ESG Course: “Environmental, Social, and Governance Training”
Professor Dwight N. Hopkins, Director
Section One: ESG Global Trend
Session One: The Origin and Development of ESG (3 hours)
- Know what is ESG;
- Know the specific history of the origin of ESG;
- Know the reasons and factors why ESG was created; and
- Think about whether there is a history of ESG and reasons for ESG in their country or industry.
- What Is ESG?
- Why Study ESG?
- What is the history of ESG in your country or industry?
- From the “Principles for Responsible Investments,” apply the 6 principles to your company
Session Two: The Current Market Needs for ESG (3 hours)
- Look at the different market needs for ESG;
- Discuss why these market needs are driving ESG; and
- Look at market needs in their own country or industry that might drive ESG.
- These stakeholders are driving the current market needs for ESG:
- Young consumers
- Western politicians
- Institutional investors
- Business schools
- Social media
- Homework: Using “ ESG Stakeholders” Stanford University Bsusiness School, make a list of stakeholders in your company or industry.
Session Three: Market Environment and Policy Support for ESG
- Look at how the market environment supports ESG development;
- Look at how policy supports ESG development; and
- Think about what these two things mean in the students’ own country or industry.
- How the policy environment supports ESG.
- How the market environment supports ESG.
- JPX-Niddei 400 index
- Other international organizations supporting ESG development
- The United Nations Programme Finance Initiative
- The G20s Task Force on Climate-Related Financial Disclosures
- The World Economic Forum’s “Toward Common Metrics and Consisting Reporting of Sustainable Value Creation
- The International Organization of Securities Commissioners “Statement on Disclosure of ESG Matters by Issuers.”
- Homework: Read all of the Handouts to find both the market environment and policy support for ESG development and then students will think about market environment and policy support for ESG in their own country or industry.
Session Four: How government monitors and manages enterprises
- Understand how governments can use ESG to monitor enterprises;
- Understand how governments can use ESG to manage enterprises; and
- Think about what this might look like in their own country or industry.
- The EU as a case study of monitoring ESG and enterprises.
- The US government as a case study of monitoring ESG and enterprises.
- The US Government Accounting Office ways of managing ESG and enterprises.
- Homework: The US GAO July 2020 Report offers 5 points on how governments can better monitor how companies practice ESG. How do these 5 points apply in your country or local situation?
Section Two: How to Write an ESG Report
- Learn the different parts of an ESG report; and
- Practice Writing up an ESG report for their company
- In this section, we look at the different parts of an ESG report and what is the process used to write an ESG report.
- We study annual ESG reports of several global companies.
- Study the 9 parts of an ESG Report template and compare with the 8 steps in writing an ESG Report template.
- Study an ESG Data Collection template
- Each student will write his/her company Mission and Purpose statements.
- Each student will write his/her company Culture and Values statement.
- Use the ESG Report template to write your own company ESG Report.
- Use the Data Collection template to collect ESG data from your company.
Section Three: ESG Ratings Overview
- Know the importance of having ESG ratings;
- Know what ESG ratings are; and
- Begin to apply these ratings to their own company, industry, or country
- Why do we need ESG ratings?
- ESG ratings help companies in financial risk analysis, portfolio construction, product engagement, and product benchmarking.
- ESG ratings help investors with risks and opportunities not shown by conventional methods of financial analysis.
- How do we do create ESG ratings?
- Identify material issues
- Collect data
- Decide risk exposure and management
- Give an ESG score
- Sample Data Collection sheets
- Students will have 16 Excel spread sheets to create an ESG rating for their own companies.
- How do we do create ESG ratings?
Section Four: How to Use ESG to Invest and Start a Business
- A Value Architecture
- How to link values with wealth in ESG investing: and
- Creative ways of getting a company’s story out to the public.
- How to create your own Value Architecture to help allocate capital.
- Students will use an Excel spread sheet to create their own Value Structure for their companies.
- How to link values and wealth in ESG investing
- We will look at Goldman Sachs, Uber, and Tesla
- Using the three points on how to connect values and wealth, apply those three points to your own companies.
- Do the values and wealth exercise on the Excel spread sheet.
- Use ESG rankings to get social attention.
- We look at what are the parts of the publicity package companies use to get their company’s ESG story out to broader publics.
- We look at the many outlets and different forms of media to publicize the company’s ESG story in order to get social attention.
- Use the Excel spread sheet to do the exercise on how to gain social attention.