ADVANCED INSTRUMENTS FOR SUSTAINABLE FINANCE AND IMPACT FINANCING-1

This course is a compulsory 12-ECTS course that describes and analyzes the main financial instruments for sustainable finance and impact investing.
In particular, the first part of this course covers an overview of financial instruments and investment strategies. The second part of the course focuses on Social, Impact, Green, Transition, and Sustainable financial instruments and existing methods to incorporate sustainability into investment and financial decision-making.

The instructional goal of the 12-ECTS course is to acquire the knowledge and competencies to understand, manage and evaluate traditional financial instruments as well as provide an introduction to sustainable financing and investing and the quantitative models that allow for evaluation of them.

Students are expected to know the basic elements of Financial Mathematics, Calculus, and Statistics with a Bachelor's degree in Economics level.

1. Introduction to derivatives and markets in which they are traded: Forwards, futures, options, and swaps.
2. Fixed-income markets and types of fixed-income securities.
3. ESG-driven investment
4. Climate-driven investment (decarbonization of a portfolio; green financial assets)
5. Portfolio performance evaluation (traditional and sustainability-corrected measures)
6. Green bonds and sustainability-linked loans.
7. Impact Financing.

1. Hull, J.: Options, Futures, and Other Derivatives, Pearson-Prentice Hall, 11e (global ed.)
Chapters: 1,(2),(3),(4),5,(7),(10),(11),(12),13,(15),(19)

2. Staub-Bisang, M.: Sustainable Investing for Institutional Investors: Risks, Regulations and Strategies, John Wiley & Sons, 2012, Chapters:1,2,(4),5,8

3. Discussion material made available in Moodle and used in class

*( ) only partially covered

Further readings: (optional)
Schoenmaker, D., & Schramade, W. (2018). Principles of sustainable finance. Oxford University Press.
Fisher, P. (Ed.). (2020), Making the Financial System Sustainable. Cambridge: Cambridge University Press.
Impact Investing: Killing Two Birds with One Stone? Financial Analysts Journal, 76(4), 40 -52 (2020)

Assessment consists of a written exam of 90 minutes. The exam consists of 6 questions (a mix of exercises, multiple-choice items, and open questions). The questions assess students’ knowledge and understanding of the topics included in the program and their ability to apply the theoretical framework to real cases.
Alternatively, taking 2 partial exams + handing in 2 case studies is possible.
A final mark of at least 18/30 is needed to pass the exam.
The exam is closed-book, that is the use of books, notes and electronic devices (except for a calculator and a list of max 10 formulas) is not allowed during the examination.

Further details and a Mock exam are available in the Moodle webpage of the course.

Teachers’ frontal lectures and discussion of case studies

English

Students are required to register for the related course web page of the university e-learning platform moodle.unive.it.
Additional information, updates, and further material on the course will be provided on the web page of the course in moodle.

written

This subject deals with topics related to the macro-area "Human capital, health, education" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development