ESG Investing & Green Finance

ESG Investing and Green Finance is a finance course recommended for students who want to pursue careers in financial services and gain knowledge and market practice on ESG investing and Sustainable Finance.

The course presents market terminology, practices, usages and impact of ESG factors with the main focus on their materiality. In addition, the course aims that students learn how to assess and integrate ESG issues when conducting stock selection, portfolio construction and engagement with companies.

The course also introduces foundational concepts of climate change, explores the financial risk implications of climate policy and regulatory changes. The course discusses emergent financial sector tools and markets born out of the global response to climate change.

The purpose of this course is to empower students with cutting edge information, tools, applications and solid research on the subject of ESG investing. At the end of the course, students should be able to:

  • Be knowledgeable about the universe of ESG investing

  • Outline key environmental, social and business indicators that can impact financial value

  • Identify global trends and regulations and their impact on financial analysis

  • Analyse ESG, climate themes/indicators across companies and sectors

  • Compare the scope, and coverage of existing ESG reporting standards

  • Be knowledgeable on what constitutes “green” finance, existing taxonomies, and the range of financial products and instruments for financing sustainability and climate projects

  • Identify the pros and cons of doing ESG investing

  • Differentiate different concepts related with ESG investing like: stakeholder capitalism, sustainability, Sustainable Development Goals, Principles for Responsible Investment (PRI), Principles of Responsible banking, the Climate urgency, financial materiality.

  • Understand the importance of the ESG factors for financial investment

  • Identify material ESG factors

  • Assess how the companies address the different ESG factors, in particular weakness and strengths

  • Assess the information disclosed to relate with risks and opportunities of ESG investments

  • To understand the process of collecting ESG data and transform data into ESG ratings

  • To understand the approaches of rating methodologies and their limitations

  • Identify trends in ESG investing market

  • Differentiate the different approaches to ESG investment strategies

  • Implement ESG investment strategies

  • To incorporate ESG in passive indexes

  • To construct ESG index products

  • To understand the implications of the climate benchmark regulation for indexed funds

This course will be taught during the Intensive Week in T2 (January 2 to January 6, 2023).