Introduction

Most people would agree that we are entering a world of peak oil and a rising energy prices. We see soaring unsustainable debt and the ravage of climate change anticipated by science compounded by the pending effects of warm seas. With sustainability risk and opportunities having become a global imperative and megatrend for business it is critical for asset owners, their advisor and fund managers build a connection to this reality within their investment strategies.  A flat investment in the index will not protect the average investors from shifting seas. Hence it is critical to take a positive angle to investment and sustainability.

Objectives:

Understand the concept of Sustainable investment

Raised awareness of new financial opportunities

The performance of sustainable companies

Build a portfolio with and without sustainable stocks

Estimating the impact of climate risk change on performance

Course Outline

Day 1

Financial Economic for Sustainable Companies

The concept of sustainable investments

The practice of financial/economic analysis

Value creation in sustainable companies

Corporate and shareholder value for sustainable companies

A dynamic perspective of sustainable business

The agency problem

The financial statements of sustainable companies

Day 2

Business Performance for Sustainable Companies

Ratio analysis and business performance

Management’s point of view

Owners’ point of view

Lenders’ point of view

A system of interrelated Ratios

Integration of financial performance analysis

Economic value added of sustainable businesses

Bankruptcy risk for sustainable companies

Day 3

Investment Environment and Asset Allocation Strategies

Investment Opportunities

Required Rate of Return

Sustainable Investment Strategies

Risk and Return

Portfolio Theory

Capital Market Theory

Capital Asset Pricing Model

Day 4

Regression Analysis Equations and System Modelling

Simple Regression Analysis / Maximum likelihood Estimations

Polynomial Curve Fits

Describing Data using Equations

Prediction

The Applications of Regression to Sustainable companies

The Applications of Regression to Non-Sustainable companies

Analysis of Variance (ANOVA)

Day 5

Review and Critique

Key concepts of sustainable investments

Assessing the value of sustainable investments

Short report on sustainable investments strategy