Description
This course will provide an introduction to sustainable finance. Students will learn how to integrate sustainability in portfolio management and in corporate decisions, and understand the instruments to manage climate risk.
This course introduces students to sustainable finance. First, the main challenges for the financial world, as well as the regulatory framework, are discussed. Second, the course provides an overview of ESG metrics (environmental, social, governance) and discusses their use and limitations. Students learn the key measures to assess the performance in active portfolio management. These measures will then be used to assess the performance of sustainable mutual funds and sustainable pension plan investments. Third, students are introduced to other sustainable investments such as green bonds. Finally, the course addresses climate risk management, allowing students to understand the role of insurance, reinsurance and derivative instruments in climate risk management.
Themes covered
Climate change and the main challenges for the financial sector.
The regulatory environment, carbon taxes, and key climate change initiatives.
Introduction to ESG (environmental, social, governance) measures and their interpretation.
The integration of sustainability in the performance evaluation of active portfolio managers.
Comparison of the performance of sustainable investments and traditional investments.
Introduction to the green and social bond markets, and other ESG instruments.
Basic concepts of insurance and reinsurance.
Derivatives and insurance-linked securities (ILS) designed to manage climate risks (weather change, floods).
Important notes
Course in French : FINA 50205
Préalable(s) : OPER 50500(A)(Co)
