The CFA ESG Curriculum: Key Topics and Study Guide

Discover how the CFA ESG Certificate can boost your career by building essential skills in sustainable investing—valuable for professionals in any industry.

Introduction to the CFA ESG Curriculum

As the demand for sustainability grows not only in finance but also in the broader economy, corporations are increasingly incorporating sustainability measures into their processes.

This approach not only helps improve carbon footprints and governance measures but also enhances understanding of risks and opportunities.

The certificate in ESG investing provides a robust framework for understanding environmental, social, and governance (ESG) factors within investing.

Designed by the CFA Institute, this program is crafted to help finance professionals grasp the impact of ESG factors on investment decisions, offering a global credential that’s recognized worldwide.

The key question we often receive is: I don’t work in finance; is the certificate in ESG investing still suited for me? Yes, it is. The certificate is not only for investors but also for companies and management. ESG is helpful in providing a feedback loop for corporations to understand risks and opportunities.

And don't be intimidated by the prestigious CFA Institute—you don’t need any finance knowledge to pass the exam (see prerequisites below). The only thing you need is an interest in ESG.

Why Pursue the CFA ESG Program?

The CFA ESG investing curriculum not only builds a strong foundation in ESG investing but also enhances career prospects for a wide range of professionals, including Sustainability Officers, Accountants, Consultants, and anyone engaged in sustainability-related roles.

This program is invaluable for individuals in various sectors who want to deepen their understanding of how ESG factors impact business strategy and risk management.

Beyond finance, it’s designed to provide practical knowledge of integrating ESG issues into the investment and corporate processes, risk management, and portfolio analytics—skills that are increasingly essential as companies seek to incorporate sustainable practices across functions.

Whether you’re in finance or working in corporate sustainability, consulting, or accounting, the ESG Investing program equips you with a highly transferable skill set that can enhance your career and prepare you to meet the growing demand for sustainability expertise.

Is the CFA ESG difficult?

This is a question we receive regularly.

Don’t be put off by the CFA Institute's reputation for challenging programs. The ESG investing curriculum does not require any prior knowledge in portfolio management or sustainability.

Over the span of 600 pages, the ESG investing syllabus covers all essential concepts, like stewardship, valuation, or the SFDR Articles 6 to 9. The Brainie Video Series, self-assessment questions at the end of each chapter, and Brainie chapter tests help you understand, test your knowledge, and prepare effectively for the exam.

So, it doesn’t matter in which industry, country, or company you work—you can excel in the certificate in ESG investing.

How many hours do you need for CFA ESG?

The Certificate in ESG investing typically requires 100-130 hours of preparation.

This equates to 2-6 months of study, depending on how many hours you can dedicate each week.

Of course, this also depends on your existing knowledge—ESG experts will likely manage with less than 100 hours, while ESG novices may require a bit more.

The majority of your time will be spent reading the current syllabus, understanding, memorizing, and reviewing the content. This includes writing down key points and highlighting sections in the Brainie Summary Notes.

The other half of the time is needed for deep-diving into concepts like the transition to a carbon-neutral economy, getting an overview of regulatory landscapes, and understanding the do's and don'ts in environmental, social, and governance factors.

There’s no one-size-fits-all answer, but the 100-130 hours should be sufficient for about 90% of candidates.

What are the prerequisites for CFA ESG?

There are no formal prerequisites. For further information check the article How to Pass the CFA ESG Exam.

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CFA ESG Certificate Syllabus: An Overview

The CFA ESG curriculum is comprehensive, covering all aspects of ESG factors, from climate change to corporate governance.

This section gives you an outline of the CFA ESG certificate syllabus and highlights key topics that will help prepare you for the exam.

