Course content

Overview

This course provides insights on how finance can facilitate sustainability transition in an economy. This course reviews evidence on how to incorporate environmental, social and governance (ESG) factors when making financial decisions to support a sustainable business.

Indicative content

• Explain the link between sustainability challenges and finance.
• Understand the role played by the government, policy and technology uncertainty, financial markets and financial system in firms’ efforts to address sustainability transition challenge.
• Explain how external and internal governance mechanisms steer corporate behaviour.
• Explain how markets may reinforce short-termism.
• Discuss pros and cons of companies connecting sustainability to their business undertakings.
• Discuss the implications of sustainability performance on corporate financial performance.
• Appreciate the relevance of integrated reporting.

Learning outcome

Students are expected to:

Knowledge

• identify the ESG dimensions of financial decisions,
• critically review the implications of sustainable finance, and
• appreciate risks and opportunities associated with sustainability transition.

Skills

• discuss sustainability challenges faced by the corporate and financial sector, and
• investigate issues in sustainable finance through planning and data analyses.

General competence

• appreciate the challenges and opportunities associated with sustainable finance,
• undertake an investigation on a topic in sustainable finance and communicate through oral and written presentations, and
• use STATA to conduct analyses and write simple program.

Learning methods and activities

Learning methods and activities

Lectures, presentations, group work and supervision

Compulsory assignments

• Group Assignment

Specific conditions

Recommended previous knowledge

Recommended previous knowledge

Students are expected to have basic knowledge in finance and STATA.

Course materials

Course materials

The reading list will be made available at the start of the semester.