| CODE | ISR5039 | ||||||||
| TITLE | Sustainable Finance Regulations | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 5 | ||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||
| DESCRIPTION | This unit, "Sustainable Finance Regulations," is designed to provide an in-depth understanding of key sustainable finance concepts and practices, with a special focus on regulations and instruments like the Sustainable Finance Disclosure Regulation (SFDR), Corporate Sustainability Reporting Directive (CSRD), Green Bonds, the EU Taxonomy, and Green Ratings Regulation. Incorporating a mix of theoretical knowledge and practical case studies, the unit will explore these concepts from a Maltese and international context. Case studies will be studied to illustrate the real-world application of sustainable finance principles, aiding students to understand the intricate balance between regulatory compliance and practical financial sustainability strategies. Environmental, Social and Corporate Governance (ESG) has emerged as one of the most prevalent and ubiquitous business concepts in recent years, spurred on by public policy coupled with rising societal demands for greater corporate accountability. This study unit will delve into the most salient issues related to ESG and Sustainable Financial regulations today, together with the emerging opportunities and risks presented by such considerations. The unit will also discuss the relevant regulatory requirements and standards related to ESG and Sustainable finance that have emerged globally and particularly within in the European Union in recent years, as well as reporting, disclosure and ratings for businesses, with a special focus on investments and financial services operators. A non-exhaustive list of topics covered within this study-unit include the following: - Enterprise risk management and Sustainable Finance - Climate change and Sustainable risk - Valuation of Sustainable risks - Green bonds and finance - Social risks and governance - Regulations and compliance - ESG and Sustainability mapping for risk management - ESG and Sustainability disclosure, reporting and ratings - Scenario analysis for ESG and Sustainable Finance. Study-unit Aims: - To provide comprehensive knowledge on sustainable finance, its regulations, and practical implementation; - To bridge the gap between academic theory and practical application in the field of sustainable finance; - To help students understand and critically analyse the SFDR and CSRD in the context of sustainable finance; - To explore the role and impact of Green Bonds and the EU Taxonomy in promoting sustainable finance; - To assess the effectiveness of Green Ratings Regulation in guiding investment decisions; - To apply sustainable finance principles to both Maltese and international case studies; - To evaluate the practical challenges and opportunities in implementing sustainable finance regulations and supervisory tools; - To provide students with a critical appraisal of the most salient emerging ESG issues, opportunities and risks in the global business world; - To develop a critical understanding of the relevance of ESG within today's corporate environment, including regulatory and reporting requirements in this regard. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: - Receive a good understanding of the SFDR, CSRD, and other relevant regulations, and apply them in real-world financial contexts; - Apply sustainable finance principles in both Maltese and international contexts, understanding the nuances and implications of different regulatory environments; - Evaluate the various business risks and opportunities associated with ESG and Sustainable Finance; - Assess the various regulatory and reporting requirements associated with ESustainable Finance, and their relevance for specific industries and sectors, with a special focus on financial services and investments; - Review and design appropriate ESG plans, Sustainable Finance and initiatives within a financial services context. 2. Skills By the end of the study-unit the student will be able to: - Analyse Green Bonds and Taxonomy: Analyse the impact of Green Bonds and the EU Taxonomy on sustainable investments and discuss their role in the broader financial market; - Evaluate the role and impact of Green Ratings in the sustainable finance framework; - Integrate theoretical knowledge with practical case studies, demonstrating a comprehensive understanding of sustainable finance; - Develop critical thinking skills and the ability to make informed decisions based on a deep understanding of sustainable finance practices and regulations; - Utilise a range of quantitative and qualitative skills in order to analyse Sustainable Finance issues, risks and opportunities, including thematic analysis and statistical tests; - Critique the various tools and concepts covered in class and propose alternative ideas, both in written and in oral form; - Deploy the concepts learned to undertake novel research within the field of Sustainable Finance, and apply the tools within a practical environment as part of their future careers. Main Text/s and any supplementary readings: Main - Schoenmaker, Dirk and Schramade, Willem, Principles of Sustainable Finance (November 11, 2018). Principles of Sustainable Finance, Oxford University Press, 2019, Available at SSRN: https://ssrn.com/abstract=3282699 Supplementary - Volz, Ulrich, Fostering Green Finance for Sustainable Development in Asia (March 2, 2018). ADBI Working Paper 814, March 2018, Available at SSRN: https://ssrn.com/abstract=3198680 or http://dx.doi.org/10.2139/ssrn.3198680 - Liang, Hao and Renneboog, Luc, Corporate Social Responsibility and Sustainable Finance: A Review of the Literature (September 24, 2020). European Corporate Governance Institute 鈥� Finance Working Paper No. 701/2020, This paper will appear in the Oxford Research Encyclopedia of Economics and Finance., Available at SSRN: https://ssrn.com/abstract=3698631 or http://dx.doi.org/10.2139/ssrn.3698631 - Flammer, Caroline, Corporate Green Bonds (April 14, 2020). Journal of Financial Economics (JFE), Forthcoming, Available at SSRN: https://ssrn.com/abstract=3125518 or http://dx.doi.org/10.2139/ssrn.3125518 - Macchiavello, Eugenia and Siri, Michele, Sustainable Finance and Fintech: Can Technology Contribute to Achieving Environmental Goals? A Preliminary Assessment of 鈥楪reen FinTech' (August 13, 2020). European Banking Institute Working Paper Series 2020 鈥� no. 71, Available at SSRN: https://ssrn.com/abstract=3672989 or http://dx.doi.org/10.2139/ssrn.3672989 - Schumacher, Kim, Environmental, Social, and Governance (ESG) Factors and Green Productivity: The Impacts of Greenwashing and Competence Greenwashing on Sustainable Finance and ESG Investing (December 15, 2022). APO Productivity Insights Vol. 2-11 (2022), Available at SSRN: https://ssrn.com/abstract=4303609 or http://dx.doi.org/10.2139/ssrn.4303609 - Jayathilake, Sajeewani, Impact of Green Financing for the Corporate Governance in the Banking Industry (November 30, 2019). OIDA International Journal of Sustainable Development, Vol. 12, No. 11, pp. 23-30, 2019, Available at SSRN: https://ssrn.com/abstract=3571734. |
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| ADDITIONAL NOTES | Pre-Requisite qualifications: Bachelor Degree or as suggested by the Board of Studies | ||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Abigail Attard Sarah Pulis Jonathan Sammut Jonathan Spiteri (Co-ord.) Michaela Valletta Lorraine Vella Alani Wahi Binti Mohd Wahi |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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