| ECO921 |
Business Environment & Strategy |
5 |
This module is designed better to understand macroeconomic dynamics within the business and the economy. It also offers an understanding of how the business will succeed in a dynamic business environment with competitive strategies. Finally understanding how business decisions are made.
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- ● Macroeconomics:
- Key Macroeconomic Variables and their relevance to Business, Basics on Monetary and Fiscal Policy, India's Economic Environment, Green Banking and Sustainability, Central bank vs Government in Climate Risk Management.
- ● Understanding Open Economy:
- Balance of Payment, Capital and Current Account, Exchange Rate Determination, Business Cycles, International Trade, Environment, and Climate Change: CBAM – Free Trade, WTO Negotiations.
- ● Business Environment:
- Concepts, Internal and External environmental variables, Introduction to Risks - Political, Legal, Environmental, Technological, Reputational Risks.
- ● Strategic Management:
- Environmental Scanning, Industry Analysis, Internal Scanning, Sustainable Value Chain, Product Life Cycle.
- ● Strategy Formulation:
- Business Strategy and Corporate Strategy (climate change), Competitive Tactics and Strategies, Basic types of Strategic Alliances, Portfolio Analysis of Business Units or Products offered by a Company.
- ● Case Analysis:
- Detailed procedure involved in a Case Analysis.
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| ECO922 |
Foundations of Finance |
5 |
To provide a foundational understanding of finance and accounting. The module will prepare the students for advanced knowledge of electives and real-life applications.
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- ● Measuring the Time Value of Money:
- Future and Present Values, Annuities, Perpetuities, Compounding and Measuring Returns, Time Value of Money v/s Sustainability
- ● Risk and Return Analysis:
- Basics of Portfolio Construction, Mean-Variance Framework, Optimal Portfolio Analysis with Riskless Asset, Capital Allocation Framework, Optional Portfolios with Multiple Assets, Riskiness of Portfolio and Types
- ● Fixed Income Securities:
- Bond and its Types, Valuations, Yield Curve and Duration, Green Bonds
- ● Derivatives:
- Mechanics of Futures Markets, Forwards Contracts, Valuations, Options - Payoff structure, Basic Trading strategies using Options, Vanilla Swaps
- ● Basic Accounting of Firms:
- Financial Statements, Income Statement, Balance sheet, Cash flow Statement, Discussion on CSR Funds
- ● Financial Analysis Techniques:
- Financial Ratios - Activity, Liquidity, Solvency, Profitability, and Valuation Ratios, Capital Structure of the Firm, Business Risk and Scenario and Simulation Analysis, Environmental Costs, and Negative Externalities.
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| ECO923 |
Data Analysis in R and Python |
5 |
The stream of climate finance and sustainability requires workable exposure to data analysis skills. This module is designed to fulfill the need for data analysis requirements with balanced exposure to theory and hands-on training in R and Python. Another added feature is to analyze the data based on its nature and composition.
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- ● Introduction:
- Overview: Different types of Data (structured and unstructured), Basic Statistics, and Graphical Analysis.
- ● Introduction to R and Python:
- Introduction to R and Python Environments
- ● Linear Regression:
- Assumptions, Diagnostics, Specifications, and Forecasts
- ● Panel Data Modelling:
- Basics of Panel Data Modelling – Fixed and Random Effects and GMM
- ● Cross-sectional Data Modelling:
- Logit, Probit, Tobit, and other Variants and their Applications
- ● Time-series Modelling:
- Basics of AR and MA, ARIMA Modelling and Forecasts
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| ECO924 |
Introduction to Alternative Finance |
5 |
This module exposes different derivatives products and their valuations. The module will first introduce the products and then analyze them deeply from the perspectives of their nature and investment attributes. Understanding alternative finance is crucial as it helps analyze carbon products efficiently and may also help launch a new product.
