Module Content

The module begins with defining sustainability and its connection to the United Nations Sustainable Development Goals (UN SDGs), understanding of the three pillars of sustainability (environmental, social, economic), their collective impact on financial systems and business practices, and how corporate sustainability is measured against environmental, social and governance (ESG) considerations. Also, the module introduces the challenges to environmental, social, and economic sustainability and the impact of actions and inactions on the environment, society, and the economy. It highlights further the trend from less prescriptive sustainability guidance towards more codified regulation such as the Corporate Sustainability Reporting Directive (CSRD).  

Then, It gives an introduction to sustainable finance, continues with the ways of how capital can be invested to ensure that the future is sustainable. Furthermore, the module looks at the different approaches and strategies that are suitable for sustainable finance and at the same time appraises risk and return associated with it. Additionally, the roles of international organisations, governments, NGOs, and businesses in maintaining and promoting sustainability is highlighted. The range of financial policy instruments and initiatives and their potential with regard to integrating sustainability into financial policy and supervisory frameworks, including shifting from voluntary sustainability guidance to certified regulation, are then analysed. Finally, the trends and future of sustainable finance along with matters involving disruption and innovation are examined. 

The module will draw on examples and case studies from various countries and different thematic areas including green bond markets, the global governance architecture for sustainable finance, long-term sustainability risk assessment, and the role of central banks and financial supervisory authorities. 

Teaching Methods

The main participation of students is centred on independent learning and preparation of material for group sessions. All of the group sessions provide the opportunity for, and encourage, student input. Theory and practice are examined in relation to problem scenarios discussed at group sessions. The module is structured to facilitate student-centred learning.   

The module will be delivered by means of weekly lectures and seminars. Seminar questions usually will deal with miniature case studies covering the subject matter of the previous lecture. In this way, students will gain experience of the practical applications of the theory of sustainable finance. Students will be expected to prepare the case study prior to the seminar and to be prepared to participate in seminar discussions. 

This strategy is designed to give the students proficiency in the technical and computational aspects which are fundamental to competence in this subject. The coursework element will comprise an extended study and report based on an individual company which will be designed to enable each student to work independently, whilst incorporating consideration of events in the current and previous year. These actions have the goal to develop graduate attributes of planning and implementation, research skills, problem solving, awareness of events affecting financial markets, communication and reflection. 

Assessment Methods

This module is assessed through one Coursework (50%) and one Written examination (50%).