As happened in 2024, the CFA Institute updated the exam preparation material (named “Curriculum”) this year. The latest update incorporates the newest industry practices and regulatory guidelines without disrupting the structure and core contents. Let's quickly go through the main changes:
Chapter 1: Introduction to ESG Investing
Updates focus on enhancing readability and including current ESG facts and figures.
Chapter 2: The ESG Market
Reflects the first outflows of sustainable funds in the US in a decade and updates on greenwashing regulations.
Chapter 3: Environmental Factors
Introduces a 'just transition', carbon pricing, and more detailed frameworks for climate analysis.
Chapter 4: Social Factors
Adds new case studies like Foxconn and Goldman Sachs to discuss social implications in business practices.
Chapter 5: Governance Factors
Updates on DEI and modern governance trends, including the UK's Corporate Governance Code.
Chapter 6: Engagement and Stewardship
Expands on stewardship codes and practical engagement strategies, illustrating them with new case studies.
Chapter 7: ESG Analysis, Valuation, and Integration
Discusses the role of AI and machine learning in ESG integration and updates on ISSB standards.
Chapter 8: Integrated Portfolio Construction and Management
Details changes in sustainable investing strategies and introduces new sections on sovereign debt ESG considerations.
Chapter 9: Investment Mandates, Portfolio Analytics, and Client Reporting
While not adding new content, significant edits streamline this chapter, reflecting evolving investment strategies.
For the sake of completeness, here is the link to the official document from the CFA Institute:
Good luck with your preparation and stay tuned for new material!
