Course 2022-2023 in Sustainable Finance

Abstract

These lectures notes have been written for the course in Sustainable Finance given at the University of Paris-Saclay. The slides cover the following topics: (1) Introduction, (2) ESG Investing, (3) Impact of ESG Investing on Asset Prices and Portfolio Returns, (4) Equity Portfolio Optimization with ESG Scores, (5) Sustainable Financial Products, Impact Investing & Engagement, (6) Global Warming & Climate Change, (7) Economic Modeling of Climate Change, (8) Climate Risk Measures, (9) Transition Risk Modeling, (10) Portfolio Construction with Climate Risk, (11) Equity and Bond Portfolio Optimization with Green Preferences, (12) Physical Risk Modeling, and (13) Climate Stress Testing and Risk Management.

Keywords: Sustainable finance, ESG Risk, Climate Risk

JEL Classification: G1, Q5, Q01