98708 - Sustainable Finance

Learning outcomes

The course provides students with a solid and integrated understanding of sustainable finance and social finance, enabling them to analyze financial models and instruments aimed at environmental, social, and governance factors, as well as to design and evaluate social impact interventions. At the end of the course, students will be able to: - identify and compare the main sustainable finance products and frameworks; - understand and apply social impact assessment models; - structure impact-oriented financial instruments and critically interpret data and evidence from sustainable and social finance markets.

Course contents

- Introduction to the main concepts of Corporate Finance: cash flows, investment criteria, NPV, risk and return, mutual funds

- Socially Responsible Funds

- ESG Rating

- The Governance Factor

- Various methodologies of socially responsible finance:
   - Screening based solely on exclusion criteria
   - "Best in Class" investment selection
   - Integration of ESG factors into financial analysis
   - Engagement
   - Impact investing: Social Impact Bonds, Green Bonds, Crowdfunding

Readings/Bibliography

Lecture notes and supplementary materials will be made available on the course platform, "virtuale.unibo.it".

As attending the course is not mandatory, there is no difference between attending students and not attending students.

Teaching methods

The course content will be presented and discussed in depth during lectures. The lectures will be complemented by a series of dedicated seminars on selected topics.

Assessment methods

Assessment is based on a written exam.

The exam is composed of 15 Multiple Choice Questions and 2 open questions. The correct answer to a Multiple Choice Question gives 1 point. There is no penalty for the wrong answer and there is only one correct answer. Each open question has a value of up to 8 points. The exam lasts 60 minutes.

The module Finanza Sostenibile is part of the integrated course Finanza per l'economia sociale. The final grade for the integrated course will be calculated as the weighted average of the grade obtained in the Finanza Sostenibile module (50%) and the grade obtained in the Finanza sociale e valutazione d'impatto module (50%).

The grading scale is as follows:

- 18–23: sufficient knowledge and analytical skills covering a limited range of topics addressed in the course.

- 24–27: adequate knowledge and analytical skills, although with some limitations; good operational skills, albeit not particularly well developed.

- 28–30: very good knowledge of most topics covered in the course; strong operational and critical thinking skills.

- 30 cum laude: excellent and comprehensive knowledge of the topics covered in the course; outstanding critical analysis and ability to make connections across topics.

Students are not allowed to use books, notes, or other course materials during the examination. A list of the most important formulas will be provided as part of the examination paper.

The course is taught during the second semester. The first exam call will be set at the end of March/at the beginning of April and the second in June. The third and the fourth call will be set in September and in February respectively.

The use of artificial intelligence (AI) is strictly prohibited during assessments. Any use of AI will be considered a violation of academic integrity.

Teaching tools

Teaching materials and tools include lecture slides, a projector, and the blackboard.

Office hours

See the website of Barbara Petracci