BUS328 Sustainable Financial Investments
Showing course contents for the educational year 2022 - 2023 .
Course responsible: Torun Fretheim
ECTS credits: 5
Faculty: School of Economics and Business
Teaching language: EN
Teaching exam periods:
This course starts in Spring parallel. This course has teaching/evaluation in Spring parallel.
Course frequency: Annually
First time: Study year 2020-2021
Corporate managers frequently make decisions on how to support and maximize the value of the firm. Investment decisions must now also increasingly factor in sustainability considerations for ongoing commercial and societal success. This course will cover key topics and issues at the sustainability/investment nexus through an applied and case-oriented approach.
We will review the concept of sustainability and focus on how the corporate manager can make investments that are sustainable and create economic value over the long term. After all, an investment is only sustainable if it creates value. The term "sustainability-related investments" will refer to investments that are focused on human, social, and environmental factors. We will discuss the main environmental, social and governance (ESG) measurement methodologies and provide insight on how ESG ratings may help investors and managers identify, understand, and measure financially material ESG risks (and opportunities).
The main purpose of the course is to acquire practical business skills, and to be able to perform project valuation and investment analysis keeping the sustainability/investment nexus in mind. Managers mainly view investments in terms of costs, benefits, cash flows, and risks. Building on knowledge about capital budgeting and project analysis we will consider the specific assumptions and factors that should be included in the valuation of sustainability-related investments.
Upon successful completion of the course the student:
- will be able to critically review the specific assumptions and factors that should be included in the valuation of sustainability-related investments
- will have knowledge about project valuation and how sustainability considerations may affect investment decisions
- can identify and analyze relevant and material sustainability considerations
- will be able to perform project valuation and investment analysis keeping sustainability considerations in mind
- can apply theories of sustainable investment on actual projects and investment decisions
- is well conversant with the above-mentioned elements related to knowledge and skills
- is able to apply this insight on practical investment problems
- is able to critically reflect on the ethical considerations that are associated with responsible investment
This course will be module based and consist of approximately 30 hours of organized lectures total, with some lecture free weeks. The classes will consist of a mix of traditional lectures and classes with practical exercises. Students are expected to bring their laptops to class and become familiar with computer software for financial analysis and investments.
Plenary lectures and practical exercises; group assignments; various supporting material in Canvas. The students will get access to Refinitiv Datastream and are expected to use this data base throughout the course.
Will be announced.
BUS220 Finance and Investment or equivalent; BUS322 Financial Investment and Risk Management or equivalent; high level of competence in Excel.
Financial accounting, cost accounting, operation analysis.
Three assignments accepted in order to present oneself for final exam. Accepted assignments are valid for one year.
30 hours home exam (counts 100 % of the total grade): Individual analysis of a given case. A retake exam is not organized in this course.
The course is for students enrolled in the following study programs: Master in Business and Administration, Master in Economics, Master in Industrial Engineering and Management or equivalent. It is also open for single course students with satisfactory competence. Contact student advisors for more information.
Type of course:
4 hours of lectures and problem solving exercises per week, with some lecture free weeks.
An external examiner is involved in reviewing the course design and the tests.
Examination details: Home exam: Letter grades