Singapore University of Social Sciences

ESG Investing and Sustainable Finance

ESG Investing and Sustainable Finance (ESG513)

Synopsis

This course ESG513 ESG Investing and Sustainable Finance examines investing and financing from the perspectives of asset managers, banks, and business enterprises. Students will be introduced to the different ways that environmental, social, and corporate governance issues can be incorporated into investment analysis and decision-making processes for asset managers, leading to the construction of an ESG-integrated portfolio. Students will also learn about climate stress testing to quantify the value at risk for a bank’s loan assets and the channels through which climatebased value destruction can occur. cover the major taxonomies that help to classify activities so that funds can be channelled to the right efforts. Students will also study the features of the different types of sustainable financing instruments and the key principles and standards on which they are based, so that they can recommend suitable sustainable financing instruments to business enterprises to catalyse the transition to green by funding enabling activities.

Level: 5
Credit Units: 5
Presentation Pattern: Every July

Topics

  • Key sustainable investment initiatives
  • Sustainable asset class universe
  • Sustainable investment approaches and ESG integration
  • Impact investing
  • ESG benchmarking and sustainability-related investment performance
  • Taxonomy and greenwashing
  • Climate stress-testing and stranded assets
  • Types of sustainable financing instruments
  • Transition finance
  • Principles and standards for sustainable lending instruments
  • Green fintech
  • Environmental risk management guidelines

Learning Outcome

  • Assess different approaches for integrating sustainability considerations into the portfolio management process
  • Evaluate how the risk-return dynamic of portfolio optimisation is impacted by ESG investing
  • Compare the different principles and frameworks for evaluating the impact of sustainable financing instruments
  • Appraise the extent of potential impact of climate-related risks on banks
  • Propose a suitable portfolio for an investor, integrating sustainability factors
  • Recommend suitable structures and sustainable targets and metrics to issuers of sustainable financing instruments.
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