Sustainable Finance: Climate-Conscious and Long-Term Investing

Catalog description

In this class, we will focus on how to finance long-term projects and the role of finance in promoting sustainability. A natural example of long-term projects in desperate need of financing are green investments and infrastructure. We cover the history of thought on corporate governance, the rise of shareholder primacy, and recent efforts to promote more inclusive ownership such as stakeholder capitalism. We discuss challenges of securing long term financing and aligning incentives between different parties. A relevant example of the latter is the rise of so-called ESG initiatives and the unintended consequences of managerial discretion in choosing performance measures. Co-/Pre-requisite: Foundations of Finance ( BUSF-SHU 202 ) Fulfillment: BUSF Finance elective; BUSM Non-Marketing elective; IMB Business elective; Social Science Focus Environmental Studies 200 level course.