Sumários
Lecture 7: Module 3 Part I
10 Novembro 2025, 15:00 • HAOXU WANG
This session began a new module for the course, “Sustainable Investing,” focusing on the fundamentals of the field. The lecture started with the definition of sustainable investments and the spectrum of investing. It then examined the growth of sustainable investment assets, highlighting trends in UNPRI signatories and fund flows. Following this, three major types of sustainable investment strategies—engagement, divestment, and ESG integration—were analyzed both conceptually and empirically. In the discussion of ESG integration, the ESG-efficient frontier and ESG-adjusted CAPM were introduced. The lecture also reviewed research findings on how ESG factors affect firms’ expected returns and risks. The session concluded with an introduction of the EU Sustainable Finance Disclosure Regulation (SFDR).
Lecture 6: Module 2 Part II
5 Novembro 2025, 15:00 • HAOXU WANG
The lecture mainly focused on two topics: sustainability (ESG) rating and greenwashing. The Carbon Disclosure Project (CDP) and the Science Based Targets initiative (SBTi) were also discussed as extensions of the previous topic on sustainability reporting. Regarding ESG rating, the lecture covered its advantages and limitations, along with the rating methodologies used by major agencies such as MSCI, Sustainalytics, S&P Global, and Refinitiv (LSEG). The divergence phenomenon documented in the literature was highlighted, including its implications for asset pricing. For the greenwashing topic, the lecture addressed its definition, associated harms, and the evolution of regulatory efforts to combat greenwashing at both the investor and consumer levels, with particular emphasis on developments within the EU (e.g., EU Taxonomy and Green Claims Directive (proposal)).
Lecture 5: Module 2 Part I
3 Novembro 2025, 15:00 • HAOXU WANG
This lecture covered the topic of “Sustainability Reporting”. It began with an introduction to traditional financial reporting, highlighting its limitations in several aspects, including its inability to reflect forward-looking corporate sustainability information. The discussion then moved to sustainability-related financial reporting, which focuses on the disclosure of corporate sustainability information that is financially material. The IFRS S1 and S2 standards, along with the TCFD recommendations, were examined in this context.
The session then addressed impact reporting, introducing the GRI standards and several voluntary reporting frameworks. Following this, the lecture explored EU Corporate Sustainability Reporting Directive (CSRD) and the accompanying European Sustainability Reporting Standards (ESRS), in detail. The concept of double materiality and the interrelationships between ESRS and other reporting standards (e.g., IFRS and GRI) were also analysed.
The lecture concluded with a mini case study on Schneider Electric, where actual sustainability reports and data were reviewed to illustrate how the discussed frameworks are applied in practice.
Lecture 4: Module 1 Part IV
29 Outubro 2025, 15:00 • HAOXU WANG
The lecture examined the sustainability-integrated corporate capital budgeting process. The key distinction from the previous topic lies in the more detailed treatment of how to calculate financial cash flows alongside environmental and social value flows. In earlier sessions, these flows were taken as given, whereas this lecture focused on how they can be derived in practice. The discussion covered several practical issues in forecasting project cash flows, including the concepts of incremental cash flows and opportunity costs. A more critical perspective was also adopted when evaluating a project’s social and environmental effects, recognizing that a project may generate both societal benefits and costs. The analysis was supported by a case study. In addition, while social and environmental values can sometimes be translated into financial values via internalization, the internalization process itself can be complex and uncertain.
Lecture 3: Module 1 Part I and II
27 Outubro 2025, 15:00 • HAOXU WANG
The lecture covered two main topics: (1) calculating social and environmental values for corporate projects and (2) integrated corporate investment decision rules. The first part focused on identifying, quantifying, and monetising material social and environmental factors, as well as applying the estimated values within a model analogous to the discounted cash flow (DCF) framework. The second part examined how social and environmental values can be incorporated into corporate investment decision-making, particularly in comparing different investment projects after accounting for their social and environmental impacts. The lecture concluded with an introduction to a method for incorporating the effects of internalisation into the evaluation process.