Economics 229 - Introduction to Environmental, Social and Governance (ESG)

Climate change and enhanced public awareness about environmental (E) and social (S) issues have transformed how businesses operate. Analysts and shareholders have long understood the consequences of poor corporate governance (G). In contrast, incorporating environmental and social factors into investment decision-making has evolved more slowly. The course considers ESG factors in their complexity and interconnection by assessing companies’ ESG performance and its material impact on stakeholders’ current and long-term wealth. After the course, students will become familiar with the global sustainable development challenges; understand key concepts relating to climate change, including climate change mitigation, climate change adaptation, and resilience measures; understand the systemic relationships between business activities and social issues (globalization, automation, and artificial intelligence) and the interests of different stakeholder groups; describe the evolution of corporate governance frameworks and shareholder engagement; gain a working knowledge of the sources of ESG data and become familiar with accounting and reporting standards; identify and evaluate ESG-related risk exposures and investment opportunities; and understand how ESG affects the valuation of different financial securities.

Requisite: ECON 111/111E. Limited to 30 students. Fall and Spring semesters. Professor Bychkova.

How to handle overenrollment: Some preference will be given to a) students who have taken fewer 200-level economics classes and b) economics majors. The class will be selected to achieve a group with diverse academic backgrounds and interests.

Students who enroll in this course will likely encounter and be expected to engage in the following intellectual skills, modes of learning, and assessment: Readings, independent research, group work, exams, and critical thinking.