AC200: Sustainability Reporting in Capital Markets

This course offers insights into the role of sustainability reporting in helping the world achieve sustainability goals.

In the past decade, environmental, social and governance (ESG) issues have attracted enormous attention from investors, regulators, and other stakeholders. This is evidenced by the exponential growth of sustainable investing in global capital markets and the mandating of ESG-related disclosures across the world.

This course introduces the concept of sustainability reporting and responsible investing. It evaluates the potential benefits of firms disclosing ESG information, as well as significant challenges to be overcome, including the risk of greenwashing. You will learn about existing and emerging ESG regulations and frameworks for ESG performance metrics. The course also explores how key capital market participants, such as asset managers, analysts, and banks, could incorporate ESG information into their investment decisions.

Students will take away from this course a solid understanding of the foundations and evolution of corporate ESG activities, the pros and cons of ESG disclosure, and the adoption of ESG information by different market participants.

Students who receive an offer for this course are also eligible to apply for the Academic Director's Scholarship.

Prerequisites: Any undergraduate-level course with some accounting or finance content.

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: A mid-session examination (50%) and a final examination (50%)

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is suited to intellectually curious individuals interested in sustainability, ESG, corporate social responsibility and impact.

The course will give students key insights relevant to careers in policymaking, asset management, financial advisory, banking, ESG rating agencies and data providers, or the provision of ESG assurance services at auditing or consulting firms.

Upon successful completion of this course, students will be able to:

• Understand the core concepts of sustainability for corporations
• Analyse and critically evaluate a firm’s sustainability/CSR report
• Identify the material ESG issues impacting businesses and make recommendations for improvement
• Describe and critically evaluate the methodologies underlying ESG ratings implemented by rating agencies
• Incorporate ESG information into traditional financial and valuation analysis
• Make investment decisions based on ESG factors

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.