The recent pandemic has brought ESG (environmental, social and governance) issues to the forefront of everyone’s minds.
ESG matters. And investors and companies around the world are reacting fast to this current situation, pointing to a longer term demand for investment professionals with green finance and responsible investment knowledge.
CFA Institute’s ESG Certificate may be a practical and affordable answer to augment your current skillset with some sustainable finance credentials.
There has been some changes in 2023, so here’s the ultimate guide with all the info you need!
Initially developed by CFA UK in 2019, from 1st September 2021, the Certificate in ESG Investing is owned and administered by CFA Institute to provide worldwide access to this global credential.
This certificate is designed to meet the investment sector’s increasing demand for further education, guidance and standards around ESG (environmental, social and governance).
As of 31 Jan 2022, the CFA ESG certificate has already registered more than 16,046 registrations globally.
Most candidates have come from the UK, where the Certificate was first offered, followed by the US, Switzerland, France, Hong Kong and Singapore with interest growing around the world.
This course goes for a broad framework approach, teaching its candidates how to analyze and integrate material ESG factors into their day-to-day investment roles. It is designed for investment professionals in all roles, from asset management to sales and distribution, as well as students seeking a career as an ESG analyst in the investment sector.
The Certificate in ESG Investing is also recognized by the UN PRI (Principles for Responsible Investment), a leading proponent of responsible investment. Although supported (but not part of) United Nations (UN), UN PRI is an independent, non-profit organization that seeks to encourage investors to use responsible investment to enhance returns and better manage business risks.
There are in-person and online proctored exams (certain locations only) managed by Prometric, CFA Institute’s global testing partner. It is best to check if in-person or remote testing options are available in your area before registering.
The Certificate in ESG Investing:
Similar to most other professional designations such as CFA, FRM, IMC or CAIA, the ESG Investing certificate is also a self-directed learning program:
The ESG exam can be taken all year round, and also remotely via online proctoring in certain locations only. You can find your nearest ESG test center here. From 2023, candidates are required to sit the exam within 6 months of the registration date.
Just like Investment Management Certificate and Certificate in Climate and Investing (CCI), the Certificate in ESG Investing is a Level 4 qualification, which means that the level of difficulty of the qualification broadly equates to the first-year of an undergraduate degree.
According to a candidate who passed recently (who is also a CFA charterholder and an IMC certificate holder), about 25% of the ESG Investing exam questions tests quantitative knowledge.
The pass mark ranges from 60%-70%, with an average pass rate of 81%.
The Certificate in ESG Investing consists of one exam with 100 multiple-choice and item-set questions, with an allocated time of 2 hours and 20 minutes.
The ESG syllabus has 8 chapters which covers a broad overview of the development of ESG investing, combined with technical aspects such as portfolio constructions.
The topics areas and exam weights are as below:
| ESG Investing Certificate Topic Areas | Topic Weights |
|---|---|
| Overview to ESG Investing and the ESG Market | 8–15% |
| Environmental Factors | 8–15% |
| Social Factors | 8–15% |
| Governance Factors | 8–15% |
| Engagement and Stewardship | 5–10% |
| ESG Analysis, Valuation and Integration | 20–30% |
| ESG Integrated Portfolio Construction and Management | 10–20% |
| Investment Mandates, Portfolio Analytics and Client Reporting | 5–10% |
The 2023 ESG Investing exam fee structure is nice and straightforward:
You can reschedule your exam appointment for a non-refundable fee of $30 if it is done at least 72 hours before the appointment.
It is a cost effective and time efficient investment to demonstrate green finance and responsible investing credentials internationally.
Juggling a full time job with studying is tough as is, so it is worth considering using third party prep providers to help focus your studies with more practice questions and mock exams – which as we all know are one of the more effective ways to learn.
Here are a few CFA ESG Investing prep providers worth considering:
The Certificate in ESG Investing is currently available via Prometric in hundreds of test sites, with plans to further expand the availability of this qualification globally.
Candidates can sit for Certificate in ESG Investing throughout the year (except holidays and weekends).
That said, candidates must carefully plan the time of exam registration, bearing in mind that the ESG Investing syllabus gets updated annually on 1st October and remains until 30th September the following year, unless otherwise necessary.
