Course Topics
In the past decade, there has been a significant increase in attention towards environmental, social, and governance (ESG) issues among managers, investors, regulators, and various stakeholders. This heightened interest is evident in the adoption of ESG-related disclosure mandates worldwide and the expansion of sustainable investing within global capital markets. This course aims to provide students with an in-depth exploration of sustainability reporting considering this growing emphasis on ESG dimensions. Through this course, students will delve into the fundamental concepts and tools of sustainability accounting and reporting. They will examine the potential advantages for firms that disclose ESG information while also grappling with significant challenges, including the risk of greenwashing. Furthermore, students will gain insight into the existing and emerging ESG regulations and frameworks governing ESG performance metrics. The focus will be on the EU Corporate Sustainability Reporting Directive (CSRD), as well as concurrent ESG standard-setting initiatives worldwide (e.g. Global Reporting Initiative, IFRS International Sustainability Standard Board and Task-related Task Force on Climate-Related Financial Disclosures). Through case studies and practical examples, students will learn how ESG factors are incorporated into financial statements and how these disclosures influence investment outcomes. Engaging with these topics will enable students to develop a hands-on understanding of the complexities surrounding ESG reporting and its implications for corporate behavior and different market participants. Here a detailed list of topics: • Evolution and current landscape of sustainability/ESG accounting and reporting: - The role of sustainability/ESG accounting and reporting in sustainable finance: regulatory and market-based drivers - ESG reporting standards: latest developments in EU (CSRD/ESRS) and main international frameworks (GRI, IFRS, TCFD, TNFD, Integrated Reporting) - Double Materiality assessment and interoperability across ESG reporting standards: theory and practice • Carbon management and carbon reporting: - international greenhouse gas (GHG) measurement protocols across Scope 1, 2 and 3. - international GHG disclosure best-practices • Management accounting and control for ESG/sustainability: - the role of ESG-related incentives in executive compensation ESG/Sustainability in internal control and corporate governance systems • Assurance engagement in relation to ESG/sustainability reporting: current auditing standards (ISAE3000) and future developments (ISSA5000) • Integration of ESG/sustainability information in investment decision-making processes: current developments/challenges in responsible/impact investing and sustainable finance

Teaching format
The course integrates in-class explanations of background material with problem-solving sessions and real-world cases. Case analysis, presentations, and interactive discussions serve as the primary teaching methods employed. Active participation in class activities is expected from students, providing them with opportunities to apply theoretical concepts to real-world business cases.

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 – Knowledge and Understanding: ILO 1.1 Knowledge of economic-financial communication to stakeholders in national and international contexts. ILO 1.2 Understanding of business models and performance measurement for planning and management control, as well as internal and external auditing methods and models. ILO 2 – Applying Knowledge and Understanding: ILO 2.1 Ability to analyse and solve complex problems in national and international interdisciplinary contexts. ILO 2.2 Ability to develop and integrate the results of economic-financial communication into corporate decision-making models. ILO 3 – Making Judgements: ILO 3.1 Ability to apply acquired knowledge to make managerial and operational decisions and to solve problems related to administration and finance in companies, intermediaries, and financial markets, while jointly considering multiple analytical perspectives, from economic to legal, financial, strategic, and managerial. ILO 4 – Communication Skills: ILO 4 Ability to communicate effectively, both orally and in writing, the specialised content of individual disciplines, using different registers depending on the audience and the communicative and educational purposes, and to assess the educational impact of such communication. ILO 5 – Learning Skills: ILO 5.1 Ability to develop general models based on the phenomena studied

Assessment
After completing this course, students should be able to critically discuss the assumptions underlying sustainability in organizations and the role of accounting and reporting of ESG information. The practical orientation of the course allows students to navigate the dynamic intersection of sustainability accounting, responsible investing, and corporate governance in today's global financial landscape. The course encourages experiential learning by promoting reflection on the way ESG/sustainability information is disclosed in corporate reports. Students should further be able to demonstrate an awareness and understanding of the broad nature of sustainability accounting and accountability developments and rationales, united to the ability to conduct teamwork. The course also provides transferable skills such as time management and the ability to communicate clearly and confidently in oral and written form. (ILO assessed 1-5)

Evaluation criteria
Attending students: • Presentations, assignments/group project work, optional Midterm • Final written exam: combination of multiple-choice questions and open/essays questions Non-attending students: • Final written exam: combination of multiple-choice questions and open/essays questions

Required readings

The course literature comprises a set of ESG-related academic articles, book chapters, standards/frameworks, examples of recent corporate ESG/Sustainability reports, and lecture slides.

The list of required readings for exam preparation is announced by the beginning of the course.

Supplementary readings

Supplementary readings will be provided during the course.

Further information
The OLE course page is announced at the beginning of the course.