Environmental Research at Candriam. She has worked at various asset managers in France and abroad, including Amundi, Generali, Axa and Standard Life Aberdeen, implementing responsible investment, developing impact investing frameworks, leading corporate engagements and supporting financial institutions in their integration of climate risks and opportunities. In her previous role at DNCA, she contributed to launching an impact fund governance and a thematic climate fund. She is a lecturer at renowned universities, including HEC, and a regular speaker at ESG conferences.

Corporate governance has become more complex as the scale and complexity of companies have grown and as ownership has become more dispersed. This ESG investing governance training course identifies and describes the concept of governance, its development, existing best practices, and how finance professionals can analyse governance issues to mitigate risks and deliver value.