Corsi di Studio del Dipartimento di Economia e Statistica "Cognetti de Martiis"

The course is made up of two modules.

The first module is taught by Professor Sona Kalantaryan. It aims at providing the students with an introduction to the principles of corporate sustainable finance looking at the policy context, theoretical foundations and evidence available through various datasets and studies. After providing a brief overview of green initiatives and frameworks at global and regional levels, the module delves into concepts of corporate finance adopting the integrated model approach which implies that companies move from simply maximising financial value to optimising integrated value, in which financial, social, and environmental value are combined. In addition, the module will look at the constraints of eco-innovation and crowdfunding approaches for renewable energy projects. The module concludes with a Data Lab which will introduce students to firm-level data collected and made available by the European Investment Bank through EU Member State dashboards and scoreboards. Based on the provided set of information students are expected to develop a brief country report while working in a group.

The second module is taught by Professor Dario Cottafava. The second module aims to provide to students fundamental theoretical and applied knowledge related to impact accounting and how to apply to real case studies. Specifically, the second module focuses, among other concepts, on Corporate Governance and the hybrid spectrum (i.e., from for profit to not for profit organization passing through benefit corporation), the theory of change and the impact-weighted account framework, impact investing and the social impact bonds, the effect of eco-innovation and circular economy strategies on green investments and on some up to date case studies and technologies such as the deepsea mining, carbon capture and utilization storage technologies.

1) Knowledge and understanding ability

The module will help (i) to develop a general understanding of corporate finance in the context of sustainability; (ii) to learn the technical language of corporate finance in the context of sustainability in English; (iii) to learn how the concepts of corporate finance can be used within Integrated Value Creation; (iv) to develop a general understanding of cost behaviour for planning, controlling and decision-making processes; (v) to understand the fundamental of impact accounting and investing; and (vi) to learn about most up to date practices and case studies.

2) Capability to apply knowledge and understanding

The module will provide the conceptual tools to face with method and critical approach the complex and dynamic reality of a corporation from the sustainability point of view. Several exercises will be presented in class to apply theoretical concepts and tools.

3) Capability to approach the subject in a critical manner

Students will be able to elaborate a personal reflection on the economic dynamics in the sector of their interest.

4) Communication abilities

The dialogue with the professor and among them will allow students to develop interaction and communication capabilities.

5) Learning ability

Through individual activities, and group projects the course aims to develop the self-learning abilities of the students as well as skills to work in a team.

Day 1/ Part 1

Overview of green initiatives at global and regional levels

• United Nations Framework Convention on Climate Change, 2015 Paris Agreement, UN Principles for Responsible Investment (PRI)
• EU Green Deal, Fit for 55 package, Net-Zero Industry Act, EU Taxonomy, etc.
• SBTi

Day 1/ Part 2

Why Corporate Finance for Long-Term Value?

• The Company within Social and Planetary Boundaries
• Sustainable Development Goals
• Integration of Sustainability into Corporate Finance

Day 2/ Part 1

Integrated Value Creation

• Basics of Integrated Value Creation
• Identifying Value Creation and Value Destruction
• Quantifying Integrated Value Creation

Day 2/ Part 2

Discount Rates and Scarcity of Capital

• Discount Rates and the Time Value of Money
• Determinants of Discount Rates on Financial Capital
• Discounting Social and Environmental Capital 
• Discounting Integrated Capital

Day 3/ Part 1

Calculating Social and Environmental Value

• Basics of Value Calculation
• Material Social and Environmental Factors
• Quantifying Social and Environmental Impact
• Monetising Social and Environmental Impact

Day 3/ Part 2

Investment Decision Rules

• Calculating Financial Value by Means of NPV 
• Behavioural Effects on Investment Decisions
• Integrated Investment Decision Rules
• Internalisation

Day 4/ Part 1

EU firms' climate strategies and drivers of firms’ investment in climate action

Day 4/ Part 2

Group exercise based on EIB reports: Case studies for EU Members States

Day 5

• Corporate Governance
• The hybrid spectrum
• Benefit-corporation legislation
• [CASE STUDY] B-corps examples
• [DISCUSSION] Pros and cons, and limitation of shared value

Day 6

• Impact measurement frameworks
• Fundamentals of theory of change
• Impact-Weighted Accounts Framework
• [CASE STUDY] True price examples

Day 7

• Fundamentals of blended finance, and impact investing
• The impact investing spectrum
• Social Impact Bond (SIB) - pay-for-success model
• [CASE STUDY] Social Impact Bond examples
• [CASE] Long-term impact evaluation of investment on sustainable mobility

Day 8

• Global Supply chain and material demand for energy transition
• [CASE STUDY] The deep sea mining case
• [CASE] Carbon Capture and Utilization Storage technologies

Day 9

• Eco-innovation & Circular Economy: Barriers, drivers, structures and dimensions.
• [CASE] Eco-innovation and circular economy investment

Day 10

• [CASE] Open Innovation and Sustainability investment
• Introduction to biodiversity accounting & the Task Force on Nature-related Financial Disclosures

Day 11

Reporting of EU Member State case studies by students

Day 12/ Part 1

The Crowdfunding of Renewable Energy Projects

Day 12/ Part 2

Eco-innovation; understanding the constraints

Face to face. 

The module will include both theory and exercises. The material will include the use of PowerPoint presentations and guidance for country case study development. 

The exam will be written based on the material discussed during the lessons. The exam will be the same for attending and non-attending students and will check both comprehension and analytical abilities.

The final mark will be expressed in 30/30 and will be composed as follows:

- 5 Multiple choices: 2 points correct answer, 0 points wrong or no answer, for a total of 10 points.

- One country study: up to 10 points (the 5/6 page country case study must be submitted by 29.05.2024)

- 2 Short exercises: up to 5 points each, for a total of 10 points.

NOTE: Only one grade will be registered, calculated as the average of the grades obtained in the two specific modules.

Office hours will provide a possibility for students to clarify the material presented during the lectures and guide them in developing the country report foreseen as an outcome of Data Lab.

The presentation of country case studies in class (April 4 and 5) will give you a possibility to see what other groups did, receive feedback and eventually improve the country case study before submitting. 

To be defined ahead of the course.

Schoenmaker D. & Schramade W. (2023). Corporate Finance for Long-Term Value.

Other materials will be uploaded in due time.