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Excerpt from course description

ESG Risks, Reporting and Regulation

Introduction

The objective of this course are three fold

  • Identify the activities/operations of the firm which create or destroy environmental and/or social value (ESG risks)
  • Understand and become familiar with the different regulatory and voluntary frameworks used to assess, disclose and report  ESG risks, and the economic tools to measure the positive and negative impacts of ESG risks
  • Integrate ESG risks in Enterprise Risk Management (ERM) and combine with other financial and operational risks to optimally enhance positive impact and minimize negative impacts

To help identify the positive and negative ESG impacts of corporate operations, we will first review the major environmental, sustainability and social challenges that frame the discussion of ESG impact, in particular within the context of the UN Sustainable Development Goals (SDG) and Climate Change challenges. In the process of integrating ESG risks in ERM, the students will need to become familiar with ESG impact measurement standards, impact materiality determination, ESG reporting frameworks, and both voluntary and regulatory ESG disclosure standards, like the EU Sustainable Finance Disclosure Standards (SDFR), of December 2019 or the SEC forthcoming Regulation on ESG Disclosure.

Course content

  • General introduction to the sources of ESG Risk for corporations and investors  
  • Introduction to Entreprise Risk Management (ERM): 
    1. Traditional ERM
    2. Integrating ESG Risks into ERM
  • Assessing ESG Risks and Opportunities
    1. Identification of an organization main impacts: where the organization creates (positive impact) or destroys value (negative impact), in terms of financial, environmental and social performance
    2. Measuring impact and identifying what really matters.
      • Measurement frameworks: UN SDG, GRI, WBCSD
      • Materiality determination: SASB, GRI 101
  • Managing ESG Risks and Opportunities
    1. Controlling material ESG risks
    2. Optimizing profitable positive impact opportunities
  • Reporting and Disclosing ESG Performance
    1. Reporting Standards: GRI, IIRC, TCFD (Task force on Climate related Financial Disclosures), etc.
    2. Disclosure standards – voluntary (GRI, IIRC, CFA, …) and regulatory (EU SDFR, SEC, …)
    3. Compliance
  • An integrated approach ESG risk management: the TCFD approach on governance, strategy risk management and performance indicators on climate related impact.
  • Assessing corporate ESG performance
    1. Main firm ESG performance data sources: KLD, Sustainalytics, Robeco, Refinitiv, Bloomberg, ...
    2. Strengths and weaknesses of different sources.
    3. Parsing and combining ESG performance data for improved assessments.

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.