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Chapter 10: ESG Considerations in Equity Investments

Chapter 10: ESG Considerations in Equity Investments (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.

In this section

  • ESG Factors and Their Impact on Equity Risk and Return
    ESG Factors and Their Impact on Equity Risk and Return (CFA Level 1): Why ESG Matters, Breaking Down ESG Factors, and Environmental Considerations. Key definitions, formulas, and exam tips.
  • Integrating ESG Data into Company and Industry Analyses
    Integrating ESG Data into Company and Industry Analyses (CFA Level 1): Why ESG Matters in Equity Research, Common ESG Data Sources, and Identifying Material ESG Factors. Key definitions, formulas, and exam tips.
  • Ethical and Governance Issues Relevant to Equity Selection
    Ethical and Governance Issues Relevant to Equity Selection (CFA Level 1): Significance of Governance and Ethics in Equity Selection and Board Composition and Structure. Key definitions, formulas, and exam tips.
  • Global Trends and Regulatory Developments in ESG Investing
    Global Trends and Regulatory Developments in ESG Investing (CFA Level 1): European Union (EU), United States, and Asia-Pacific. Key definitions, formulas, and exam tips.
  • Best Practices in ESG Integration
    Best Practices in ESG Integration (CFA Level 1): Collaboration Across Teams, Materiality Mapping, and Engagement Strategies. Key definitions, formulas, and exam tips.
  • Integration of Climate Risk Metrics into Equity Selection
    Integration of Climate Risk Metrics into Equity Selection (CFA Level 1): Understanding Climate Risk in Equity Analysis, Key Climate Metrics, and Integrating Climate Metrics into Equity Valuation. Key definitions, formulas, and exam tips.
  • Challenges in ESG Data Standardization
    Challenges in ESG Data Standardization (CFA Level 1): Patchwork of ESG Data Sources, Divergent ESG Ratings and Methodologies, and Self-Reporting Pitfalls. Key definitions, formulas, and exam tips.
  • Greenwashing and Its Detection
    Greenwashing and Its Detection (CFA Level 1): Different Shades of Greenwashing, Core Drivers of Greenwashing, and Risks to Investors. Key definitions, formulas, and exam tips.
  • Proxy Voting Policies in an ESG Context
    Proxy Voting Policies in an ESG Context (CFA Level 1): Background on Proxy Voting in ESG, Common ESG Voting Topics, and Influence of Proxy Advisory Firms. Key definitions, formulas, and exam tips.

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Chapter 9: Equity Valuation—Concepts and Basic Tools