Course details
Sustainable Finance
FINA 20204A
This course will provide an introduction to sustainable finance. Students will learn how to integrate environmental, social, and governance (ESG) issues into corporate decision-making and portfolio management.
The course presents the methodologies for analyzing and integrating environmental, social, and governance (ESG) criteria available to corporate financial decision-makers, investors, and portfolio managers. We will analyze the impact of ESG factors on the investment and financing decisions of these financial actors. Approaches to climate risk assessment and various measures of environmental footprint will be presented in terms of their uses and limitations.
The course will help student to be more familiar with the landscape of data providers and to understand the differences between the ESG ratings of different rating agencies. Students will also learn about the current state of sustainable investment markets, the regulatory framework, and the mechanisms used by shareholders to influence companies (proxy voting, shareholder engagement). We will examine important empirical studies on the impact of ESG considerations on investment risk and return. Finally, the challenges of sustainable finance, such as the lack of standardization and greenwashing, will be addressed.
The course will help student to be more familiar with the landscape of data providers and to understand the differences between the ESG ratings of different rating agencies. Students will also learn about the current state of sustainable investment markets, the regulatory framework, and the mechanisms used by shareholders to influence companies (proxy voting, shareholder engagement). We will examine important empirical studies on the impact of ESG considerations on investment risk and return. Finally, the challenges of sustainable finance, such as the lack of standardization and greenwashing, will be addressed.
Themes covered
Introduction to sustainable finance and definition of key environmental social and governance (ESG) issues.
Overview of the responsible investment industry: history of responsible investment rationale and different approaches to responsible investment.
ESG rating agencies and databases: overview of the main players and their methodologies and analysis of the differences between rating agencies.
Greenhouse gas accounting and reporting.
Analysis of climate change risks: transition risks physical risks and stranded assets.
Overview of the current state of the sustainable finance market and trends in sustainable financial instruments such as green bonds social bonds and sustainability-linked bonds.
Review of empirical studies on the impact of ESG integration on the risk-return profile.
Policies regulations and frameworks that impact and influence ESG management.
The various mechanisms used by shareholders to influence companies: proxy voting and shareholder engagement.
Frameworks for assessing the positive impact of an impact strategy.
A critical look at the challenges of sustainable finance such as the lack of standardization and greenwashing.
Important notes
Course in French : FINA 20204
Prerequisite(s) : FINA 10200(A)
Course code
FINA 20204A
Subject
Finance
Program
Bachelor’s degree (BBA)
Instruction mode
On-site learning
Credits
3