Sustainability Accounting in Capital Markets - MAN00072H

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Professional requirements

N/A

Related modules

Pre-requisite modules

• Corporate Finance (MAN00002I)
• Financial Reporting (MAN00038I)

Module will run

Occurrence	Teaching period
A	Semester 2 2026-27

Module aims

Over the past decade, environmental, social, and governance (ESG) issues have garnered substantial attention from investors, regulators, and diverse stakeholders, marked by a remarkable surge in sustainable investing across global capital markets and the widespread enforcement of ESG-related disclosures. The course, Sustainability Accounting in Capital Markets, is designed to equip students with the knowledge and skills essential for grasping the intricate relationship between sustainability and the financial performance of firms. Delving into the significance of sustainability reporting in advancing global sustainability objectives, this comprehensive module introduces pivotal concepts of sustainability reporting and addresses issues relevant to financial performance. It scrutinises the potential benefits of firms disclosing sustainability information and navigates through challenges, including the risk of greenwashing. Students will gain valuable insights into both existing and emerging sustainability regulations, accompanied by frameworks for evaluating sustainability performance metrics. The curriculum goes on to explore how influential players in capital markets, such as asset managers, analysts, and banks, can seamlessly integrate sustainability information into their business and investment decisions. Covered topics span the necessity for sustainability accounting standards, understanding and applying Sustainability Accounting Standards Board (SASB) standards, identifying sustainability issues pertinent to financial performance, evaluating the comparability of sustainability information, and comprehending the nuanced connection between sustainability performance and firm valuation.

Module learning outcomes

After successful completion of the module students will able to: - Understand the need for Sustainability Accounting Standards, including their historical basis, shortcomings and global jurisdictions. - Understand SASB (Sustainability Accounting Standards Board) standards, including how companies and investors use them to disclose sustainability information. - Identify and analyse sustainability issues relevant to financial performance. - Analyse and critically evaluate a firm’s sustainability/CSR/ESG report. - Identify material sustainability issues impacting businesses and make recommendations for improvement. - Describe and critically evaluate the methodologies utilized by rating agencies in determining sustainability/ESG ratings. - Evaluating the comparability of sustainability/ESG information. - Comprehend the connection between a firm’s sustainability disclosures and valuation. Academic and graduate skills - Advanced subject specific knowledge and understanding - Cognitive (thinking) skills: through self-study and assessments - Analytical skills required to undertake finance calculations and/or estimations. - Communication: via written assignments, online discussion boards, virtual study groups and tutorials; - Ability to conduct research into financial issues independently through data collection, analysis, synthesis and reporting.

Module content

Understanding Sustainability Accounting: Demand, Rationale and Global Jurisdictions Sustainability Reporting: History, Frameworks and Regulation Sustainability Disclosure Ecosystem and Process Accounting for Climate, Water and Biodiversity Accounting for Human Rights and Economic Inequality Understanding SASB Standards Using SASB Standards: Corporates and Investors Identifying Sustainability Issues Relevant to Financial Performance of Firms Evaluating Comparability of Sustainability Information Sustainability Performance and Firm Valuation Effect of ESG on Discounted Cash Flow and Relative Valuation

Indicative assessment

Task	% of module mark
Essay/coursework	50.0
Oral presentation/seminar/exam	50.0

Special assessment rules

None

Indicative reassessment

Task	% of module mark
Essay/coursework	50.0
Oral presentation/seminar/exam	50.0

Module feedback

Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy.

Indicative reading

Laine, Tregidga and Unerman (2022). Sustainability Accounting and Accountability. Third Edition. Routledge. Glavas, D (2023). Valuation and Sustainability: A Guide to Include Environmental, Social, and Governance Data in Business Valuation. First Edition. Springer. SASB Standards Relevant journal articles discussed in lectures.