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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Sustainable Finance (CMSE11499)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityNot available to visiting students
SCQF Credits10 ECTS Credits5
SummaryThe course aims to provide students with the knowledge and understanding of climate change risks and opportunities and their impact on capital markets. Topics covered will include core climate-economic theory and the role of central banks and supervisory authorities, climate change and equity investment opportunities, climate change risk management. Students will come away from the course with an in-depth understanding of the impact of climate risks on asset allocation and the practical skills of portfolio alignment to a low-carbon economy.
Course description Climate change is an environmental, social and financial problem. The financial risks posed by climate change are increasingly focused on corporations, regulators, supervisors and governments. A changing climate will present opportunities too for corporations and investors. The course aims to provide students with the knowledge and understanding of how to quantify the scale of the challenge in terms of the value of assets at risk, the levels of alignment with climate and sustainability goals, and the challenges in integrating climate risk into existing financial supervisory frameworks.

The course also involves a number of guest lectures to discuss cutting-edge developments in sustainable finance. Guest lectures are arranged each year to provide up-to-date content, and may include organisations such as Aberdeen Standard Investments, Moody's or Bank of England.

Outline Content

1. Climate change risks and opportunities
2. Climate change and equity investment
3. Climate change risk management - review of asset allocation
4. Climate change risk management - practical implementation and portfolio alignment
5. Climate change integration in other financial instruments

Student Learning Experience

The course will be taught through weekly lectures, and interactive discussion sessions/workshops.

The course includes a final virtual panel discussion with a number of guest speakers from industry and regulatory institutions. This provides useful real-world insights alongside the more theoretical aspects of the course.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements For students on MSc Carbon Finance or MSc Finance only
Course Delivery Information
Academic year 2020/21, Not available to visiting students (SS1) Quota:  None
Course Start Block 4 (Sem 2)
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 100 ( Lecture Hours 10, Seminar/Tutorial Hours 5, Formative Assessment Hours 10, Summative Assessment Hours 35, Programme Level Learning and Teaching Hours 2, Directed Learning and Independent Learning Hours 38 )
Assessment (Further Info) Written Exam 0 %, Coursework 100 %, Practical Exam 0 %
Additional Information (Assessment) Report (Individual) 50% Assesses LO2-3
Portfolio Alignment Assignment (Individual) 50% Assesses LO1-3
Feedback Formative verbal feedback will be provided to the students each week during lectures, based on the weekly in-class discussions. Feedback will be provided by the Course Lecturers, and also by peers within the class. Feedback will also be given on the assignment.
No Exam Information
Learning Outcomes
On completion of this course, the student will be able to:
  1. Understand the climate-economy link and the associated investment risks and opportunities across different asset classes and financial actors.
  2. Understand and apply key concepts to asset allocation and portfolio analysis using climate and ESG/SDG data using available software such as MS Excel.
  3. Create and communicate coherent and convincing arguments about the financial policies and practices to mitigate the impact of climate change.
Reading List
Additional Information
Graduate Attributes and Skills Knowledge and Understanding

After completing this course, students should have:
- An understanding of the impact of climate-change related risks and opportunities on capital markets.
- An understanding of how to align investments with climate and sustainable goals.

Practice: Applied Knowledge, Skills and Understanding

After completing this course, students should be able to:
- Critically evaluate value of assets at risk.
- Quantify the change in asset allocations due to climate and broader ESG issues.

Cognitive Skills

After completing this course, students should be able to:
- Critically evaluate and synthesize new and complex ideas.
- Offer creative solutions and insights on complex issues.

Communication, ICT, and Numeracy Skills

After completing this course, students should be able to:
- Communicate technical, conceptual and critical information clearly and concisely.
- Apply environmental, social and governance factors to asset allocation.

Autonomy, Accountability and Working with Others

After completing this course, students should be able to:
- Provide and receive peer-feedback.
- Cooperate with others from different professional, educational and cultural backgrounds.
KeywordsNot entered
Course organiserDr Luca Taschini
Course secretaryMs Rhiannon Pilkington
Tel: (0131 6)50 8072
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