Sustainable Investing

This book reviews the latest methods of sustainable investing and financial profit making and describes how ESG (Environmental, Social, Governance) analysis can identify future business opportunities and manage risk to achieve abnormal returns. Megatrends such as climate change, sustainable development and digitalisation increase uncertainty and information asymmetry and have an impact on the future returns on investments. From a profit perspective, it is largely about how ESG factors affect the long-term value added by companies and the valuation of companies in the financial markets. Although sustainability provides an opportunity for abnormal returns, this phenomenon must be considered in a critical light. The book describes the risks and limitations associated with the accountability and availability of ESG data and tools.

This book provides both academic findings and practical models for assessing the sustainability of investees and introduces practical tools andmethods to make ESG analysis practice. It focuses on the ESG analysis of equity investments and fund investments in institutional investment organizations and provides a handbook for all investment analysts who are involved with investment decisions. Readers will benefit from understanding the methods, opportunities and challenges that professionals use in their ESG analysis with cases, interviews and practical tools for both institutional and private investors.

Part I. Basics of Sustainable Investing. - Chapter 1.

Motivation for Sustainable Investing What Is the Purpose? . - chapter 2. Methods of Sustainable Investing. - Part II. Engaging with Investees. - Chapter 3. Active Ownership. - Part III. Sustainability in Investment Analysis. - Chapter 4.

Sustainability as Part of Qualitative Analysis. - Chapter 5. ESG Analysis Tools for Assessing Listed Shares. - Chapter 6. Sustainability of Various Investment Products. - Part IV. The Link between

Sustainability and Returns. - Chapter 7
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The Nordic Perspective on Integrating ESG. - Chapter 8. Is Sustainable Investing Profitable? . - Chapter 9. What Is the Profitability of Sustainability Based on? . - Part V. Sustainability Trends and the Future of ESG. - Chapter 10.

Changes in International Politics and Legislation. - Chapter 11. Sustainability Trends and International Frameworks. - Chapter 12. Global Investment Trends and Impacts on Sustainable Investing.