Legal Issues in Sustainable Finance

The aim of this module is to provide students with specialised knowledge and understanding of key legal issues involved in sustainable finance policy, an area of policy that has become of paramount importance in both Europe and internationally. Students registering to this module show interest in sustainability issues, in general, and in the interplay of law, finance and sustainability, in particular.

After introducing students to the aims of sustainable finance policy, the first part of the module will develop basic terminology including sustainability risks and sustainable investments . Institutions, markets and products shaping the progress of sustainable finance will also be examined. The second part of the module consecrates to the fiduciary role of investment service providers in terms of meeting the client’s investment preferences acting in the best interest of the clients and exercising stewardship functions including voting in shareholders general meeting. This part also conceptualises a pressing problem in sustainable finance, notably ‘greenwashing’. Private and public enforcement tools have been used to tackle greenwashing and such tools will be identified and examined. The third part of the module looks at information disclosure obligations. These rules constitute the foundations of EU sustainable finance law and regulation, including the Corporate Sustainability Reporting Directive, Sustainable Finance Disclosure Regulation, and the EU Taxonomy Regulation.

Although the content taught in this module will orbit around EU sustainable finance law and policy, the various subjects under consideration and discussion typically find source and application across countries, legal systems and academic disciplines.

This module will equip students to address sustainability issues in a professional, expert manner. Student taking this module will not only satisfy their eagerness to learn and engage in exciting and innovative topics but also boost their job prospects among relevant actors in the sustainability ecosystem including corporations, government, financial institutions, NGOs and international organisations, among others.

Learning Outcomes:

On successful completion of this module, students should be able to:

• Explain key concepts, principles of sustainable finance at the level of law, regulation and policy
• Critically analyse problems in sustainable finance and the interplay of law, environment, society and finance in this policy context
• Communicate ideas, opinions and findings effectively in oral and written modes
• Conduct research and reading independently to address specific problems and questions in sustainable finance.

Assessment:

• (90%) 5000-word essay due at the end of the semester. Topic chosen by the student among the course topics
• (10%) class participation. Class participation represents 10 points out of the 100 points grading system (the essay assignment represents 90/100 points). Out of these 10 points, a total of 4 points are allocated to attendance to the weekly lecture, and 6 points to the frequency (number) of participations in class in oral mode. Class participation means that the student will attend the lecture and intervene or engage orally in class discussion by posing relevant questions, making comments, explanations or critiques, or stating arguments. Pedagogically, class participation is strongly encouraged not only to improve communication skills but also to achieve deep learning. Students will be required to complete weekly pre-lecture readings on key issues and examine them in class along peers in group discussion or by way of individual presentations. Unless the lack of attendance to lectures is duly justified with probatory documents (e.g., medical reasons), this absence will discount the student’s attendance mark.

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