Durée
Ethics and Sustainability in Finance : 18h Th
Sustainable Business Models : a Serious Game : 12h Th
Nombre de crédits
Enseignant
Ethics and Sustainability in Finance : Patrick Schwarz
Sustainable Business Models : a Serious Game : Virginie Xhauflair
Coordinateur(s)
Langue(s) de l'unité d'enseignement
Langue anglaise
Organisation et évaluation
Enseignement au deuxième quadrimestre
Horaire
Unités d'enseignement prérequises et corequises
Les unités prérequises ou corequises sont présentées au sein de chaque programme
Contenus de l'unité d'enseignement
Ethics and Sustainability in Finance
This course is part of the new competency development pathway in sustainability organized by HEC Liège. It is integrated with the course "Sustainable Business Models: A Serious Game.
The course structure follows partially the "Handbook of Sustainable Finance" (2024), by Thierry Roncalli (henceforth HoSF). The exact course content is subject to changes as sustainable finance is one of the most dynamic and rapidly evolving fields in finance.
The goal of this course is to provide the students with an understanding of the potential contribution of Sustainable Finance to achieving the Sustainable Development Goals and the goals of the Paris Agreement on Climate Change. Students will understand the consequences of financial decisions from an environmental and social perspective.
Detailed course plan:
A - What is sustainable finance?
1. Definition of finance and its functions
2. Definition and history of sustainable finance
3. Motivation: Why do we need sustainable finance?
Reading: HoSF Ch 1. Introduction.
B - Role of private and institutional investors
1. Motivation for sustainable investments & the attitude-behavior gap
2. Sustainable investment strategies - Impact Investing, Active ownership & ESG voting policy
Readings:
Amel-Zadeh, A., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87-103.
Bauer, R., Ruof, T., & Smeets, P. (2021). Get real! Individuals prefer more sustainable investments. Review of Financial Studies, 34(8), 3976-4043.
Hartzmark, S. M., & Sussman, A. B. (2019). Do investors value sustainability? A natural experiment examining ranking and fund flows. Journal of Finance, 74(6), 2789-2837.
HoSF Ch 5. Impact Investing
HoSF Ch 6. Engagement & Voting Policy.
C - Sustainable financial products
1. Banks
2. ESG mutual funds
3. Green and social bonds
4. Sustainable alternative assets
Reading: HoSF Ch 4. Sustainable Financial Products.
D - Sustainability ratings or the need for relevant information
1. Sustainable Finance Disclosure Regulation (SFDR) & Corporate Sustainability Reporting Directive (CSRD)
2. Rating agencies
3. ESG ratings, SDG ratings & the role of data vendors
Readings:
Berg, F., J. Kölbel, and R. Rigobon (2022). Aggregate confusion: The divergence of esg ratings. Review of Finance, 26(6), 1315-1344.
Dimson, E., Marsh, P., & Staunton, M. (2020). Divergent ESG ratings. Journal of Portfolio Management, 47(1), 75-87.
HoSF Ch 2. ESG Scoring.
E - Impact of ESG investing of asset prices and portfolio returns
1. Theoretical models
2. Empirical results
3. Examining research in the field of sustainable finance - a case of sin stocks
Readings:
Boustanifar, H. & Schwarz, P. (2024). Measuring Business Social Irresponsibility: The Case of Sin Stocks. Working Paper. Available at SSRN.
HoSF Ch 3. Impact og ESG Investing on Asset Prices.
H - Special topics
based on guest lectures (specific material, attendance is compulsory)
Sustainable Business Models : a Serious Game
The course is taught in English.
Acquis d'apprentissage (objectifs d'apprentissage) de l'unité d'enseignement
Ethics and Sustainability in Finance
At the end of this course students will be able to:
- Understand, explain, and synthesize the planet's social and environmental challenges;
- Understand the role of Finance to achieve the UN sustainable development goals;
- Explain the principles for responsible investment and the various sustainable financial products;
- Understand, explain, and synthesize the sustainability challenges to corporates;
- Understand how ESG scores are built and discuss them critically;
- Be able to research and understand a scientific article related to sustainable finance.
Specific skills and competences trained during this course.
