UTS Finance Masterclass

Responsible Investing and ESG - Part 1: E

Bee

Investment context:

Fundamental company analysis has traditionally been focused on returns to capital employed, its momentum and likely duration. Fundamental security analysis has been historically focused on the relationship between a stock’s underlying financial characteristics and its relationship to the broader investment universe from a valuation perspective. Both of these processes have been determined within the context of overwhelmingly financial measures. In contrast, capital allocation decisions are becoming increasingly influenced by broader qualitative parameters such as environmental (E) and social (S) impacts. Although it is worth noting that greater quantitative rigour is being applied to environmental and social outcomes.

In addition, the success and sustainability of a broader set of corporate outcomes is being increasingly viewed through the lens of governance (G) frameworks. Such frameworks include reference to a set of stakeholder implications that are more broad than the traditional shareholder perspective.

In this ESG discussion series we seek to investigate and evaluate trends in capital allocation and the impacts of broadening the set of performance measures. The issues to be considered include: (1) the progression of company analysis beyond purely financial outcomes; and (2) the shift from simple wealth impacts from the individual shareholder to the inclusion of wellbeing implications for the community as a whole.

This masterclass will be presented by:

David Langford, FCPA (Director Long Lake Research and UTSB Adjunct Professor)

David Langford

Tim King, CFA, (Chief Investment Officer at Melior Investment Management)

Tim King

Industry guests include Phin Glover and April Lowis from the Credit Suisse ESG team.

Phin

Phineas Glover joined Credit Suisse in April 2018 as Head of Environmental, Social and Governance (ESG) research in equity research in Australia. He joined from Macquarie Bank where he held the same position. His career has spanned investment research, fund management and ESG specialisms. Phineas previously co-founded the UK Investor Forum, a membership organisation now representing institutions with c. £14 trillion global AuM. The Forum combines investment and ESG disciplines into an engagement framework that focuses on long term value creation. He previously headed up collective shareholder engagement on behalf of fund managers at the Association of British Insurers, worked on the buy-side as an equity analyst at The Co-operative Asset Management and had spells as a senior adviser to EY. Phineas holds a BA from Brunel University in business management and economics and an MSc from Birkbeck College, University of London in business strategy, economics and the environment.

April

April Lowis is an Equities Research Analyst in the Environmental Social Governance (ESG) team at Credit Suisse. April first joined Credit Suisse in June 2017 within the Private Bank, moving into Equity Research in July 2018. Prior to Credit Suisse, April was Client Relationship Manager at a boutique wealth management firm and completed her Bachelor of Applied Finance and Bachelor of Commerce – Professional Accounting in 2015.

Masterclass 1: E

  • What does ESG matter in financial analysis: risks and opportunities
  • Why does E specifically matter and how does E manifest itself in risk and opportunities?
  • Key elements of E - climate change, emissions, waste, water scarcity, biodiversity.
  • A discussion of climate change and the risks and opportunities that companies face.
  • The importance and implications of  the TCFD (Task Force on Climate Related Financial Disclosures)
  • Water is a looming issue in Australia. How will this impact companies?
  • The risk and opportunities with plastics.
  • What are the consequences for fiduciaries?
  • How are investors responding to ESG risks

The CFA Society Sydney has determined that this program qualifies for 1.5 CE credit hour(s) under the guidelines of the CFA Institute Continuing Education Program. If you are a CFA Institute member, use the member app to record your CE credit for your participation in this presentation

For event questions, please email gerhard.hambusch@uts.edu.au.

Register here 

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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.