Sustainable Finance
| Module title | Sustainable Finance |
|---|---|
| Module code | BEMM261DA |
| Academic year | 2023/4 |
| Credits | 30 |
| Module staff | Dr Fernando Correia (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 0 | 12 | 0 |
| Number students taking module (anticipated) | 25 |
|---|
Module description
This course will introduce you to the fundamentals of sustainable finance. ESG (Environmental, Social, Governance) issues have become a major risk factor for investments. ESG data now form an integral part of decision-making by organisations and investors alike. This module will introduce you to key aspects of ESG, focusing on how to apply it in business and investment practice. You will develop an understanding of how ESG considerations form the base for sustainable and responsible decision-making in finance. Hereby, you will get introduced to a variety of ESG issues such as human rights, carbon emissions, biodiversity, climate change, and diversity.
Module aims - intentions of the module
This module will help you to develop the knowledge and skills to understand and apply key concepts of sustainability finance in a business and strategic organisational context. You will learn about a wide range of sustainability topics such as carbon emissions, human rights, biodiversity, and community involvement. We will base our learning process on recent research insights for a sound theoretical foundation. We will look at best practices from leading industry peers to provide you with a sophisticated toolset that allows you to apply key concepts of sustainable finance in everyday business practice. While you will learn to appreciate the opportunities and competitive advantages linked to ESG, you will also understand to view ESG topics as a major risk factor of organisations and investors alike. By looking at major scandals and lawsuits linked to ESG, we will elaborate critical features of these events and how these issues might have been mitigated.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Identify best practices for key sustainable and responsible finance elements derived from recent research insights
- 2. Assess major ESG disclosures and their relevance from a wide range of stakeholders such as management, investors, and society
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 3. Critically discuss sustainable finance topics involving a wide range of theories
- 4. Analyse the interrelations between business, society, and the environment and derive related trade-offs and opportunities for organisations
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 5. Apply ideas and experiences from different academic and professional disciplines and acknowledge differences related to culture, generations, and societies
- 6. Engage independently with and make reasoned judgements about research on sustainable finance
Syllabus plan
- Sustainability and stakeholder theory
- What is sustainability and why is it important in a business context?
- Financial Markets and investors decision-making
- Corporate responsibility and Governance
- Current stage of ESG in the UK and internationally
- Community involvement & philanthropy
- Accountability & human rights
- Corporate carbon performance
- Biodiversity
- Sustainability reporting and sustainability assurance
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 120 | 180 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled learning & teaching activities | 120 | Asynchronous online learning activities |
| Guided independent study | 180 | Including preparation for online content, reflection on taught material, wider reading and completion of assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Contributions to online fora discussions | N/A | Relevant to the week written | Written |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 90 | 10 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Exam 1 | 5 | 1 hour (max) | 1 | Written feedback |
| Exam 2 | 5 | 1 hour (max) | 2 | Written feedback |
| Written report 1 | 40 | 2,500 words | 1, 3-6 | Written feedback |
| Written report 2 | 50 | 3,500 words | 2-6 | Written feedback |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Exam 1 | Exam 1 | 1 | Reassessment period |
| Exam 2 | Exam 2 | 2 | Reassessment period |
| Written report 1 | Written report 1 | 1, 3-6 | Reassessment period |
| Written report 2 | Written report 2 | 2-6 | Reassessment period |
Indicative learning resources - Basic reading
Basic reading:
- Edmans, A. (2020). Grow the pie: How great companies deliver both purpose and profit. Cambridge: Cambridge University Press. (updated/new edition expected Q4 2021; either version can be used)
- Thompson, S. (2021). Green and Sustainable Finance: Principles and Practice. Kogan Page Publishers
- Schoenmaker, D., & Schramade, W. (2018). Principles of sustainable finance. Oxford University Press
- Cato, M. S. (2022). Sustainable Finance. Springer Books
Further specific readings will accompany each topic and will be posted along the online videos. Examples include:
- Gray, R., Adams, C. A., and Owen, D. (2014). Accountability, social responsibility and sustainability: Accounting for society and the environment. Harlow: Pearson
- Albuquerque, R., Koskinen, Y., & Zhang, C. 2019. Corporate social responsibility and firm risk: Theory andempirical evidence. Management Science ,65(10), 4451–69
- Dowell, G. W. S., S. Muthulingam. 2017. Will firms go green if it pays? The impact of disruption, cost, and external factors on the adoption of environmental initiatives. Strategic Management Journal, 38(6) 1287–1304
- Howard-Grenville, J., S. J. Buckle, B. J. Hoskins, G. George. 2014. Climate change and management. Academy Management Journal, 57(3) 615–623
- KPMG. 2020. Towards net zero: How the world's largest companies report on climate risk and net zero transition
- Krueger, P., Z. Sautner, L. T. Starks. 2020. The importance of climate risks for institutional investors. Review of Financial Studies, 33(3) 1067–1111
- Lewis, B. W., J. L. Walls, G. W. S. Dowell. 2014. Difference in degrees: CEO characteristics and firm environmental disclosure. Strategic Management Journal, 35(5) 712–722
- Renneboog, L., Ter Horst, J., & Zhang, C. 2008. Socially responsible investments: Institutional aspects, performance, and investor behavior. Journal of Banking & Finance, 32(9), 1723-1742
- Strand, R. 2013. The chief officer of corporate social responsibility: A study of its presence in top management teams. Journal of Business Ethics, 112(4) 721–734
Indicative learning resources - Web based and electronic resources
Web-based and electronic resources:
- ELE – College to provide hyperlink to appropriate pages
Indicative learning resources - Other resources
| Credit value | 30 |
|---|---|
| Module ECTS | 15 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | Yes |
| Origin date | 07/09/22 |
| Last revision date | 19/05/2023 |
