SG Analytics Interview Questions, Process, and Tips

Environmental, social, governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company.

• Environmental factors focus on a company's impact on the environment, such as carbon emissions, waste management, and resource conservation.

• Social factors assess how a company manages relationships with employees, suppliers, customers, and the communities in which ...read more

The most recognized certification company for Environmental compliance and Health & Safety management is ISO.

• ISO 14001 certification for Environmental compliance

• ISO 45001 certification for Health & Safety management

• Other relevant certifications include OHSAS 18001 and ANSI/AIHA Z10

Independent board members are not affiliated with the company, while dependent board members have ties to the company.

• Independent board members are considered to be more objective and less influenced by company interests.

• Dependent board members may include executives, shareholders, or individuals with close ties to the company.

• Independent board members are often brought in to provide unbiased perspectives and oversight...read more

Documents considered in ESG Research process include company reports, sustainability reports, industry publications, and third-party research.

• Company reports such as annual reports and financial statements

• Sustainability reports detailing environmental, social, and governance practices

• Industry publications providing insights on ESG trends and best practices

• Third-party research reports from organizations like MSCI or Sus

ESG stands for Environmental, Social, and Governance. The pillars of ESG are the three key factors used to measure the sustainability and ethical impact of an investment in a company.

• Environmental: Focuses on a company's impact on the environment, such as carbon emissions, waste management, and resource conservation.

• Social: Considers how a company manages relationships with employees, suppliers, customers, and the comm...read more

Clean energy refers to energy sources that produce minimal or no harmful emissions, such as solar, wind, hydro, and geothermal power.

• Clean energy sources are renewable and sustainable, unlike fossil fuels.

• Examples of clean energy sources include solar power, wind power, hydroelectric power, and geothermal power.

• Clean energy helps reduce greenhouse gas emissions and combat climate change.

• Investing in clean energy techno...read more

Scope 1, 2, and 3 refer to different categories of greenhouse gas emissions.

• Scope 1 emissions are direct emissions from sources that are owned or controlled by the organization, such as fuel combustion in boilers or vehicles.

• Scope 2 emissions are indirect emissions from the generation of purchased electricity, heat, or steam consumed by the organization.

• Scope 3 emissions are all other indirect emissions that occur in t...read more

Scope 4 refers to the indirect emissions that occur in the value chain of the reporting company, including emissions from purchased goods and services, transportation, and waste disposal.

• Scope 4 emissions are not included in the traditional greenhouse gas reporting scopes 1, 2, and 3.

• These emissions are often more difficult to measure and manage compared to direct emissions.

• Examples of scope 4 emissions include emissio...read more

TCFD, GRI, and SASB are frameworks used for reporting on climate-related financial disclosures, sustainability, and material ESG factors.

• TCFD stands for Task Force on Climate-related Financial Disclosures, providing recommendations for voluntary climate-related financial disclosures by companies.

• GRI refers to Global Reporting Initiative, offering a framework for sustainability reporting to help organizations understand...read more

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value from another column.

• VLOOKUP stands for 'vertical lookup'

• It is commonly used to search for a value in the leftmost column of a table and return a value in the same row from a specified column

• Syntax: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• Example: =VLOOKUP(A2, B2:D10, 3, FALSE) - searches for t...read more

Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and invest in a variety of assets.

• Hedge funds aim to generate high returns by using various strategies such as leverage, derivatives, and short selling.

• They are typically only accessible to accredited investors due to their complex and risky nature.

• Hedge funds charge both a management fee and a performance fee base...read more

Private equity is a type of investment where funds are raised from institutional and high-net-worth investors to acquire equity ownership in companies.

• Private equity firms typically buy out existing companies or invest in growing businesses to help them expand.

• Investors in private equity funds expect high returns, often through a combination of capital appreciation and dividends.

• Private equity investments are typically...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors can buy shares of mutual funds, which represent a portion of the holdings in the fund.

• Mutual funds offer diversification, liquidity, and professiona...read more

Alternative investments are non-traditional assets such as private equity, hedge funds, real estate, commodities, and collectibles.

• Alternative investments are typically less liquid than traditional investments like stocks and bonds.

• They have the potential to provide higher returns but also come with higher risks.

• Examples of alternative investments include venture capital, cryptocurrencies, and fine art.

• Investors often ...read more