SUSTAINABLE FINANCE

Assessment method:

Exam: 60 Min. (6 CP)




Recommended prior knowledge:

Introduction to Finance





Examination requirements:

• Demonstration of a comprehensive understanding of the field of sustainable finance.


• Demonstration of the ability to construct meaningful arguments for and against the consideration of sustainability as a corporate goal within the framework of theoretical considerations.


• Ability to assess important financial concepts such as net present value and shareholder value in the context of sustainability.



• Demonstration of an understanding of various approaches to integrating sustainability into the portfolio section.
  
• Demonstration of an understanding of various models for integrating sustainability into asset pricing.
  
• Ability to analyze sustainable debt financing instruments.
  
• Demonstration of an understanding of the relationship between capital structure decisions and sustainability.

Qualification objectives/skills:

Upon successful completion of the module, students will have acquired the following skills:

• They can provide a well-founded overview of the field of sustainable finance and point out where there are parallels and differences to traditional finance,


• They can understand and critically reflect on theory-based arguments for and against explicitly considering sustainability as a corporate goal.
  
• They can understand, critically reflect on, and apply approaches to integrating sustainability into portfolio selection


• They can understand, critically reflect on, and apply models for market valuation of securities that have been expanded to include the aspect of sustainability, and assess their ability to explain empirical phenomena,


• They understand sustainable debt financing instruments in terms of their possible applications and can analyze them in the context of asymmetric information and incentive effects,


• They can assess theories on the integration of sustainability into capital structure decisions in terms of their practical implications and their ability to explain empirical phenomena.

Lecture Content:

1. Basics: What is sustainable finance?

2. Sustainability as a corporate goal?

3. Integrating sustainability into portfolio selection.

4. Integrating sustainability into asset pricing.

5. Sustainable debt financing.

6. Sustainability and capital structure decisions.