Sustainable Finance (2235.YR.015782.1)

General information

Type:	OPT	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Isaac Re Delgado	Economía, Finanzas y Contabilidad	ENG

Corporate Finance.

MIM students interested in taking this course must have obtained a grade equal or above 8 to attend this course.

Corporate Finance
Asset Pricing
Financial Risks

Equally distributed along the course, with more focus on class participation, application of concepts on the final assignment with case analysis and debates in class and a continuous work at home to review content and integrate ideas from class into the company ESG evaluation assignment.

Through this course, students will understand the main topics of the current debates about ESG in its categorization, evaluation and reporting.

The course offers a holistic view covering different topics such as:
- Current regulation,
- Data and reporting best practices,
- Latest empirical and methodological publications
- ESG factors and traditional financial risks
- ESG policies and prospective evolution of international standards

Understanding the main concepts of sustainable finance
- Adopting a critical thinking perspective when facing ESG data and methodologies
- Get a clear view on international standards and regulation
- Be capable of fulfilling the evaluation of the sustainable performance of a company

1. Introduction to the Process of Climate Change and the Broader Sustainability Challenges a. Introduction: Sustainability and Finance b. ESG Motivations c. Financial ESG industry d. Greenwashing: Understanding the concept with real examples

2. Sustainable Concepts and methodologies a. Environmental investing Climate Water Circular Economy Pollution Biodiversity b. Social investing How to categorize social topics The challenge of measuring the impact c. International standards and evaluation methodologies TCFD GRI SDGs Others

3. Sustainable Banking: Double materialy: Risks + Investments a. Transversal Sustainable finance concepts Double materiality: Concept and application Financial Risks and ESG Investments Direct contribution and enabling projects DNSH or Adverse Impacts Carbon Accounting: The value chain and the three meauserement scopes b. Financial Risk perspective: ESG Factors contributing to traditional financial risks Market Risk Credit Risk Operational Risk Reputational Risk c.Investments perspective: ESG project categorization Exclusion of holding from investment universe Norms-based screening Best-in-class investment selection Sustainability themed investment Engagement and voting on sustainability matters Impact investing d.Sustainable Finance: Product Implementation Equity Sustainable bonds: Corporate and Sovereign Funds Derivatives

4. ESG Metrics and Data a. ESG Metrics, scores, data and current challenges b. Main data providers c. Empirical results

Class participation (25%)
Students are graded by their comments, questions and answers in class. The objective is to foster debate in class about theoretical topics, market evolution, specific company examples and market practises so the group could apply concepts into real-world examples.
Exam (25%)
A multiple choice exam covering most of the topics of the course.
Assignment
The goal of the work would be to form a team of consultants facing a client petition to assess the sustainability of a real company and to provide a policy recommendation.
The assignment is expected to deliver a presentation to a company board that would present questions. There will be interim revisions in class where the students will be expected to connect theory with real cases.

Group	Teacher	Department
Year 1	Isaac Re Delgado	Economía, Finanzas y Contabilidad