ADVANCED INSTRUMENTS FOR SUSTAINABLE FINANCE AND IMPACT FINANCING-2

This compulsory 12-ECTS course 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 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, their advanced applications for sustainable financing and investing, and the quantitative models for their evaluation.

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)

Learning assessment is conducted through a written exam (90-minute). The exam consists of exercises and questions (a mix of exercises, multiple-choice items, and open questions) to assess the skills acquired in solving problems related to the topics covered in the course and their ability to apply the theoretical framework to real cases. Passing two intermediate tests and handing in two assignments can replace the written exam. During the written exam, the use of books, notes, and electronic aids is not allowed; a calculator and a list of a maximum of 10 formulas are admitted. Through solving the exercises and answering the questions, the student must demonstrate knowledge of the topics covered in the course and the ability to present them formally.
A final mark of at least 18/30 is needed to pass the exam.

With regard to the grading scale (criteria for assigning grades), regardless of attendance:
A. Scores in the range of 18-22 will be assigned in the presence of:
-Sufficient knowledge and ability to understand applied with reference to the program;
-Limited ability to gather and/or interpret data, formulating independent judgments;
-Sufficient communication skills, especially concerning the use of specific language related to the topics covered in the program;

B. Scores in the range of 23-26 will be assigned in the presence of:
-Fair knowledge and ability to understand applied in reference to the program;
-Fair ability to gather and/or interpret data, formulating independent judgments;
-Fair communication skills, especially concerning the use of specific language related to the topics covered in the program;

C. Scores in the range of 27-30 will be assigned in the presence of:
-Good or excellent knowledge and ability to understand applied in reference to the program;
-Good or excellent ability to gather and/or interpret data, formulating independent judgments;
-Fully appropriate communication skills, especially concerning the use of specific language related to the topics covered in the program;

D. Honors will be awarded for excellent knowledge and ability to understand applied to the program, excellent judgment skills, and excellent communication abilities."

A mock-exam and additional information are available in the Moodle page 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