Course Content

This course deals with corporate financial decision-making, both investments and financing, with a focus on sustainability. Environmental, social and governmental (ESG) issues are incorporated into financial analyses. We discuss questions such as: What are the impacts of sustainability adjustments on financial returns? Which financing vehicles exist for sustainability projects, e.g. green bonds? How do sustainability-adjusted simulations differ from the standard financial models? The course emphasizes long-term, sustainable value creation, as opposed to short-term profit maximization.

Learning Objectives

Upon the successful completion of this course, students will:

• Have in-depth knowledge of valuation and capital budgeting in a corporate context

• Have the competence to analyze cases and solve problems in financial management

• Be able to integrate environmental, social and governance issues into investment models

• Understand sustainability risks and opportunities of relevance for finance professionals

• Have intimate knowledge of different financing vehicles for sustainable investments

Books and Reading Material

• Koh, A., Ang, S.-K., Brigham, E.F., and Ehrdhardt, M.C. (2014) Financial Management Theory and Practice (An Asia Edition), Cengage Learning, Singapore.

• Schoenmaker, D. and Schramade, W. (2019) Principles of Sustainable Finance, Oxford University Press.

• Cases and academic articles

Course Coordinator

Eduardus Tandelilin, Professor (Universitas Gadjah Mada)

Steen Koekebakker, Professor (University of Agder)