FOR16 Sustainable investments
Autumn 2022Spring 2023
Corporate managers frequently make decisions on how to support and maximize the value of the firm. Financial decisions must now also increasingly factor in sustainability considerations for ongoing commercial and societal success. This course will cover key topics and issues at the sustainability/investment nexus through an applied and case-oriented approach.
We will review the concept of sustainability and focus on how the corporate manager can make investments that are sustainable and create economic value over the long term. After all, an investment is only sustainable if it creates value. The term "sustainability-related investments" will refer to investments that are focused on human, social, and environmental factors. We will discuss the main environmental, social and governance (ESG) measurement methodologies and provide insight on how ESG ratings may help investors identify, understand and measure financially material ESG risks (and opportunities).
The main purpose of the course is to acquire practical business skills, and to be able to perform project valuation and investment analysis keeping the sustainability/investment nexus in mind. Economics and finance professionals mainly view investments in terms of costs, benefits, cash flows, and risks. Building on knowledge about capital budgeting and project analysis we will consider the specific assumptions and factors that needs to be included in the valuation of sustainability-related investments.
Upon successful completion of the course the student:
- will have knowledge about the specific assumptions and factors that needs to be included in the valuation of sustainability-related investments
- will have knowledge about project valuation and how sustainability considerations may affect investment decisions
- can identify and analyze relevant and material sustainability considerations
- will be able to perform project valuation and investment analysis keeping sustainability considerations in mind
- can apply theories of sustainable investment on concrete projects and investment decisions
- is well conversant with the above-mentioned elements related to knowledge and skills
- is able to apply this insight on practical investment problems'
This is a case based course, supported by traditional lectures. The discussion and analysis of the assigned cases are a crucial part of the course structure, and students are expected to participate in class discussions and carry out investment analysis in Excel working in groups. Students have a responsibility to participate actively in the classroom discussion.
The lectures will take place in a normal classroom. However, if that is not possible, lectures will be given via Zoom as this will still allow for an active participation. Some lectures may be provided as recordings, but the case discussions will not be available to watch back.
Credit reduction due to overlap
One group assignment.
Individual 3 day home exam (from day 1, 09:00, to day 3, 14:00).
Bolton, Brian. Sustainable Financial Investments: Maximizing Corporate Profits and Long-term Economic Value Creation. Springer, 2016.
- ECTS Credits
- Teaching language
Spring. Offered Spring 2022.
Adjunct Associate Professor Torun Fretheim, Department of Business and Management Science.