Course Syllabus
| Sustainable Finance: The Future of Investment |  |
| Semester & Location: | Fall 2024 - DIS Copenhagen |
| Type & Credits: |
Elective Course - 3 credits |
| Major Disciplines: |
Economics, Finance, Business |
| Prerequisites: |
One course each in microeconomics, macroeconomics, and finance at university level. |
| Faculty Members: |
Daniel Reece, daniel.reece@dis.dk |
| Time & Place: |
Tuesdays 10:05-13:00, Classroom F24-503 |
Description of Course
Finance is often seen as a hindrance to a better world. However, with the flexibility, agility, and proactivity associated with the financial sector, there is also great potential to be a key player in addressing environmental and social challenges. In order to take advantage of this, however, it is necessary to first understand all of the relevant issues involved so that solutions can be developed.
This course will feature high level analysis, discussion, and critical evaluation allowing you to explore the theory, empirical data, and policy to explain the sustainability challenges maintaining ecological systems, enhancing cultural diversity, and improving social well-being and income inequality.
The course has a focus on three main areas:
- Navigating the burgeoning academic theories of sustainable finance and investment, including topics such as active ownership, climate finance, conservation finance, disclosure, divestment, engagement, green bonds, green indices, impact investing, public private partnerships, and the valuation of threatened or "stranded" assets.
- Translating this knowledge into analysis of practical examples and case studies
- The ability to then frame what has been learnt through the semester in a way which is meaningful and serious to the financial professionals, such as asset managers, banks, investment consultants, and ratings agencies, exploring questions around how sustainable financial engagement fits with an organization's broader strategy, and where opportunities for leadership in this sector can be expanded.
More specifically, the course will structured as follows:
Introductory issues: What is ESG and Why Does it Matter?
- Sustainability and the Transition Challenge;
- Financing the Sustainable Development Goals.
Block One: Sustainability Reporting Frameworks, Standards, and Protocols
- Governance and Behaviour
- Coalitions for Sustainable Finance
- Integrated Reporting frameworks
Block Two: Product finance - Along The Spectrum Of Concessionality
- Equity: Investing with an Ownership Stake
- Bonds: Investing without voting power
- Banking: New Forms of Lending
- Real Estate: Green Finance
Learning Objectives
- To develop a thorough understanding of the context behind, and development, of sustainable finance;
- Gain an understanding of the role and interplay between different stakeholders and opportunities for future development;
- To make valid and informed contributions to class discussions based on your personal views and opinions;
- Think creatively, intelligently, and critically with regards to applying sustainable finance products to specific case studies;
- Prepare and deliver a professional, detailed, and qualified project detailing the impact that a focus on a particular facet of sustainable finance could have on a specific financial industry sector.
Faculty
Daniel Karpantschof Reece
Master of Laws (International Taxation, St Thomas University Miami, 2005). Founder and Managing Director of Nordeq Management A/S, a Danish consultancy company providing cross border legal, tax, and accounting services to a multinational client base. Previous: ten years as Managing Director for The Equinor Group of companies. Responsibility for management of offices worldwide and administration of 500+ client entities holding assets with value in excess of EUR 2 bn. With DIS since 2015.
Materials
“Principles of Sustainable Finance”, Dirk Schoenmaker and Willem Schramade, Oxford University Press 2019.
IPCC CLIMATE CHANGE 2023 Synthesis Report
IPCC Sixth Assessment Report - "Climate Change 2022: Impacts, Adaptation and Vulnerability"
"Kate Raworth: Doughnut economics and thriving in balance"
OECD report: ESG financial ecosystem, ratings methodologies, and investment approaches
"The Divide: A brief guide to global inequality and its solutions" (Hickel, 2017)
Norges Bank - Tax transparency.pdf
Impact Bonds, University of Oxford Goverment Outcomes Lab
Impact Chap 4. Impact: Reshaping Capitalism to Drive Real Change by Ronald Cohen, 2020
Additional custom readings, articles and cases based on current research and contemporary events for each class will be added to the DIS Canvas system.
Field Studies
During the course we will visit one of the Danish companies who are leading proponents of sustainable finance in Denmark, such as Nordea Bank, the Green Investment Fund, and the Danish Social Capital Fund, as well as a project actively involved in combatting climate degradation to see first hand the impact that Sustainable Finance projects can have.
Guest Lecturers
Guest lecturers will be a mixture of investment bankers, fund managers, economists and academics working with Sustainable Finance.
Approach to Teaching
Students can expect and experiential, hands-on atmosphere in the classroom. Many classes will be workshop based, either with regards to discussing relevant articles, or participating in case studies based on real world scenarios. It is therefore vital that students are prepared in advance of each class to enable them to participate actively and intelligently in these sessions.
Expectations of the Students
This class requires a high level of motivation and active participation both in class and during the field studies. Attendance is mandatory. To get a good engagement grade the following must be done:
- Active and voluntary participation in class discussions;
- Having prepared properly for every class, i.e. having completed all the required and prepared for entering a discussion in class;
- Being able to address the readings critically during class, thus displaying a good understanding of the subject matter;
- Being analytical and concise in oral interventions, i.e. backing up arguments by facts and references.
Evaluation
Course evaluation will be in the form of:
- Case study assignment - podcast discussion;
- Formal debate in the "Oxford" format of current salient issues in the Sustainable Finance space;
- Final project – combination of individual presentation and written submission;
- Engagement in class, i.e. the participation in class discussions/Q&A’s, active involvement in case studies and interviews, your role in the group assignments, and evidence of notes/reflections on each class and field study.
Participation
The classes require active participation in classes and during the field studies. Attendance is mandatory. To get a good engagement (A-) grade you must evidence:
- Preparation for every class, i.e. required reading and having thought about various issues in advance;
- Being analytical and concise in oral interventions, i.e. backing up arguments by facts and references;
- Being able to collaborate well with your assigned team and delivering group presentations.
To achieve an "A" grade for participation you will need to contribute regularly to discussions in class and/or, at least every second class, post a reflection on class in the "Discussions" tab on Canvas. There will be a separate reflection thread for each class.
Grading
| Assignment |
Percent |
| Engagement |
20% |
|
Debate |
25% |
|
Sustainable Finance Podcast project |
25% |
|
Final written project |
30% |
Note on Use of Electronic Devices in the Classroom:
The use of electronic devices such as laptop computers, mobile phones, tablet devices etc. is discouraged. Unless I specifically request otherwise, the only acceptable use of such devices is to write notes on classroom material. Students found using electronic devices for other purposes will receive an F for their participation grade.
Academic Regulations
Please make sure to read the Academic Regulations on the DIS website. There you will find regulations on:
AI
Although AI tools are valuable, they should support human creativity and critical thinking, not replace them. Therefore, the use of AI tools like ChatGPT are permitted within defined contexts if you include proper attribution. Usage outside of the predefined contexts and without attribution will be considered a breach of our Academic Honesty Policy.
DIS - Study Abroad in Scandinavia - www.DISabroad.org
Course Summary:
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