If you want to build your knowledge base of ESG investing, getting accredited is crucial. Here is how to get a certificate in ESG investing.
Gone are the days when only financial factors were crucial to investors. Nowadays, they also consider Environmental, Social, and Governance (ESG) aspects when assessing the risks and growth of a company. Today, people like to invest in a company that responds positively to environmental, social, and governance (ESG) issues.
There is no shortage of companies worldwide that care for these concerns. Moreover, they also attempt to resolve these issues with continuous efforts. Microsoft, J.B. Hunt, Oracle, and Adobe are a few.
The trend of investing in such businesses has grown over time. However, integrating the ESG factor in investing is not as simple as it seems. You must have sufficient knowledge about ESG investment to understand its specifics.
Today, many people working in the investment industry and even some investors are getting certificates in ESG investing. In this post, we’ve described how to get certified for ESG investing.
However, before that, let’s find out what exactly it is.
What is ESG Certification?
ESG investing is a new concept comparatively. Several investment practitioners and investors do not have adequate knowledge about it. However, they want to know how to participate in this investment and gain benefits.
ESG involves several principles and norms that every investment practitioner must know. Understanding the requirement for a certification program about ESG investing, CFA Society, United Kingdom, launched ESG certification in 2019.
However, in 2021, it became the administration and ownership of the CFA Institute. ESG investing certification aims to provide people with ESG knowledge, information, and skills to understand ESG factors in the investment process.
By joining this certification course, you get practical and technical knowledge of ESG investing. Additionally, you learn about the related trends in the market.
The best point about the program is that the leading practitioners in the industry prepare the learning material for the CFA Institute certificate course. In addition to this, the UN Principles for Responsible Investment (PRI) recognizes these learning materials.
See Related: Is OpenInvest Good for ESG?
Why Get a Certificate in ESG Investing?
ESG is no longer a buzzword. It is gradually becoming mainstream in the investment sector. According to Forbes, ESG products and companies account for almost 25% of all investments in the United States.
During the COVID-19 pandemic, ESG investing gained good traction. Nowadays, customers shop from businesses concerned about contemporary environmental, social, and governance issues.
If you are an investor or work as an investment analyst, you should be familiar with ESG investing. The CFA certificate in ESG investing is an ideal program for gaining knowledge.
Below are a few significant benefits of getting an ESG certification:
- People in investment businesses must be aware of sustainable investing since it is the way of the future. A CFA certificate in ESG investing is an instrument for gaining this expertise.
- If you’re an investor or searching for a job in the investment industry, getting ESG certification can help you grow in your field. You can broaden your ESG knowledge and stay on top of your game.
- If you are interested in investment jobs, it will help you integrate ESG factors into your regular job.
- You can attend this certification course even if you want to enhance your understanding of ESG aspects.
How to Get Certified for ESG Investing?
Let’s find out how to get the certificate in ESG investing from the CFA Institute in detail.
Quick Overview of CFA Institute Certificate in ESG
The CFA Institute owns, manages, and awards this certificate globally. This certificate program is supported by the UN PRI (Principles for Responsible Investment).
PRI is an autonomous body that inspires investors to participate in responsible investment. So that they can generate good returns while minimizing risk.
Certificate in ESG Investing Syllabus & Curriculum
The institute updates the syllabus on the 1st of October per annum. The year starts from the 1st of October to the 30th of September. The current syllabus for ESG certification is as follows:
- Introduction/Overview of ESG: 4 to 8%
- The Environmental, Social, and Governance Market: 4 to 8%
- Environmental Factors: 6 to12%
- Social Factors: 6 to12%
- Governance Factors: 6 to 12%
- Engagement and Stewardship: 6 to 10%
- ESG Analysis, Valuation, and Integration: 20 to 32%
- ESG Integrated Portfolio Construction and Management: 8 to 14%
- Client reporting, portfolio analysis, and investment mandates: 4 to 8%
Total Study Time for CFA Certificate in ESG Investing
Students must complete a study time of 130 hours to get the certificate. As soon as you register for this certificate program, you get access to the resources such as:
- The syllabus for the whole program
- The entire curriculum in digital format
- Self-evaluation questions
- A mock test for practice
Exams for Certificate in ESG Investing
You can take the exam for the CFA Institute Certificate in ESG all year round. The exam is taken remotely with the help of an online exam invigilator. The availability of an online invigilator depends on local policies and the competency of the local system.
Note: Currently, an online invigilator is unavailable in every market. Candidates need to determine whether a physical testing location or an online testing facility is available in their area.
