Sustainable Finance

This workshop was originally taught at the Summer Academy for Pluralist Economics 2021
Instructor: Anne Löscher

Module description

Qualification goals / Outcome:

Aim of this intensive workshop is:

1. to understand macroeconomic workings of climate change as as the background of sustainable finance;
2. to analyse financial assets with ESG (Environmental, Social and Governance) criteria attached to them and their markets and important institutional players;
3. to develop a critical perspective on the current setup of sustainable finance;
4. and to synthesise this knowledge by applying it on in-depth case studies.

Course content:

The workshop adresses the macroeconomic consequences of climate change in countries which hold a subordinated integration in the international financial system; the workings of financial markets and its agents; the current scope and extent of ESG finance and its most important agents; current developments such as regulations aiming to mainstream green finance; the critique and possible alternatives to ESG finance.

Teaching methods:

The workshop consists of preparatory work in the form of preparing the compulsory readings or watching prerecorded material, followed by a mix of lectures and discussions among all participants or within break-out rooms. Each student is asked to conduct a case-study of either a country, a type of financial asset or a financial agent against the backdrop of ESG finance.

Kind of module:

It is up to the programme coordinator whether this module is compulsory or elective. It is particularly suitable to be included in study programmes of economics, political science and/or finance. Depending on the prior knowledge of the students, this course is suitable for advanced study programmes as well.

Requirements for participation:

The participants are asked to be fluent in English in reading, speaking and writing. They should be ready to actively engage in the discussions, have an interest in learning about the subject matter and seek for support when facing potential difficulties.

Requirements for granting credit points

Assessment pattern

The workshop is successfully completed after an active participation in the course and the final (unmarked) presentation of the case studies. If ECTS points were to be gathered, the assessment is based on the quality of the essay.

Module coordinator

The module is carried out by the Netzwerk Plurale Ökonomik e.V. Responsible staff:
Janina Urban, M.Sc.  and Anita Lehner, M.A.

Module teaching staff

Anne Löscher is a PhD student at the University of Siegen and works in a research project on the impact of climate change and policies on emerging economies financed by INSPIRE. She holds a MSc in Empirical Economics and Policy Consulting, Martin-Luther-University, Halle (Saale), Germany and a MSc in Economics with reference to Africa (University of London, UK).

Reading List

• Batten, S., Sowerbutts, R. and Tanaka, M. (2020) ‘Climate change: Macroeconomic impact and implications for monetary policy’, in Walker, T. et al. (eds) Ecological, Societal, and Technological Risks and the Financial Sector. Palgrave Macmillan (Palgrave Studies in Sustainable Business In Association with Future Earth). doi: 10.1007/978-3-030-38858-4.
• Belloni, M. et al. (2020) The performance and resilience of green finance instruments: ESG funds and green bonds. Available at: https://www.ecb.europa.eu/pub/financial-stability/fsr/focus/2020/html/ecb.fsrbox202011_07~12b8ddd530.en.html (Accessed: 3 May 2021).
• Bolton, P. et al. (2020) The green swan. Bank of International Settlements; Banque de France. Available at: https://www.bis.org/publ/othp31.htm (Accessed: 24 January 2020).
• Hache, F. (2019) First policy report – 50 shades of green: the rise of natural capital markets and sustainable finance. Policy Report Part 1. Green Finance Observatory. Available at: https://greenfinanceobservatory.org/2019/03/11/50-shades/ (Accessed: 2 February 2020).
• J.P. Morgan Private Bank (2021) Sustainable Investing. Available at: https://privatebank.jpmorgan.com/gl/en/services/investing/sustainable-investing (Accessed: 3 June 2021).
• Gabor, D. (2020) Greening the European Financial System Three ideas for a progressive Sustainable Finance agenda. Foundation for European Progressive Studies (FEPS), Roskilde University, University of the West of England (UWE). Available at: https://www.feps-europe.eu/attachments/publications/feps%20paper%20three%20ideas%20gabor.pdf.
• Grabel, I. (1996) ‘Marketing the third world: The contradictions of portfolio investment in the global economy’, World Development, 24(11), pp. 1761–1776. doi: 10.1016/0305-750X(96)00068-X.
• Kaltenbrunner, A. (2012) ‘The exchange rate’, in Toporowski, J. and Michell, J. (eds) Handbook of Critical Issues in Finance. Cheltenham, UK: Edward Elgar Publishing, pp. 85–92.