The CANDRIAM Academy has launched a new course on ESG analysis of companies.

This is the fourth course within The CANDRIAM Academy, which now has a total of 11 modules.

In the absence of industry standards governing the disclosure of ESG information by companies, the quality of analysis varies.

In a one-hour programme, the new ESG analysis module aims to introduce investors to what it considers to be the five key steps required to fully understand a company’s ESG risk profile.

These steps applied across a number of examples:

• Examine a company’s revenues and spending to understand its main activity and its future direction
• Look at how this main activity aligns with sustainability objectives
• Ask whether the company’s operational conduct presents any scope for future controversies
• Ongoing analysis acts as the best warning system
• Cross pollinate ESG data across different functions, including corporate engagement

Launched in 2017, the CANDRIAM Academy aims to raise the awareness, education and knowledge of institutional investors and financial intermediaries on the topic of sustainable and responsible investing via an online platform of materials.

It is free-to-access and has members from over 40 countries. Currently, the platform is home to 8000 members across a range of backgrounds including institutional investors, fund selectors, private bankers, IFAs, retail investors, media as well as students.

Vincent Hamelink, chief investment officer, said: “Our new module provides investors with the essential tools to build a more complete understanding of a company’s ESG risk profile. Its introduction enhances our existing training programme and will further increase the Academy’s role in accelerating the transition to a more sustainable future through encouraging responsible and sustainable investment best practice.”

David Czupryna, head of ESG development, added: “There is a growing expectation for investors to undertake sound ESG analysis to fully understand a company’s risk profile. Whilst financial information has been subject to mandatory disclosure in a number of markets for some time, the scope of information available to investors for ESG analysis can vary significantly from one company to another. We therefore felt it was important to leverage our own experience in responsible investment to guide investors on the key steps that are required in their own ESG analysis within investment decision making”.