F1ES 4520 - Finance and Nature.

This course will consist of twelve 2h sessions to explore how “Finance x Nature” translates in practice. Starting from basic concepts on sustainable finance, we will discuss the roles and mandates of difference types of financial institutions, what nature-related risks, dependencies and impacts mean for the financial sector; how, concretely, the concepts of “greening finance and financing green” translate for FIs; how financial institutions can measure their nature-related risks and impacts; what synergies can be used between climate, nature, and other sustainability action to generate impact and accelerate the ecological transition.

Designed for non-financial specialists, this course will provide students with an understanding of the policy, regulatory, strategic and operational implications of nature for financial institutions. The implications of today’s geopolitical and economic context will not be ignored – rather, the course will serve to collectively reflect upon the achievements, challenges and opportunities associated with elevating nature in public financial policies and investment strategies.

Learning Outcomes

• Understanding sustainable finance and what this means for society and the economy
• Understanding the concepts of nature-related risks, dependencies, impacts and opportunities for businesses and financial institutions
• Making sense of sustainable finance for nature and what this means, concretely, for the real economy
• Awareness of the main standards and initiatives related to finance and nature, and their purpose
• Understanding of key measurement approaches for nature-related risks and impacts, at operational and entity-wide level.

Professional Skills

• Integrating nature within policy dialogue and development
• Developing a vision for how financial institutions can integrate nature within their financing and investment strategies
• Relating nature conservation and restoration objectives to other objectives and imperatives, including business development, risk management, climate change adaptation and mitigation, as well as other environmental, social and governance aspects.

Students are expected to have an understanding of environmental science and the various dimensions of environmental and social impacts of business and industrial activities. Awareness of issues surrounding climate change adaptation and mitigation will also be useful, albeit not a strict prerequisite.

Pedagogical Format

Feedback on individual assignments will be provided by email, with possibility given to student to solicit a conversation if need be.

Feedback on group assignments will be provided to group by email (also with possibility of live exchange).

Assessment:

One keynote presentation on a specific topic related to nature and finance (cf Course outline for envisaged topics) – group work (2 to 3 students) – 40%

One personal project – (written submission): Present a nature strategy for your financial institution, including a benchmark with other existing FIs (sample / archetypes of financial institution to be provided nearer the date) – 50%

Individual participation to class 10%

Course Workload:

• Attendance: 2 hours a week / 24 hours a semester
• Reading and Preparation for Class: 4 hours a week / 48 hours a semester
• Research and Preparation for Group Work: 4 hours a week / 48 hours a semester
• Research and Writing for Individual Assessments: 30 hours a semester