November 2015: CFA Institute has added an environmental, social and governance (ESG) guide for investment professionals to its expanding library of Codes, Standards and Guidelines. The Guide was developed in response to growing interest among investment professionals to better incorporate ESG issues in investment analysis, and serves as a comprehensive introduction to ESG considerations.

CFA Society Sydney president, Anthony Serhan, said "Awareness of ESG issues in investing from energy efficiency to employee relations to bribery and corruption has grown substantially in the last decade." Noting that how these issues impact investment management is still not well understood he added that "the Guide provides a clear explanation of ESG risks and opportunities, debunks common myths and helps investors better understand and evaluate social and environmental issues to make better decisions."

Abstract (full paper below): The practice of considering environmental, social, and governance (ESG) issues in investing has evolved significantly from its origins in the exclusionary screening of listed equities on the basis of moral values. A variety of methods are now being used by both value-motivated and values-motivated investors in considering ESG issues across asset classes. For investment professionals, a key idea in the discussion of ESG issues is that systematically considering ESG issues will likely lead to more complete investment analyses and better-informed investment decisions.

Use the links below to download the full paper and to also get more information on the CFA Standards, Guidelines and Position Papers: 

ESG Issues in Investing: A Guide for Investment Professionals (Overview)

ESG Issues in Investing: A Guide for Investment Professionals (Full Paper)

Codes, Standards, and Guidelines

Position Papers and Advocacy Resources

 

For more information on advocacy in Australia, please visit the Advocacy website at: 

CFA Societies Australia Advocacy Website