FIN41920

The aim of this module is to provide students with a deep foundational knowledge of the emerging theories and practice of sustainable finance and investment.

The world is changing. Environmental and social issues, from the climate crisis to changing demographics to social inequality, are rising up to the top of the global agenda. As these sustainability issues become increasingly financially relevant to real economy businesses, the financial sector needs to consider its response. At its simplest, Sustainable Finance refers to any form of financial service integrating environmental, social and governance (ESG) criteria into the business or investment decisions for the lasting benefit of both clients and society at large. But what are the drivers, who are the key stakeholders and should sustainability really have anything to do with the financial sector?

We will look at what sustainable finance specifically means across the banking, investment and insurance sectors, using practical examples and case studies to bring this topic to life. We will gain an understanding of how financial institutions obtain ESG information and how they incorporate that information into their financial analysis and decision making. We will study how different policies, regulations and supervisory expectations related to sustainable finance are evolving. As well as covering the theory, the course will be practical and commercially-focussed. The course will be delivered through a combination of lectures, case studies, guest speakers, readings and class led discussion.