FM471E Half Unit
Sustainable Finance and Impact Investing
This information is for the 2025/26 session.
Course Convenor
Prof Christopher Polk
Dr Greg Fischer
Availability
This course is available on the MSc in Finance (part-time). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process.
All students on a programme listed under the Course Availability will be given a place. This course is closed to outside students and does not permit auditing students.
Please contact finance.teachingmanager@lse.ac.uk with any queries.
No exceptions to the availability policy will be made, and audits of FM471E are not allowed.
Requisites
Pre-requisites:
Students must have completed FM422 and FM423 before taking this course.
Course content
This course provides a conceptual foundation in sustainable finance and impact investing along with a clear understanding of the empirical facts associated with how sustainable finance and impact investing affect firm and fund performance. Using a blend of readings, lectures, cases, and discussions, participants will learn to critically assess the actions of investors and firms with regards to sustainable finance and impact investing, including both motivation and resulting consequences.
Topics addressed will include corporate ESG (Environmental, Social, and Governance) investing, climate finance, and various impact investing topics. Participants will take away from the course a solid understanding of 1) the evolution of sustainable finance and impact investing from niche field to mainstream; 2) the variety of ways in which sustainable finance and impact investing are implemented in practice, and 3) the tools, models and frameworks behind sustainable finance and impact investing.
Teaching
30 hours of seminars in the Winter Term.
Formative assessment
Case studies and homework assignments will help communicate and develop understanding of course concepts.
Indicative reading
- Freeman, Ed, 1997, "Stakeholder Theory of the Modern Corporation", Business Ethics, 5th Edition, 38-48.
- Friedman, Milton, 1970, “A Friedman doctrine: The social responsibility of business is to increase its profits,” The New York Times Magazine, September 13, 1970.
- Giglio, Stefano, Bryan Kelly and Johannes Stroebel, 2021, "Climate Finance", Annual Review of Financial Economics 13, 15-36.
- Pastor, Lubos, Robert F. Stambaugh, and Lucian Taylor, 2021, “Sustainable Investing in Equilibrium,” Journal of Financial Economics 142 550-571.
- Pedersen, Shaun Fitzgibbons, and Lukasz Pomorski, 2021, “Responsible Investing: The ESG-efficient Frontier,” Journal of Financial Economics 142 572-597.
Assessment
Continuous assessment (100%)
Key facts
Department: Finance
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 15
Average class size 2024/25: 15
Controlled access 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Leadership
- Self-management
- Team working
- Problem solving
- Application of information skills
- Communication
- Application of numeracy skills
- Commercial awareness
- Specialist skills