OVERVIEW

After the global financial crisis, the attention on sustainability in financial markets has grown among financial regulators, researchers, and investors worldwide. As a consequence, sustainable finance became one of the most important topics in the business industry, which rapidly recognized its importance to achieve long-term value creation for firms and stakeholders. This course is aimed at providing useful tools to understand sustainable finance dynamics, impacts, and developments for financial markets and institutions, by combining a theoretical and practical approach for students.

AIMS AND CONTENT

LEARNING OUTCOMES

The present program aims to investigate the role that financial system can play in addressing economic systems towards a higher degree of climate (and not only climate) sustainability. Using theoretical model, case studies and experts’ contribution it wants to develop the topics labeled as sustainable finance. More in details, moving from the normative framework developed by the “EU sustainable finance action plan” this program will deal with the methods and instruments and useful to guide capital flows towards sustainable investments ; the metrics and process necessary to integrate sustainability factors into risk management and finally the policy necessary to enhance sustainability transparency ( for example EU Taxonomy) and to redirect corporate governance towards stakeholder capitalism systems

AIMS AND LEARNING OUTCOMES

The course on Sustainabel Finance provides training combining economic, financial and managerial theories with the recent development on the topic. Particular emphasis is given to the acquisition of practical tools to integrate environmental and social information within the classical firms' financial analysis process evaluation. 

The course is taught in English and will cover the following topics:

1) Corporate finance and banking 
2) Financial markets and institutions
3) Fixed income instruments
4) Financial portfolio analysis
5) Environmental, Social, and Governance issues
6) Financial regulation

PREREQUISITES

Financial markets and institutions, corporate finance, statistics (entry level).

However, based on the class composition, it will be possible to adapt the program trying to fill the gap among students.

TEACHING METHODS

Frontal lessons, case studies,  team working groups

SYLLABUS/CONTENT

Total: 48 hours, 6 cfu, 24 lessons.

1. Course presentation, exam explanation for attendants and non-attendants’ students and briefing about Sustainable finance, trend, and evolution.
2. Measuring sustainability in financial markets, ESG rating and its problems.
3. How ESG rating affects financial performances
4. Sustainability regulation world-wide: The European, BRICS and Paris Agreement cases.
5. Social Impact Bond and Green Bond: how they work.
6. Social Impact bond: cases and team working (+ 10% final score)
7. Creating a Social Impact Bond: Team working
8. ESG index and ESG funds
9. Practical section 1: Analyses of ESG profile of a firm by using Yahoo finance and Sustainalitycs.
10. Practical section 2:  Risk and return calculation, financial and non-financial performance analysis (+ 10%)
11. Climate finance: state of the art and recent development.
12. Expert meeting 1
13. Sustainable finance and Energy sector: a complicated relationship
14. Expert meeting 2
15. First part of exam (50 %) for attending students

Team working phase

1. Lesson on Excel for finance commands
2. Team working presentation
3. Work in class
4. Work in class
5. First phase presentation
6. Rebalancing phase presentation
7. Work in class
8. Work in class
9. Project discussion

RECOMMENDED READING/BIBLIOGRAPHY

https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_en

LIANG, H. and RENNEBOOG, L. (2017), On the Foundations of Corporate Social Responsibility. The Journal of Finance, 72: 853-910. https://doi.org/10.1111/jofi.12487

Grow the Pie, how great companies deliver both purpose and profit. Alex Edmans.

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

The first lesson will be the 21 of september 2023

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

For attending students : written exam composed by multiple choice questions and open-ended questions (50%) + 50% team working project.

For non-attending students : written exam composed by multiple choice questions and open-ended questions (100%)

ASSESSMENT METHODS

For attending students (valid until march 2024): Class material (available on aulaweb) + team working

For non-attending students: Class material + additional readings (available on aulaweb)"