Here’s a quick summary of the registration and exam scheduling details:
| Exam Registration | ESG Investing exam registration is done through CFA Institute, with the certificate currently available globally. Upon registration, candidates will receive an email confirmation providing scheduling instructions, a unique username and password. Note that candidates can only view exam availability after registration. |
| Exam Scheduling | After registration and payment, candidates will need to wait for 2 working days before they are permitted to schedule an exam. Candidates can sit for exam on most working days at selected Prometric centres worldwide. |
| Exam Registration Expiry | Candidates have 6 months from initial exam registration to sit for the exam. Otherwise, the registration will expire after 6 months with no refunds given. |
| Number of Exam Attempts | If you fail the exam twice within a 6 month period, you can only register 6 months after the date of your first failed appointment. No further attempts are allowed once a candidate passed. |
While a solid grounding in the investment process is strongly recommended (via formal qualification or experience), there are no formal entry criteria for candidates.
We think it is great that CFA Institute has made this course so approachable to all, because this COVID-19 pandemic experience we are all going through now is just going to bring ESG issues to the forefront in investing.
Candidates who successfully pass the ESG exam can claim a digital badge and earn the CFA Institute’s Certificate in ESG Investing.
Having the Certificate in ESG Investing could be a key differentiator in the financial services sector, especially if you’re job hunting during this COVID-19 pandemic.
Given the low time and money investment, it does represent good value for money given the unique and practical qualification you would attain.
By completing and earning the Certificate in ESG Investing, you can expect to:
We are comparing CFA ESG Investing vs GARP’s SCR certificates below, although it is worth mentioning that EFFAS’ Certified ESG Analyst (CESGA) is a higher Diploma level certificate in ESG investing that is worth checking out, as you’ll get a proper title upon passing (CESGA or Certified ESG Analyst), which is not present in either CFA ESG Investing or GARP’s SCR certificate below.
In short, while both qualifications focus on sustainable investing, there are some slight differences in focus about them:
Both SCR and ESG Investing Certificate are now available globally.
While both are good quality qualifications from reputable organizations, the choice depends on which certificate has more relevance to your preferred career path: investments or risk management.
| CFA Institute’s Certificate in ESG Investing | GARP’s Sustainability & Climate Risk | |
|---|---|---|
| Suitable for | Students who are keen on an investment career; or Investment professionals of all roles (asset management, sales & distribution, wealth management, product development, financial advice, consulting, risk etc), who are looking to understand and integrate ESG issues into the investment process | Risk management professionals of all disciplines (finance, supply chain, operations, technology etc) who are keen to learn about sustainability and how to manage climate risk in their industries. Students interested in a risk management career. |
| Pre-exam qualifications | None, although some insights in the investment process is strongly recommended (via formal qualification or experience) | None |
| Number of Exams | 1 | 1 |
| Exam Frequency | Available to book throughout the year (except weekends and holidays) for in-person exams globally. Also available to book for remote proctoring at home globally. Maximum 2 attempts in 6 months | Specific 2 week windows about 3-4 times a year. |
| Exam Format | 100 multiple-choice questions in 2 hours and 20 minutes On-site computer-based testing or online remote testing | 80 multiple-choice questions in 3 hours On-site computer-based testing |
| Pass Rates | 81% on average | Data not available yet as first SCR exams start on Sep 2020 |
| Fees and Costs | US$ 795 | Around US$ 525-650 depending on GARP membership status or presence of other credentials |
| Study Hours Needed | 100+ hours | 100-130 hours |
| Post Exam Requirements | None | None, although there are 20 hours of voluntary continuous professional development (CPD) every 2 years |
Overall, the Certificate in ESG Investing seems to be a cost efficient means to signal your green finance credentials in this increasingly competitive marketplace.
If you’re in the investment sector, this ESG qualification would be useful to have a solid base level of knowledge about ESG and how to incorporate it into your day-to-day role. If you’re a student keen to start a career in investments, this certification – combined with an investment-focused qualification like Chartered Financial Analyst (CFA) – could give you a great head start with ESG credential as a valuable differentiator.
Is this CFA ESG Certificate something you’d consider taking on to enhance your resume/CV? Let us know in the comments below!
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View Comments
Hi .. I wanted to understand the marking criteria.. whether its based on each chapter or module or in total average??
Would help if someone share a detailed information on it.
TIA
Hi Sips, it's a total average score of the whole exam.
