With the increasing popularity of ESG investing, more and more financial institutions and individuals are paying attention to ESG certificates as a way to demonstrate ESG expertise. The CFA Institute’s Certificate in ESG Investing, CESGA, GARP’s SCR certificate, and SASB’s FSA certificate are among the most sought-after ESG credentials. This article provides a comprehensive evaluation and comparison of these major ESG certificates in terms of exam format, syllabus, study time, exam fees and recognition. The key factors in selecting a suitable ESG certificate are also discussed. By reviewing the main ESG certificates, investors can make informed decisions when pursuing ESG education and credentials.
CFA ESG Certificate Offers Comprehensive Curriculum and Wide Recognition
The CFA Institute’s Certificate in ESG Investing provides a comprehensive 130-hour curriculum across 9 modules, covering ESG investing concepts, analysis and integration. With no prerequisite and open enrollment, it offers flexibility for test-takers. The exam comprises 100 multiple-choice questions taken online and has a typical 70% pass rate. Costing $675, it is recognized by financial institutions globally. The certificate reinforces expertise and signals commitment to ESG integration.
CESGA Emphasizes Europe and Practical Applications
The CESGA certificate from EFFAS requires purchasing their online course for €1,250. The exam costs €1,500, includes case study questions and is held at fixed schedules. CESGA has a more practical focus, geared towards analysts crafting ESG reports and recommendations. It enjoys strong recognition in Europe but less so elsewhere. The ability to use “CESGA” as a title appeals to some.
SCR Prioritizes Climate Risk and Risk Management
Administered by GARP, the SCR certificate zeroes in on climate risk and ESG integration in risk management. The 100-hour curriculum suits those in risk management roles. With fixed exam dates annually, it costs $650 normally. The multiple-choice format resembles GARP’s FRM exam. While respected in risk management, its specialized focus limits broader applicability versus CFA’s option.
SASB’s FSA Focuses on ESG Disclosure
SASB’s Fundamentals of Sustainability Accounting (FSA) credential focuses squarely on ESG disclosure and reporting frameworks. The two-level format spanning ~400 pages suits sustainability reporting roles. While feared as accounting-intensive, FSA requires no accounting knowledge. Costing $900 in total, it complements services around disclosure standards. The stepwise structure may deter some investors versus a one-shot exam.
In selecting an ESG certificate, investors should consider their specific job role, geographic market, exam format preference, budget and target level of specialization versus breadth. For flexibility and globally applicable ESG knowledge, the CFA certificate stands strong. But niche programs like CESGA, SCR and FSA have their place for more focused ESG pursuits.