At the end of this course students will have:
- Developed their ability to speak English;
- Developed team work abilities;
- Strengthened their capacity for creative conception of solutions;
- Strengthened their professional capacity for oral communication.
Sustainable Business Models : a Serious Game
The course is taught in English.
Savoirs et compétences prérequis
Ethics and Sustainability in Finance
Prerequistes are:
- Fundamentals in finance (notion of arbitrage, net present values, financial markets) are a good prerequisite.
A good level of English is also required.
Sustainable Business Models : a Serious Game
The course is taught in English.
Activités d'apprentissage prévues et méthodes d'enseignement
Ethics and Sustainability in Finance
The main course consists of a series of lectures (5 sessions of 3 hours each). The lecture is a mixture of theoretical concepts, illustrative examples, exercises and open discussions on the various concepts thaught. The lecture is complemented by an exercise (1 session of 3 hours) in which real-life applications of sustainable finance in the investment process are explored in depth. Students are expected to prepare for the lectures and tutorials in order to actively participate in class.
Sustainable Business Models : a Serious Game
The course is taught in English.
Mode d'enseignement (présentiel, à distance, hybride)
Ethics and Sustainability in Finance
Cours donné exclusivement en présentiel
Informations complémentaires:
see above
Sustainable Business Models : a Serious Game
Combinaison d'activités d'apprentissage en présentiel et en distanciel
Supports de cours, lectures obligatoires ou recommandées
Ethics and Sustainability in Finance
Plate-forme(s) utilisée(s) pour les supports de cours :
- LOL@
- Microsoft Teams
Informations complémentaires:
The required textbook that will be predominately used throughout the course is:
- Roncalli, T. (2024). Handbook of Sustainable Finance.
Recommended books are:
- Schoenmaker, D., & Schramade, W. (2018). Principles of sustainable finance. Oxford University Press.
Recommended scientific articles are:
- Berg, F., J. Kölbel, and R. Rigobon (2022). Aggregate confusion: The divergence of esg ratings. Review of Finance, 26(6), 1315-1344.
- Dimson, E., Marsh, P., & Staunton, M. (2020). Divergent ESG ratings. Journal of Portfolio Management, 47(1), 75-87.
- Amel-Zadeh, A., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87-103.
- Bauer, R., Ruof, T., & Smeets, P. (2021). Get real! Individuals prefer more sustainable investments. Review of Financial Studies, 34(8), 3976-4043.
- Hartzmark, S. M., & Sussman, A. B. (2019). Do investors value sustainability? A natural experiment examining ranking and fund flows. Journal of Finance, 74(6), 2789-2837.
- Boustanifar, H. & Schwarz, P. (2024). Measuring Business Social Irresponsibility: The Case of Sin Stocks. Working Paper. Available at SSRN.
The books and articles will be complemented by a slide deck.
Modalités d'évaluation et critères
Ethics and Sustainability in Finance
Examen(s) en session
Toutes sessions confondues
- En présentiel
évaluation écrite ( QCM, questions ouvertes )
Informations complémentaires:
As this is a new course, which is integrated with the course "Sustainable Business Models: A Serious Game" detailed information regarding the evaluation process and criteria will be provided in due course.
Sustainable Business Models : a Serious Game
Examen(s) en session
Toutes sessions confondues
- En distanciel
évaluation écrite
Evaluation continue
Autre : évaluation par les pairs
Informations complémentaires:
The course is taught in English.
Stage(s)
Ethics and Sustainability in Finance
none
Remarques organisationnelles et modifications principales apportées au cours
Ethics and Sustainability in Finance
Attendance to the lectures and tutorials is not required, however, it is strongly recommended. Part of the exam questions may be specifically based on the oral communication/presentation of the lectures or the tutorials. Attendance to the invited guest lectures is compulsory.
Sustainable Business Models : a Serious Game
The course is taught in English.
Contacts
Ethics and Sustainability in Finance
Prof. Dr. Patrick Schwarz
email : patrick.schwarz[at]uliege.be
Teaching assistant: TBA
Association d'un ou plusieurs MOOCs
Ethics and Sustainability in Finance
Aucun MOOC n'est associé à ce cours.