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- ● Forwards, Futures & Options:
- Valuations and Cost of Carry Model (seasonal & non-seasonal), Convenience Yield, Spread Arbitrage, Pricing of Forwards for Storable Consumption Commodities
- ● Electricity Derivatives:
- Spot Market of Electricity: DAM, DAC, TAM, Daily-term Ahead Market, Price Discovery Process, Indian Electricity Derivatives Market
- ● Weather Derivatives:
- Spot Market of Electricity: DAM, DAC, TAM, Daily-term Ahead Market, Price Discovery Process, Indian Electricity Derivatives Market
- ● Carbon Derivatives:
- Cap-and-Trade, CER, ERU, and Emission Trading Standards, Switching Prices, Carbon Credits
- ● Freight and Water:
- Functioning of Freight Exchanges, Freight Indexes, and Water Derivatives Valuations
- ● Hedging and Speculation with Futures:
- Types of Hedges, Profit Margin Hedging, Inverse Hedging, Enhancements, Speculation, and Investment Process, Cross-hedge, Tailing the Hedge
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| ECO925 |
Climate Change Finance and Investment |
5 |
The Module aims to provide students with the macro-level knowledge and understanding of principal concept upon which climate change policy is based, a framework on how the global political environment, government and businesses manage the business risk and how to quantify the scale of the challenge in terms of the value of assets at risk and integrating climate risk into investors framework.
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- ● Political Economy of Global Environment:
- Global Firms in International Environmental Politics, Business Power and Business Conflict, Overconsumption v/s Overpopulation Debate, CASE Study on Global Climate Change
- ● Global Climate Environment & Business Risk:
- Global Environmental Policy Norms, Energy Policy, and Climate Change, Trans-national Environmental Activism, Business as a Global Actor, International Negotiations, Corporate Climate Risk - Regulatory, Physical, and Business Risks
- ● Role of Government and Financial Institutions in Adapting Climate Change:
- Introduction to the Governmental Tools and Institutions used to Support Climate Finance Objectives, Mapping International and Domestic Climate Finance and Investment, The role of Public Finance Institutions - Domestic Promotional Banks, Multilateral Development Banks, Export Credit Agencies
- ● Impact of Climate Change on Finance:
- Physical Impacts on Unregulated Sectors, on Carbon-regulated Sectors and Financial Services, Institutional Investors, and their Activism
- ● Climate Finance:
- Determinants of Climate Finance, Climate Policies: Mitigation and Adaptation, Introduction to Clean Energy Finance, Ethical Considerations with National and International Climate Finance
- ● Financial Mechanism and Instruments:
- Economic Instruments for Climate Change (concession finance, blended finance, bonds, guarantees, results-based payments), Climate Risk and Stock Pricing, Pollution Premium, Corporate Risk-taking Behaviour, Risk Management Strategies amid Climate Change Risk
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| ECO926 |
Carbon Pricing, Trading and Markets |
5 |
To provide a theoretical and practical understanding about carbon pricing, trading and markets. The exposure to different carbon trading mechanisms, carbon accounting and carbon offset markets are some of key features of this module.
