Course Overview

The Fundamentals of Sustainability Accounting (FSA) Credential: Level II is an advanced certification designed for professionals seeking to deepen their expertise in sustainability and its financial implications. It focuses on evaluating the value of sustainability issues by analysing a company’s Environmental, Social, and Governance (ESG) performance, normalising sustainability data, and assessing sector-specific impacts.

Level II provides rigorous training in identifying and measuring sustainability risks and opportunities, and understanding how these factors influence financial performance and long-term business valuation. It is a key qualification for professionals aiming to bridge the gap between sustainability reporting and financial analysis.

This course adopts a practical, exam-focused approach, equipping participants with the ability to analyse ESG data, benchmark industry performance, and integrate sustainability considerations into financial valuation models. Participants will gain hands-on experience in techniques such as discounted cash flow (DCF) analysis, scenario planning, and performance benchmarking, enabling them to assess the impact of sustainability on long-term financial growth.

The FSA Level II Credential is widely recognised and valued by companies, investors, and consulting firms, positioning certified professionals as leaders in the evolving sustainability-driven financial landscape.

Agenda

Day — 1 Identifying Sustainability Issues

• Introduction to the FSA curriculum content and its structure within sustainability accounting
• Understanding the definition and nature of sustainability issues and how they affect business performance
• Discussing differences in sustainability profiles across industries and how sector characteristics influence ESG relevance
• Analysing how a company’s internal and external circumstances shape the materiality of sustainability issues
• Recognising the impact of governance structures and management practices on identifying and addressing material sustainability factors
• Understanding the interrelated nature of sustainability issues, including how environmental, social, and governance factors influence each other and overall business outcomes

Day — 2 Evaluating Sustainability Issues

• Understanding the importance of assessing the relationship between sustainability issues and a company’s financial position and future performance
• Describing the five-factor approach and how it is used to evaluate and prioritise sustainability issues
• Determining the importance of contextualising sustainability topics based on industry, geography, and business model
• Exploring best practices for using sustainability issue evaluation findings in decision-making, reporting, and valuation analysis
• Reviewing case studies that demonstrate how sustainability issues are contextualised and assessed across different industries

Day — 3 Evaluating the Comparability of Sustainability Information

• Introduction to data normalization and its importance in enabling meaningful comparison of sustainability information across companies and time periods
• Exploring different normalization measures and the criteria for selecting the most appropriate method based on data type and analysis objectives
• Understanding how to apply normalization techniques in comparative ESG analysis to ensure consistency and fairness in evaluation
• Steps for analysing the spread of industry performance, including:
  • Understanding ESG data structure and sources
  • Analysing data distribution patterns
  • Identifying outliers and handling non-normal distributions
  • Assessing overall data quality and reliability
• Recognising the importance of incorporating company-specific context when evaluating sustainability performance to ensure accurate interpretation and decision-making

Day — 4 The Connection Between Sustainability Performance and Valuation

• Introduction to the relationship between sustainability performance and its channels of financial impact on business valuation
• Understanding how to characterise the financial effects of sustainability risks and opportunities, and their influence on future cash flows
• Applying tools and techniques to assess the likelihood, timing, and magnitude of sustainability-related financial impacts
• Identifying and classifying different types and categories of sustainability metrics used in valuation analysis
• Utilising Discounted Cash Flow (DCF) analysis to integrate sustainability factors into financial valuation models and long-term investment assessment

Day — 5 Integration of Sustainability into Financial Valuation

• Understanding how to integrate ESG performance into financial valuation, particularly in assessing returns, profitability, and long-term value creation
• Applying scenario analysis techniques as a tool for evaluating different sustainability and financial outcomes under varying conditions
• Identifying best practices for managing sustainability-related risks and opportunities within investment and valuation frameworks
• Reviewing key strategies and tips for effective preparation for the FSA Credential Level II examination
• Conducting a final recap and Q&A session to consolidate learning outcomes and clarify key concepts

Learning Outcomes

Upon completion of the Preparation for the Fundamentals of Sustainability Accounting (FSA) Credential: Level II course, participants will be able to:

• Understand key sustainability issues and their impact on business value creation and financial performance
• Analyse the influence of a company’s internal and external operating environment on material sustainability factors
• Apply the five-factor framework to evaluate the financial and strategic impact of sustainability issues within a company
• Normalize and interpret sustainability data to compare company performance across industry peers and over time
• Analyse the dispersion of industry sustainability performance and assess the implications of sustainability variation across firms
• Link sustainability performance to valuation outcomes by associating ESG metrics with relevant financial impacts
• Develop the necessary skills and knowledge to effectively prepare for the FSA Credential Level II examination

Who Should Attend

The Preparation for the Fundamentals of Sustainability Accounting (FSA) Credential: Level II course is ideal for professionals seeking to understand the link between sustainability and financial performance, including:

• Finance professionals
• Investment analysts
• Accountants
• Auditors
• Sustainability officers and CSR managers
• Risk management professionals
• Investors and asset managers
• Corporate executives and board members
• Consultants and advisors