• Amel-Zadeh/Serafeim (2018): Why and how investors use ESG information: Evidence from a Global Survey. Financial Analyst Journal (74), 3, 87-103
• Swiss Sustainable Finance (2017) Handbook on Sustainable Investments. CFA Institute Research Foundation
• Worldbank (2019): State and Trends of Carbon Pricing 2019, https://openknowledge.worldbank.org/handle/10986/31755
• Blitz/Fabozzi (2017): Sin Stocks Revisited: Resolving the Sin Stock Anomaly. Journal of Portfolio Management 44 (1), 105-111
• Friede et al (2015): ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investments (5), 4, 210-233
• Görgen et al. (2019): Carbon Risk. WP Uni Augsburg
• Khan (2019): Corporate Governance, ESG, and Stock Returns around the World. Financial Analyst Journal (75), 4, 103-123
• EU Action Plan for sustainable finance, https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_de
• Matos (2020): ESG and responsible institutional investing around the world. CFA Institute Research Foundation.
• Zerbib (2019): The effect of pro-environmental preferences on bond prices: Evidence from green bonds. Journal of Banking and Finance, 98, pp 39-60.
• IPCC (2018): Special Report: Global Warming of 1.5°C: Summary for Policymakers.
• European Commission (2020): Sustainable Finance - TEG final report on the EU taxonomy
• Fama/French (1993) Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33 (1), 3–56.
• Further selected publications.
After successfully completing this module, students understand the challenges of green finance and how to make private and corporate financial decisions taking into account climate targets and environmental objectives. The students are familiar with the theoretical foundations of green finance and how climate and environmental aspects fit into classic financial frameworks. Students know how climate related decisions can influence firm values. Students know which green financial products exist, critically reflect their climate effectiveness and know how to evaluate their risks and returns.
Students are able to use Excel to analyze green finance related problems. They are able to calculate and interpret statistical measures. Students are able to discuss and critically reflect green finance related topics based on specific articles from academic and practitioner journals.
Students are able to apply the knowledge they have acquired in any area of their studies that deal with financial economics in general as well as environmental economics, climate economics, sustainable business administration, and corporate social responsibility.
Students are able to critically reflect and interpret relationships in the green and climate finance environment. They are able to evaluate how climate related financial decisions affect firm values. Students are able to use quantitative tools to manage financial risks and opportunities resulting from climate change.
• General sustainability frameworks: ESG, SRI, CSR
• Specific climate frameworks: UN SDG, EU's sustainable / green finance
• Why is Green Finance important?
Evaluation of green investment decisions
• Recap: Net present value
• Standard- and green-adjusted discount rates
• Carbon pricing: Cost internalisation
• Promotion of green projects
Approaches of E(SG) implementation
• Impact assessment
Asset Pricing - Should E(SG) risks (and opportunities) be priced?
• Development of E(SG) / green stocks
• Mispricing or systematic risk as drivers of returns?
• Recap: CAPM und Multi-factor models
• Establishing the link to E(SG) / green stocks
• Empirical evidence on the pricing of E(SG) / green stocks
• The sin stock anomaly