This course aims to provide analytical skills and knowledge on both dimensions of sustainable finance, otherwise known as the “double materiality” concept: on one hand financial materiality relying on the integration of sustainability or ESG indicators to expand the scope of risk management to emerging issues such as climate change, inequality, human and natural capital. On the other hand, social and environmental materiality by developing tools and practices to measure the impact of finance on its stakeholders and on its environment.
This twofold objective, embedded in the EU Sustainable Finance regulation agenda, is meant to prevent new financial crisis and to meet the global social and ecological challenges we face. Better assessing the risk profile of assets for both equity and credit valuation implies to access and embed common methods, tools and standards across new KPIs, known as ESG (Environment, Social and Governance). On the impact side, the objective is to develop tools that can mobilize and incentivize financial flows to support the needs of the low carbon economy as well as of the sustainable development goals. Greening the trillions cannot be achieved without building capabilities across the financial system with contribution and innovation from public and private sectors as well as clear policy signal and regulatory incentives.
The objective is to develop analytical skills to familiarize students with the various ways these two pillars of sustainable finance are being addressed by financial institutions (e.g, banks, fund managers, insurers) and supervisors (e.g. ESAs) and their related tools. It divides in 2 parts :
Introduction : beyond financial analysis, the double materiality analytical challenges.
2. ESG valuation, scoring, standards and methodologies.
3. Tools & methods to meeting the Paris Agreement and SDGs targets.
Seminars are made of lectures, exercises, group case studies (South African Equity Boycott, Norwegian Pension Funds policy, Oil stranded Assets, Low Carbon Indices, Green Bonds issuance, etc..). It includes a specific investor's analysis of real assets' sustainability performance.
Julie RAYNAUD,Stephane VOISIN
Séminaire
English
12 seminars of two hours each (24 hours). Credits: 4