SUSTAINABILITY IN BANKING AND FINANCIAL SERVICES

This course complements the Economics and Finance programme by extending core training in financial markets, banking, and financial intermediation to the domain of sustainability. It builds on students’ knowledge of asset pricing, risk management, and regulation to examine how sustainability considerations affect the production and impact of financial and banking services, including lending, investment, and advisory activities. The course introduces key frameworks (e.g., financial and double materiality), measurement tools, and regulatory developments, and evaluates their implications for financial institutions. It equips students to critically assess the role of banking and financial services in supporting—or hindering—the transition to a sustainable economy.

Knowledge and understanding: At the end of the course, students understand the main concepts of sustainability in banking and financial services, materiality frameworks, measurement tools (ESG, taxonomies, disclosure), and key regulatory developments.
Applying knowledge and understanding: Students are able to apply these concepts to analyse how sustainability affects the production and impact of financial services, assessing risks, opportunities, and trade-offs.
Making judgements: Students develop autonomous judgement in critically assessing sustainability metrics, evidence, and policies, comparing theoretical and empirical perspectives.
Communication skills: Students are able to present and discuss academic contributions, engage in structured debates, and communicate complex concepts clearly.
Learning skills: Students develop independent learning skills, analysing academic literature and integrating interdisciplinary perspectives in a rapidly evolving field.

Students are expected to have a basic knowledge of financial markets and institutions, as well as fundamental accounting principles.

The course examines sustainability in banking and financial services through both the production of financial services (e.g. governance, risk management, disclosure) and their real-world impacts (e.g. capital allocation and economic outcomes). It introduces key conceptual frameworks (e.g., financial and double materiality), sustainability measurement tools (e.g., ESG ratings and taxonomies), and the regulatory architecture shaping financial markets (e.g., EU Taxonomy, CSRD/ESRS, SFDR, IFRS Sustainability Standards), and analyses their interaction in financial decision-making. The course places strong emphasis on the reading, discussion, and critical comparison of academic papers presenting different perspectives, supported by empirical evidence.

Some scientific articles from international peer-reviewed journals will be made available through the course Moodle page.
Some articles will be mandatory and will represent the fundamental concepts of the course, on which the written exam will mainly be based.
Other articles will also be presented, from which students will be able to choose, and which will be used for class discussions and the oral part of the exam.

Assessment of learning is structured into two components. The first consists of a written multiple-choice exam, graded out of 30, aimed at assessing students’ understanding of the main concepts, theoretical frameworks, and tools covered in the course, such as sustainability, materiality, ESG measurement, and regulation. Passing the written exam with a minimum grade of 18/30 is a necessary prerequisite for access to the oral exam.

The second component consists of an oral exam, conducted in small groups of 2–3 students, during which students discuss and critically compare academic articles presented during the course. The oral exam serves to confirm or modify the grade obtained in the written exam, based on the quality of the discussion, the ability to apply the concepts learned, critical thinking, and clarity of presentation.

written and oral

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

Regarding the grading scale:

A. Scores in the range of 18–22 will be awarded in the presence of:
• Sufficient knowledge and understanding of the course contents;
• Limited ability to apply concepts and to analyse information, with only partial autonomy of judgement;
• Adequate communication skills, including the use of basic terminology related to sustainability in banking and financial services.

B. Scores in the range of 23–26 will be awarded in the presence of:
• Fair knowledge and understanding of the course contents;
• Fair ability to apply concepts and to analyse information, with some degree of autonomous judgement;
• Appropriate communication skills, including the correct use of discipline-specific terminology.

C. Scores in the range of 27–30 will be awarded in the presence of:
• Good to excellent knowledge and understanding of the course contents;
• Good to excellent ability to apply concepts, critically analyse information, and formulate autonomous judgements;
• Clear and effective communication skills, with full command of discipline-specific terminology.

D. Honors (30 e lode) will be awarded in the presence of:
• Excellent and comprehensive knowledge and understanding of the course contents;
• Excellent critical and analytical abilities, with a high degree of autonomy of judgement;
• Highly effective and precise communication, demonstrating full mastery of the subject.

The course combines lectures and interactive sessions. Lectures introduce the main conceptual frameworks, measurement tools, and regulatory aspects of sustainable finance. Interactive sessions are based on the discussion of academic papers and case-based exercises, with active student participation aimed at developing critical thinking and the ability to engage with different perspectives.