Certifcate in ESG Investing 2025 Curricului Updates

Chapter 1：Introduction to ESG Investing

Chapter 2：The ESG Market

Chapter 3：Environmental Factors

Chapter 4：Social Factors

Chapter 5：Governance Factors

Chapter 6：Engagement and Stewardship

Chapter 7：ESG Analysis,Valuation,and Integration

Chapter 8：Integrated Portfolio Construction and Management

Chapter 9：Investment Mandates,Portfolio Analytics,and Client Reporting

►Chapter 1：Introduction to ESG Investing

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• Emphasis that ESG integration can reduce risk OR enhance returns (not both).

• Revised and re-formatted Spectrum of Capital exhibit.

• Relocation of two end of chapter questions to Knowledge Checks within chapter.

• Updated TCFD sunset and Framework integration with ISSB.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• One deleted LOS. One LOS edit.

►Chapter 2：The ESG Market

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates

• Outflows of Sustainable funds in US for first time in 10 years due to performance and politics.

• 2024 guidance on greenwashing from SDR and FCA.

• Sustainability financial regulations updated.

• UK Stewardship Code.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• One deleted LOS. One LOS edit.

►Chapter 3：Environmental Factors

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• Coverage of Just Transition - Introduces the concept of a 'just transition,'highlighting the importance of policies and investment strategies that align with fair and inclusive climate action.

• Carbon Pricing - Specific focus on carbon pricing methodologies, aiming to teach candidates about its various mechanisms.

• Circular Economy Focus - Additional topics related to waste management, pollution, and natural resource use.

• Inclusion of More Specific Frameworks and Guidelines - Introduces more specific frameworks for climate scenario analysis and investment criteria aligned with a just transition, providing tools for analyzing risks and opportunities.

• Physical and Transition Risks - Breakdown of how companies should analyze physical, and transition risks related to climate change.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• Two new LOS - Increased emphasis on carbon pricing, the just transition, and the interconnectedness of environmental factors with megatrends.

►Chapter 4：Social Factors

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• Foxconn case study (Apple).

• Goldman Sachs gender discrimination case study.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• Three LOS revised.

►Chapter 5：Governance Factors

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• Inclusion of DEI (Diversity, Equity, and Inclusion) - particularly in the context of board structure, diversity, and executive remuneration.

• Focus on Updated Global Practices – including 2024 UK Corporate Governance Code, and material emphasizing modern governance trends such as workforce engagement, board leadership, and the alignment of corporate culture with company values.

• Clarification on Shareholder Engagement – including shareholder engagement and the importance of protecting minority shareholder rights. It provides greater detail on shareholder protection mechanisms like pre-emptive rights and dual-class share structures.

• Introduction of Enhanced Reporting Standards - introduces International Sustainability Standards Board (ISSB) standards and highlights their role in shaping global sustainability reporting.

• More recent governance failures - Wirecard scandal from 2020.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• One deleted LOS, one edited LOS

►Chapter 6：Engagement and Stewardship

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• New focus on explaining both the benefits and limitations of engagement - inclusion of'service providers that support asset owners and managers',reflecting a more comprehensive view of the investment ecosystem.

• Expanded Focus on Stewardship Codes - highlights theirrelevance to service providers and systemic risks. The updated material stresses the importance of aligning stewardship activities with long-term investment goals.

• Case Studies and Practical Examples - more practical case studies, such as VF Corporation’s engagement on water risks and Siam Cement's focus on emissions targets. Collective engagement, such as Climate Action 100+, is emphasized to show how collaborative efforts can shape company strategies.

• Enhanced Guidance on Engagement Styles - new detailed approaches to engagement,along with issue-based vs. company-focused engagement strategies.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• Two edited LOS

►Chapter 7：ESG Analysis,Valuation,and Integration

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• Softened the stance on the purported linkage between ESG factors and expected returns. Highlighted concerns over ESG factor attribution in return studies.

• Increased emphasis on the role of Artificial Intelligence (AI), machine learning, and algorithmsin ESG integration.

• Reflected the finalized standards of the International Sustainability Standards Board (ISSB).

• Clarified the circumstances/contexts for adjusting discount rates when adjusting valuation models and clarified the topic of discount rates in general – particularly around the issue of volatility.

• Introduced the availability of the ASCOR (Assessing Sovereign Climate Related Opportunities and Risks) tool for evaluating climate matters in fixed income securities.

• Highlighted that the EU Green Bond Standard was adopted ensuring that Green Bond investments in the EU are aligned with the EU Green Taxonomy.

• Clarified that investors may reasonably consider integrating ESG techniques in order to seek either increased investment returns or reduced investment risk but not necessarily both.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• Re-ordering of one LOS.

►Chapter 8：Integrated Portfolio Construction and Management

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• “Almanac” fact and figures updates.

• Added Section regarding Attributed Emissions for Sovereign Debt, as well as a formula describing this concept.

• Highlighted the shift that is occurring in sustainable investing from ethical or exclusionary strategies towards stewardship and engagement strategies.

• Added elaboration on various ESG indexes by asset classes.

• Enhanced discussion surrounding labeled bonds, green bonds and “greenium” .

• Added two new ESG screening examples, as well as a new case study on Italy and sovereign debt ESG considerations.

• Introduced new section on derivatives and net-zero portfolios.

Removed Content

• Removal of statistics and content that was outdated, out of favor with practitioners or not suitable for the visually impaired.

LOS related

• Edits to two LOS.

►Chapter 9：Investment Mandates,Portfolio Analytics,and Client Reporting

Key Enhancements

• Improved accessibility and readability – alt-text explanations for visually impaired.

New Content

• No substantial additions.

Removed Content

Note: The Appendix that existed in 2024 (on CFA Institute Disclosure Standards) was moved up into curriculum at section 4 for 2025, and the other components of the prior 2024 Appendix (SFDR Disclosures and ESMA Supervisory Briefing on Sustainability) were deleted.

LOS related

• Edits to three LOS.