Module description
What is the module about?
This module addresses the rapidly growing importance of sustainable investment and climate-related risks in today’s global economy. It provides students with a comprehensive understanding of how climate change is reshaping financial markets and influencing investment decisions.
The course focuses on the financing of sustainable projects and examines how climate risks are measured, managed, and priced across major asset classes, including equities, bonds, and real estate. It also covers emerging topics such as biodiversity finance, investor behaviour, and the evolving regulatory landscape.
Drawing on cutting-edge academic research and real-world examples, the module explores the extent to which climate risks are reflected in financial markets. It highlights the mixed and sometimes conflicting evidence in the literature, encouraging students to critically evaluate these findings and understand the drivers of heterogeneous outcomes across different markets and institutional settings.
Who should do this module?
The module will be of interest to students who are interested in sustainbale investment and climate-related business. It will provide you a framework to understand how climate risks are refleted in financial markets and when these risks become salient.
Learning outcomes
1. Critically review and evaluate different findings on sustainable and climate finance research.
2. Analyse and assess sustainable investment opportunities and associated risks using ESG disclosures and other relevant data sources.
3. Develop and recommend strategies for businesses and asset managers that aim to generate impact beyond financial returns.
4. Demonstrate an understanding of the historical development of environmental issues and sustainable investment within economic thought.
Assessment details
30% Midterm
20% Group Presentation
50% Individual Assessment
Teaching pattern
Weekly Lecture
Weekly Tutorial
Suggested reading list
Key reading
Roncalli, T., 2022. Handbook of sustainable finance. Available at Handbook of Sustainable Finance
Edmans, A. and Kacperczyk, M., 2022. Sustainable Finance. Review of Finance, 26(6), pp.1309-1313.
Students are expected to read part of the handbook as well as some papers published on leading journals.