Course content

This module provides banking professionals with a comprehensive understanding of how environmental, social, and governance (ESG) regulations and performance metrics underpin sustainability investments. The module starts by guiding you through the evolving landscape of sustainability reporting and sustainable finance regulations relevant to Norwegian companies, including the Norwegian Accounting Act (with amendments implementing the EU’s Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosure Regulation (SFDR)), the Norwegian Transparency Act (Åpenhetsloven), and the EU Taxonomy Regulation. You will explore how these regulations enhance sustainability reporting transparency. Additionally, the module offers insights on emerging trends and proposals in ESG regulation that could influence future investment practices.

Building on this regulatory foundation, the module then explores ESG performance in companies. Here, you will learn how to define and evaluate ESG factors and understand their increasing significance in financial markets. The course introduces ESG data providers such as Sustainalytics and LSEG Workspace. You will gain insights into the methodologies behind ESG scoring and how to interpret ESG scores. The module examines the real-world effects of ESG performance, including its correlation with stock market returns and case studies highlighting both high and low ESG performers. Additionally, you will explore how ESG factors impact credit ratings in the corporate bond market.

By the end of the module, you will be well prepared to discuss sustainability regulations and performance, enabling you to provide better investment services to clients.

Learning outcome

1. Understand key sustainability regulations affecting Norwegian companies (e.g., Norwegian Accounting Act, EU Taxonomy, CSRD, and SFDR) and explain their implications for sustainability reporting.
2. Evaluate ESG performance
3. Compare major ESG data providers (e.g., Sustainalytics, LSEG).
4. Assess the correlation between ESG performance and financial outcomes in stock and corporate bond markets through examples.
5. Critique the limitations of ESG ratings, including data quality challenges and implications for investment decision-making.

Learning methods and activities

Digital teaching.

Physical gathering with lectures and group work.

Compulsory assignments

• Submission of assignment
• Attendance digital or physical

Course materials

To be informed about when the course starts / digital compendium.