How do I make a second appointment for an offline exam? Is there a time interval requirement from the first time?
Hello, very good information here! Congrats!
One question : CFA ESG certification is only in english? or It can be in spanish?
thank you,
Male
It's in English only
Hello Sophie,
I have experience in Business Management and Strategy, Business Development, Sales, and Client Services. I'm interested in transitioning to the ESG field and I'm considering the CFA-Certificate in ESG Investing. Would you recommend it as a first step?
Also, I can't find the online remote testing registration on the website. Can you help?
Thanks,
George
Hi George, it seems like Certificate in ESG Investing is a good first step for your case given its global recognition and introductory nature.
I believe you have to register first, then choose the online proctoring option.
Hi Sophie,
Thank you for your help. My ultimate aim is to become a sustainability consultant, with a primary focus on climate change and renewable energy. I was wondering if you could suggest any other certifications, programs, or fellowships that might be valuable for me to consider?
Once again, thank you for your guidance.
Warm regards,
George
Hi Sophie,
One question: I understand we have 6 months to do the CFA ESG Exam. If I register at the end of July 23 and do the Exam on January 24, the Exam is still based on the current edition (edition 4)? Or new Edition ?
Thanks,
Another question Sophie,
Do these New Editions (historically) represent considerable changes in the curriculum? Or just minor updates?
Thank you
Hi Edy,
CFA Institute just got back to me.
They said that the ESG curriculum is updated on January 1. Candidates will be tested on the curriculum they register for. Anyone who registers between now and Jan 1 will be tested on the current version of the curriculum. Anyone who registers on Jan 1 and after will be tested on the updated curriculum.
So if you register on 23 July, you'll be tested on the current edition (not 2024).
Hi Edy, it's hard to tell from year to year as sometimes it can be minor, sometimes it can be a big change as it depends on the industry's evolution. The content is constantly kept updated with the industry. So who knows? :)
I'm awaiting CFA Institute's confirmation on your other question so will get back to you when we hear back!
Hi! I am also curious about Edy’s first question. Did CFAI reply?
Thanks.
Hi Inigo (and Edy),
Yes CFA Institute just got back to me.
They said that the ESG curriculum is updated on January 1. Candidates will be tested on the curriculum they register for. Anyone who registers between now and Jan 1 will be tested on the current version of the curriculum. Anyone who registers on Jan 1 and after will be tested on the updated curriculum.
Hope this clarifies!
Hi CFA friend,
I am pursuing a Ph.D. in Economic Development but I am really interested in ESG and would like to follow a consulting career path. Should I take the CFA ESG or GARP SCR? My thesis is about climate change and migration so my knowledge of climate change is academically good.
Thank you!
Hi Hung, on balance CFA Institute's Certificate in ESG Investing would give you the broader scope and brand name recognition you need for a consulting career. SCR may be too specialist at this stage as it focuses on climate risk only. My opinion at least :)
Thanks for your sharing!
ESG Test Drive Exam Experience
Be careful with the timing of the exam. I scheduled the ESG TEST DRIVE exam with Online Proctoring for 27 of March at 1:30 Brussels time.
In the Prometric system and confirmation letter there is absolutely no mentioning if it is 1:30 a.m. or 1:30 p.m. Of course, I was not expecting the exam to take place at 1:30 after midnight, which is unacceptable. Moreover, 1:30 a.m. appears to be the evening of Sunday (26 March) on the East Coast, and I read that online proctoring does not take place on weekends and public holidays.
So, having logged in the Prometric Online Proctoring App at 1:30 p.m. (13:30 Brussels time), I found out that the exam window is now longer available.
$30 lost
Best,
To ensure this is not one more Fake Review in this chat, can you please share your CFA ESG Badge/Credential?
Every candidate that passes the exam gets a CFA ESG Badge/Credential that is public/available to everyone to check. The CFA Institute provides these public credentials precisely to avoid fraud, misleading information, fake resumes, and fake reviews.
Hey I'm still confused between CFA's ESG certification vs CESGA.
Based in India in the Equity Research profile.
What would be the better course to take on? Higher weight age to global appeal, ofcourse!
Someone I know was doing the exam and she typed her whole answer and then went to the next page. When she went back she couldn't see my answer it had disappeared. Does this mean it. got submitted. Assuming. this is because it doesn't let you make changes. once you go. the next. page?