Sustainable Investing (FIN324)

FIN324 Sustainable Investing introduces the principles and practices of integrating environmental, social, and governance (ESG) factors into investment decisions. Students will explore ESG evaluation and disclosure, sustainable financial instruments across asset classes, and approaches such as screening, integration, and impact investing. The course emphasizes sustainable portfolio management, including portfolio construction with ESG considerations, managing ESG-related risks, and evaluating portfolio performance, while also addressing stewardship, regulatory frameworks, and key challenges like greenwashing. This course equips students with product knowledge to design sustainable portfolios and ESG considerations to ensure responsible investment decisions.

• Investing fundamentals and additional considerations for long-term sustainable investing
• ESG Evaluation and Disclosure
• Approaches to Sustainable Investing
• Sustainable Investing in Equity --- products and valuation methods
• Sustainable Investing in Fixed Income and Alternative Assets --- products
• Portfolio construction with Sustainable Considerations
• Managing ESG-related Risks
• Performance and Evaluation of Sustainable Portfolios
• Stewardship: Active vs Passive Sustainable Investing
• Principles, Policies and Regulations
• Challenges and Critiques (e.g., Greenwashing, Transparency, etc.)
• Frontiers and Future of Sustainable Investing

• Examine corporate ESG performance and disclosure practices.
• Appraise the uses of various sustainable financial instruments and regulatory frameworks related to sustainable investing.
• Compare different approaches to sustainable investing, both active and passive, and their practical applications.
• Construct simple investment portfolios incorporating sustainable considerations.
• Implement appropriate methods for identifying and hedging ESG-related risks.
• Apply appropriate methods to measure and report both the financial and sustainable performance of portfolios.