Module 1: Green Finance: Fundamentals and Building Blocks
ULBS Lucian Blaga University of Sibiu
What is published today
The module description, the six topics and the learning outcomes below. The teaching material, slides, companion readers and worked examples, is written by Lucian Blaga University of Sibiu under Work Package 3 and is not published yet. Module 4 shows what a finished module carries, free to use under CC BY 4.0, and the curriculum index holds all five.
The October week in Twente teaches this module: Thursday 15 October, 09:30 to 12:30, RA 4231, led by Lucian Blaga University of Sibiu. The week in full.
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
- Analyse 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.”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
2. ESG Data Providers, Ratings, and Quality Assessment
Pedagogical arc: “Not all ESG scores are equal: understanding rating divergence is essential for practitioners.”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
3. ESG Integration Strategies for Investors
Pedagogical arc: “From negative screening to full ESG integration: choosing the right approach for different mandates.”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
4. Impact Investing and Additionality
Pedagogical arc: “Impact investing demands more than avoiding harm: it requires proving that capital makes a measurable difference.”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
5. Greenwashing: Detection, Prevention, and Regulation
Pedagogical arc: “Greenwashing erodes trust in sustainable finance; regulators are responding with hard enforcement.”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
6. ASEAN ESG Landscape and Emerging Market Challenges
Pedagogical arc: “How do ESG challenges differ in emerging ASEAN markets?”
The Foundation, Intermediate, PhD Research and Quantitative Lab tiers, the ASEAN case study and the reading list for this topic are to be supplied by ULBS during WP3.
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.
How this connects to the 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 |
What changes for ASEAN
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