Module 1: Green Finance: Fundamentals and Building Blocks#
ULBS Lucian Blaga University of Sibiu
Module Overview#
This module establishes the conceptual and analytical foundations of sustainable finance through the ESG framework. Students examine how Environmental, Social, and Governance criteria are defined, measured, and integrated into investment decisions, and learn to distinguish genuine sustainability practices from greenwashing. The module concludes by applying ESG concepts to the ASEAN context, exploring the particular challenges and opportunities of emerging market sustainable finance.
Learning Outcomes#
Upon completing this module, students will be able to:
- Define the ESG framework and its three pillars in the context of sustainable finance
- Evaluate ESG data providers and rating methodologies for quality and reliability
- Apply ESG integration strategies across different investment approaches
- Distinguish impact investing from conventional ESG investing, including additionality criteria
- Identify greenwashing tactics and assess regulatory countermeasures
- Analyze the ASEAN ESG landscape and challenges specific to emerging markets
Topics Covered#
1. The ESG Framework and Sustainable Finance Principles#
Pedagogical arc: “Understanding the ESG framework is the foundation of all sustainable finance.”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
2. ESG Data Providers, Ratings, and Quality Assessment#
Pedagogical arc: “Not all ESG scores are equal — understanding rating divergence is essential for practitioners.”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
3. ESG Integration Strategies for Investors#
Pedagogical arc: “From negative screening to full ESG integration — choosing the right approach for different mandates.”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
4. Impact Investing and Additionality#
Pedagogical arc: “Impact investing demands more than avoiding harm — it requires proving that capital makes a measurable difference.”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
5. Greenwashing: Detection, Prevention, and Regulation#
Pedagogical arc: “Greenwashing erodes trust in sustainable finance — regulators are responding with hard enforcement.”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
6. ASEAN ESG Landscape and Emerging Market Challenges#
Pedagogical arc: “How do ESG challenges differ in emerging ASEAN markets?”
Foundation#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Intermediate#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
PhD Research#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
Quantitative Lab#
Detailed content for this tier will be developed by ULBS during WP3 curriculum development.
ASEAN Case Study#
To be developed with ASEAN partner institutions during WP3.
Key References#
To be added by ULBS.
Teaching Methods#
| Method | Description | Hours |
|---|---|---|
| Lectures | ESG frameworks, rating methodologies, and regulatory landscape | 6-8 |
| Workshops | ESG integration strategy exercises and case analysis | 4-5 |
| Data Lab | ESG rating comparison and divergence analysis | 4-5 |
| Simulation | Greenwashing detection and investment screening exercises | 3-4 |
| Self-Study | ESG report analysis and literature review | 3-4 |
Assessment#
| Component | Weight | Format |
|---|---|---|
| ESG Analysis Report | 30% | Evaluate an ASEAN company’s ESG profile using multiple rating providers |
| Integration Strategy Paper | 40% | Design and justify an ESG integration approach for a defined investment mandate |
| Greenwashing Case Study | 30% | Identify and assess greenwashing claims in a selected sustainability report |
Key References#
Required Reading#
- CFA Institute (2020). ESG Integration in the Americas: Markets, Practices, and Data.
- UNPRI (2021). An Introduction to Responsible Investment: ESG Incorporation.
- ESMA (2023). Guidelines on Fund Names Using ESG or Sustainability-Related Terms.
Recommended Reading#
- Berg, F., Koelbel, J.F., & Rigobon, R. (2022). Aggregate confusion: The divergence of ESG ratings. Review of Finance, 26(6), 1315-1344.
- Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210-233.
- ASEAN Capital Markets Forum (2022). ASEAN Sustainable Finance State of the Market Report.
Connection to Other Modules#
| Related Module | Connection |
|---|---|
| Module 2: Global, EU and ASEAN Contexts | International frameworks contextualize ESG integration |
| Module 3: Green Finance Products | Applies ESG knowledge to product evaluation |
| Module 4: Risk Management | ESG factors feed into climate risk assessment |
| Module 5: Green Reporting | ESG metrics form the basis of sustainability reporting |
ASEAN Adaptation Notes#
Local Customization Required
Each ASEAN partner should supplement core content with:
- Country-specific ESG regulatory frameworks and disclosure requirements
- Local ESG rating providers and sustainability indices
- Regional greenwashing enforcement cases and regulatory responses
- Country-level impact investing market data and case studies
(c) GREEN FINANCE Consortium 2026