Examinees can choose the nearest test center. You must, however, take the exam within one year of your registration date.
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Structure of the Exam
The exam structure for the CFA Institute certificate in ESG investing is straightforward. There will be 100 questions in total, divided into the following question types:
- Standard Multiple-Choice Questions
- Item Set Questions.
For those who do not know, item-set questions comprise a brief suggestive description followed by four to six multiple-choice questions.
Candidates have to answer the questions using the details supplied in the description. The examinee will get two hours and twenty minutes to answer 100 questions.
The examinee will be given two hours and twenty minutes to answer 100 questions. Candidates need to find whether a physical testing location or an online testing facility is working in their area.
Examination Fee for Certificate in ESG Investing
The fee for exam registration at the CFA Institute certificate in ESG Investing is USD 675. When you register for this certificate program, you can purchase a hard copy of the official training handbook for an additional USD 135 plus shipping.
Note: All fees do not include your local taxes such as GST (Goods and Service Tax), VAT, Sales Tax, and other taxes payable in your country.
At checkout, you will see an additional fee because CFA Institute adds sales tax at the local statutory rate.
Candidates may visit their Tax Policy page for more information. Once you register for a Certificate in ESG Investing, you have one year to schedule your exam. It is advisable to start studying before scheduling your exam. Once you have established your study speed, you can schedule your examinations accordingly.
Passing Scores for Certificate in ESG Investing
Regarding the exam difficulty, you can expect it to be equivalent to an Investment Management Certificate Program or an Undergraduate degree. The candidate must secure at least 60 to 70% if we talk about the passing score.
Once an examinee passes the exam, they get a CFA certificate in ESG investing from the CFA Institute. Besides this, they can also claim a digital badge.
See Related: Why ESG Investing is Important
Quick Steps for Exam Registration & Scheduling
Registration
You can enroll and register for the certification in ESG investing through CFA Institute here. You will get a confirmation email with your login ID and password as soon as you register. You will also get instructions for exam scheduling. Remember, you can check the exam availability after registration only.
Scheduling
Once you register successfully and pay the exam fee, you will have to wait for two working days before they let you choose a date and time for the exam.
As the CFA Institute has centers worldwide, you can take the exam at any Prometric location near you.
Expiry of Exam Registration
Do not forget that you have only one year to sit for the exam. Your registration is valid for one year; after that, you must re-register for the program. Remember, you will get no refund even if you don’t take the exam.
Number of Attempts
The good part is that the CFA Institute enables you to retake the exam four times in four months. However, you won’t get additional attempts if you have a passing score already.
To retake the exams, you must wait for at least three working days following the exam.
See Related: Best ESG Rating Agencies
Is the CFA Certificate in ESG Investing Available Worldwide?
Candidates from several countries across the globe can register for this online course. However, there are some regions where this course is not available yet.
For example, people in mainland China can’t enroll in it. Nevertheless, reports, webinars, and other online content on ESG-related topics are available at China Live and CFA Institute.
You can check the current test centers available in different countries here.
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Who can enroll for a certificate in ESG investing At CFA Institute?
There are no formal requirements for enrolling in an ESG investing certification program. Nevertheless, you must have a thorough understanding of the investment process.
Even if you don’t have prior experience in investment, you must be passionate about ESG investing at least. However, a certificate in ESG investing is ideal for the following.
Investment Practitioner
All investment practitioners can gain benefits by joining this certification course. It will help you learn more about how the ESG factor influences the current investing system. After studying this course, you can examine and incorporate ESG aspects into your responsibilities.
People Working in Financial Sector
If you are not an investor but work in a front and back office with relevant jobs, you can join this CFA certificate in ESG investing program. Anyone in jobs like product development, wealth management, sales and distribution, or financial advice can take advantage of this certification.
See Related: Reasons Why ESG Investing is Important
Job Seekers
If you’re looking for a stable job position in the finance sector, getting a certificate in ESG investing can give you an edge over other job candidates. Several people worldwide are making a career as ESG analysts.
According to efinancialcareers, Senior ESG fund managers can earn up to £500k in London. During this COVID-19 pandemic, an ESG investing certificate can provide you the upper hand if you are looking for a job.
Overall, we can say a certificate in ESG investing is worth considering. It could be a key differentiator if you want to succeed in the financial services business.
In addition to this, the course can help investors interested in ESG investing learn more about the rapidly growing ESG investment industry.
If you are not one of the above, still, you can join this program. It will enhance your knowledge of Environmental, Social, and Governance issues.
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