Teaching Methodologies
The classes have a theoretical-practical character, allowing students to actively participate in debates and discussions about real cases that
include ESG practices. These group discussions, in addition to allowing the practical application of knowledge, also promote critical
thinking.
The use of decision support software to simulate models, combined with the knowledge acquired throughout the academic path, especially
in quantitative models applied to finance, will enable access to quantitative data available in databases and their proper treatment. This, in
turn, will stimulate scientific research and enable students to interpret the results of ESG variables in companies’ financial decisions,
considering the different perspectives of stakeholders.
Finally, inviting professionals in the field to share practical experiences and discuss trends in sustainable finance will allow for an
interconnection between market theory and practice.
Learning Results
The objectives of this course aim to prepare students to face the challenges and opportunities in the field of sustainable finance, with a
critical and conscious vision. Specifically, it is intended that students:
1. Understand the principles of sustainability and their importance.
2. Can assess sustainable investments, including ESG criteria.
3. Identify financial risks and green financing.
4. Can create financial models that include sustainability variables, such as environmental impact and social responsibility.
5. Can interpret and prepare sustainability reports, both for potential investors and for the general public.
6. Identify metrics for evaluating impactful investments and how they differ from traditional investments.
7. Be able to discuss ethically and responsibly the current trends in the financial market and what the implications are for the future of green
finance.
8. Develop case studies and simulations of sustainable finance in real situations.
Program
1. Principles of Sustainability
1.1 Definition and Fundamentals
1.2 Importance in Finance
2. Assessment of Sustainable Investments
2.1 ESG criteria
2.2 Assessment Methods
3. Sustainable Risk Analysis
3.1 Environmental and social risks
3.2 Green Financial Instruments
4. Green Finance Models
4.1 Integration of ESG variables into value models
4.2 Data
4.3 Results for various stakeholders
5. Sustainability Reports
5.1 Report structure
5.2 Interpretation and Analysis of Reports from Leading Companies
6. Investment Evaluation Metrics
6.1 Concept and differentiation of impact investments
6.2 Metrics and Impact Assessment
6.3 Impact Reports and Investment Standards-IRIS
7. Ethics and Trends in Sustainable Finance
7.1 Ethical challenges in applying ESG criteria
7.2 Trends and implications of green finance
8. Case Studies and Practical Simulations
8.1 Case study analysis
8.2 Computer Simulations
Internship(s)
NAO
Bibliography
Principal
– Michael Curley (2020). Environmental Finance for the Developing World, 1st edition, Taylor and Francis.
– Thompson S. (2023). Green and sustainable Finance, Kogan Ed;
– Vargas, C. (2024). Sustainable Finance Fundamentals, 1st edition, Routledge.
Outra:
Lee, C., Lu, M., Wang, W., & Cheng, Y. (2024). ESG engagement, country-level political risk and bank liquidity creation. Pacific-Basin
Finance Journal, 83, 102260.
Maaloul, A., et al., (2023). The effect of ESG performance and disclosure on cost of debt: The mediating effect of corporate reputation.
Corporate Reputation Review, 26(1), 1-18.
Peng, E. Y., & Smith III, W. (2024). Politics, integration of ESG in CEO compensation, and firm credit ratings: evidence from the USA.
Studies in Economics and Finance, 41(3), 456-477.
Sun, Y., & Zhu, L. (2024). Political acuity, ESG atmosphere, and corporate performance–––an empirical study based on the acuity
dictionary and annual reports. Journal of Cleaner Production, 141379.