Understanding Environmental, Social, and Governance (ESG) Factors

ESG factors are the building blocks of sustainable investing, focusing on how companies and industries impact the world around them. The ESG investing syllabus offers insights into:

Environmental Factors: Topics like climate change, resource management, and pollution.
Social Responsibility: Issues like diversity, labor practices, and social impact.
Governance: Corporate governance factors, including shareholder rights, executive pay, and board accountability.

This comprehensive approach ensures a solid grounding in ESG considerations, crucial for sustainable business practices.

ESG Investment and the Investment Process

The ESG investing syllabus dives deep into ESG integration within the investment process, covering essential ESG analysis and evaluation techniques.

Understanding material ESG factors is crucial for sustainable investing, and the curriculum focuses on integrating these factors into portfolio construction and management.

It further emphasizes the importance of data disclosure, as well as the need for standardized disclosure by companies to improve comparability across industries, sectors, and countries.

The regulatory backdrop is also significant, showing trends and likely developments in the coming years.

The syllabus also explores ongoing harmonization measures that aim to standardize practices, though some cultural differences will remain—such as variations in governance between Europe and Japan.

Exam Structure and Key Details of the CFA ESG Program

Upon registering for the Certificate in ESG investing program, candidates select an exam date.

Please note, a USD 30 rescheduling fee applies if you wish to change your exam appointment, and rescheduling is not permitted within 72 hours of the scheduled exam. For more details, visit the CFA Institute website.

The exam format for the ESG investing certificate is flexible, allowing candidates to choose between a remote examination or taking it in-person at a designated test center. Key details include:

Exam Format: The CFA ESG exam consists of multiple-choice questions designed to assess your understanding of ESG factors and their application in investment.

Exam Duration: 2 hours and 20 minutes to answer 100 multiple-choice questions.

This flexibility makes the certification accessible to professionals from diverse locations, including countries like India, US & UK, and Italy.

Core Competencies of the CFA ESG Syllabus

The CFA ESG syllabus is divided into core competencies that reflect the skills needed in ESG investing:

ESG Analysis: Techniques to assess ESG factors and evaluate their financial impact.
Portfolio Analytics: How to incorporate ESG data into portfolio construction and analytics.
Risk Management: Understanding how ESG issues influence business risks and return potential.
Client Reporting: Communicating ESG integration and results to clients.

Each module is designed to build competencies that will be invaluable to your career.

Essential Study Resources for the CFA ESG Program

Preparation for the CFA ESG program involves a mix of CFA curriculum materials, case studies, practice questions, and mock exams. Here are some key resources:

ESG Investing Curriculum: The official ESG investing curriculum provides the core material, including in-depth insights into the latest ESG standards and frameworks.
Self-Assessment Questions: The official ESG investing curriculum includes end-of-chapter questions, and third-party providers like Brainie offer additional self-assessment questions.
Video Series: The ESG investing curriculum is a self-study exam, requiring no formal attendance in classes or courses. For those wishing for additional material, the Brainie Series covers the essentials of the ESG investing syllabus.
Mock Exams: Realistic mock exams give you a sense of the exam format and help identify areas where you need improvement.
Case Studies: Real-world cases on topics like the circular economy and fiduciary responsibilities, offering practical examples of ESG integration.

Using these resources will enhance your understanding of ESG investing and ensure you’re well-prepared for the exam.

Conclusion: Why the CFA ESG Program is Critical for Your Career

As ESG considerations become a standard in financial analysis, obtaining the CFA ESG certification gives you a competitive edge.

It equips you with the knowledge to make ethical and sustainable decisions, paving the way for a career in sustainable finance.

Whether you are an investment manager, financial analyst, or corporate professional, this certification helps you integrate material ESG factors into the investment process and manage business risks effectively.

The ESG investing curriculum is globally recognized and prepares you to contribute to a sustainable future.

Patrick Rissi, CFA

Founder of Brainie

Brainie is a CFA Institute Prep Provider offering prep material for the CFA Institute Certificate in ESG investing, the GARP Sustainability and Climate Risk Certification and the SASB FSA credential.