ESG in Business and Finance

This course examines ESG and sustainability in business and finance. Traditionally, for-profit enterprises have exclusive focused on maximizing profit and shareholder value, and non-financial issues were largely dismissed as irrelevant. This view, developed in the age of resource abundance, is becoming quickly outdated. ESG in Business and Finance takes as a starting point that businesses and financial institutions have an important role to play in the transition toward a sustainable and inclusive economy both to ensure the planet’s wellbeing but also to survive and thrive in the new economy. This course considers the risks and opportunities that the planet-wide challenges, such as climate change, nature loss, and persistent social and economic inequality, present for companies and examines how companies can begin to measure, report, and address their environmental, social, and governance (ESG) issues and eventually transform their business strategy and operations to be compatible with the net-zero, nature positive, and equitable economy. This course also considers sustainability in the context of finance, specifically how ESG can help financial institutions to identify financial risks and opportunities and allocate capital to its most productive use.

In this master-level course, students will be introduced to main concepts and theories in business sustainability and sustainable finance. The course will also delve into critical recent developments, including principles, standards and frameworks, global policy and business initiatives, partnerships and alliances, regulation, and key debates in sustainability. The course will also cover ESG data and reporting, ESG integration and active ownership (sustainable finance). The course will provide a hand-on knowledge and experience conducting company-specific ESG analysis. The course will consist of regular lectures, active-learning exercises, case studies, role-play simulations, and visiting guest lectures by top ESG practitioners and researchers with an emphasis on active student engagement and discussion. The course, which is largely qualitative in nature and does not require advanced quantitative skills, aims to promote students’ critical thinking and communication skills and equip them with the knowledge about ESG and sustainability that is increasingly expected on the job market.

By the end of this course, students should be able to:

• Describe how business and sustainable development (including SDGs) intersect, overlap but also conflict
• Evaluate key transition challenges to net-zero, nature positive, and equitable economy
• Appraise critical recent developments and key concepts, models, theories, and debates in business sustainability and sustainable finance
• Evaluate how sustainable investing differs from impact and values-based investing
• Describe ESG integration and ESG instruments and tools
• Appraise active ownership tools and practices
• Explain challenges pertaining to ESG disclosure, reporting, and data
• List main corporate sustainability reporting frameworks applicable to Norwegian businesses and sustainable finance regulation applicable to Norwegian financial institutions
• Evaluate economic, social and environmental issues (ESG) of a company
• Prepare succinct ESG analysis write-ups and polished MS PowerPoint (or alternative presentation software) presentations
• Analyze, debate, and present course material orally and in writing (English)

Learning forms and activities may include:

• Lectures with a strong focus on student engagement
• Visiting guest lectures by top ESG professionals and researchers
• Harvard Business School cases
• Small group work, including discussions, active-learning exercises, role-play simulations, and group projects
• Presentations