KEMI 2EN21 - Sustainable finance : concepts, instruments, and practices

This course provides an introduction to sustainable finance and its role in addressing environmental and social challenges. It explores how financial institutions, investors and corporations integrate sustainability considerations into decision-making and risk management. Students will examine the main regulatory frameworks shaping

sustainable finance in Europe, including ESG reporting, sustainability disclosures and the EU Taxonomy. The course also covers sustainable financial instruments, ESG

analysis, climate transition plans, and responsible investment strategies. Through case studies and practical exercises, students will develop a critical understanding of the opportunities, limitations and controversies surrounding sustainable finance and its contribution to the transition towards a more sustainable economy.

No prerequisite.

By the end of the course, students will be able to:

• Understand the key concepts and objectives of sustainable finance;
• Identify the main actors and regulatory frameworks shaping sustainable finance;
• Analyse ESG information and sustainability reporting disclosures;
• Assess the strengths and limitations of sustainable financial instruments;
• Compare different sustainable investment strategies;
• Evaluate the role of financial markets in supporting climate and sustainability transitions.

The teacher uses AI (ChatGPT) to translate texts and help her prepare case studies.

• Class participation (20%): active participation in class discussions, engagement with assigned readings, and contribution to collective debates and case studies.
• Group presentation (40%): students will prepare and deliver an oral presentation on a sustainable finance topic, critically analysing a regulatory framework, financial instrument, company strategy, or contemporary policy debate.
• Final written assignment (40%): students will submit an individual written paper analysing a sustainable finance issue covered during the course. The assignment should demonstrate the ability to apply course concepts, critically assess existing approaches, and formulate well-supported arguments.