ECF 400- Environmental Finance
This course examines the implications of environmental pressures and environmental problems for business strategy and operation. The course covers topics such as environmental and social governance, stakeholder engagement, responsible investing, environmental markets (SOx, NOx, carbon, weather derivatives), investor collaboration on environmental issues, the role of the financial services sector, the role of venture capital, and the over-riding challenge of climate change.
This course examines the implications of environmental pressures (e. g., sustainable development) and environmental problems (e. g., global warming, air pollution, waste disposal) for business strategy and operation. It discusses how companies can adopt better environmental business practices and enhance their triple bottom-line performance through “green” financial tools and services such as: carbon credits, socially responsible investing, risk principles in capital project financing, and consumer products like “green” credit cards. The course will cover topics such as environmental and social governance, stakeholder engagement, environmental markets (SOx,NOx, carbon, weather derivatives) and the over-riding challenge of climate change.
The objectives of this course are to:
- Assess the strategies that companies in various sectors of the economy have identified, to cope with environmental change, both to meet the challenges and to make the most of the opportunities.
- Demonstrate how established practices, procedures and tools from within the mainstream financial market are being adapted to achieve environmental and financial goals.
- Provide a firm understanding of the basic issues at stake in environmental finance and awareness of their current application around the world.
By the end of this course, the student should be able to:
- Explain the rationale behind the use of market mechanisms to combat environmental issues.
- Discuss the definitions, possibilities and limitations of environmental finance as an environmental management strategy.
- Critically analyse the role of ethical investment and evolving regulatory models in encouraging good environmental stewardship in companies.
- Understand how financial markets and instruments are being used to regulate polluting industries, reduce environmental costs, improve environmental performance, raise capital for environmental projects, and manage risks arising from catastrophic natural hazards, climate variation and other environmental change processes.