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- ● Overview of Carbon Pricing:
- Fundamentals of Carbon Pricing, Market Failures, Externalities, Coase Theorem, Carbon Taxes, Carbon Markets, Institutional Topics in Cap-and-Trade International Carbon Markets and Future of Carbon Pricing
- ● Global Carbon Markets:
- Introduction to Climate Meetings – Kyoto and Paris Agreements, CDM, JI and CERs and ERUs, Cap-and-Trade, Global Emission Trading Platforms, EU-ETS, and other Markets, their Comparative Analysis
- ● Voluntary Carbon Market:
- Carbon Accounting- Footprints, Auditing of Carbon, Scopes 1-3 of Carbon Emissions, Carbon Offsetting Mechanism - Supply and Demand, International Offset Mechanisms, Voluntary Carbon Offset Standards – Verified Carbon Standard, Gold Standard, Plan Vivo Standard, American Carbon Registry, SBTi Commitment
- ● Carbon Offset Market:
- Voluntary Offsetting Market, Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and its Traded Instruments, Buying and Selling Offset Credits – Forward and Spot Sales. Global Offset Exchanges – Voluntary Carbon Emissions Offset Futures – Basis Markets
- ● Carbon Border Adjustment Mechanism:
- CBAM and its Operation Rules. Its Impact on Cross-border Trade and Developing and Developed Countries Relations, CBAM and Carbon Leakage and its Impact on Carbon Offset Market
- ● Emission Trading in India:
- PAT Analysis, Escerts and RECs Specifications, Trading of Escerts and RECs on Energy Exchanges. Future Directions of Carbon Trading in India
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| ECO927 |
Introduction to Sustainable Finance |
5 |
This module provides an understanding of current trends of integration of environmental and social criteria in the investment process. It engages in reflections about the potential for impact of different ESG strategies for real economy and environment. Understand and apply key concepts to asset allocation and portfolio analysis using ESG data using available software.
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- ● ESG Materiality and Responsible Investing Approach:
- 3 pillars of ESG Model and Selection of Material ESG Issues, Screening, Thematic and Selecting Responsible Investment Approaches
- ● ESG Ratings and Assessment of Corporates:
- Anatomy of ESG ratings or ESG Score, Characteristics of ESG Indicators and Ratings, Commercial players in ESG ratings, Sustainalytics, MSCI, RepRisk ESG Business Intelligence, Ceres, JUST Capital
- ● Responsible Investment across Different Asset Classes:
- Equities, Fixed Income, Real Estate, Commodity Investments, Mutual Funds, Indices, ESG in Managing Sovereign Wealth and Government Sponsored Funds, Future of ESG Investing
- ● Asset Allocation and Portfolio Analysis:
- Risk and Return Assessment for ESG Portfolios, Asset Allocation and Portfolio Analysis, Concept, and Application of Diversification and Hedging, Comparison of ESG Portfolios and Conventional Portfolios
- ● Sustainability and Asset Pricing:
- Sustainable CAPM, ESG Integration in Value, Momentum, and Growth Factors
- ● Sustainable Blue Economy:
- Taxonomy of Blue Economy Sectors and Activities, Blue Economy and Small Countries and Coastal Population, CASE on "Impact of climate change on Blue Economy of the Indian Ocean Region"
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| ECO928 |
Sustainable Reporting and Disclosure Practices |
5 |
The module provides a strategic and technical understanding about the sustainability reporting practices followed worldwide
with the focus on social, environmental and governance reporting standards. This will prepare the students to evaluate the real world cases and transition that businesses are making towards sustainability.
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- ● Introduction to Sustainability:
- Meaning, Scope, TBL, CSR to ESG
- ● Sustainability Reporting Framework:
- Drivers to Sustainability Reporting, GRI, UN Global Compact Principles of Responsible Investing, Integrated Reporting Practices
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● Legal Framework, Conventions, and Treaties:
- Brundtland Commission
- Kyoto Protocol
- Bali Roadmap
- UN Conference on Sustainable Development
- UN Paris Agreement
- COP26
- COP27
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● Concept of Circular Economy:
- 10 R’s
- Steps towards a Circular Economy
- Principals for Circular Economy
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● Concept of Environmental, Social and Governance:
- ESG Disclosures and its importance
- Greenwashing
- ESG Reporting Frameworks
- Comparison of ESG, SRI and Impact Investing
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● Case Analysis:
- Welspun India Limited: A Sustainability Journey
| ECO929 |
Machine Learning for Climate and Carbon Finance |
5 |
To provide a practical exposure to machine learning techniques including supervised, unsupervised, and deep learning models for climate finance and clean energy big data analysis.
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● Fundamentals of Bonds:
- Basic Terminologies of Bond Markets, Par Value, Discount, Premium, Maturity, Coupon Interest Rate
- Operations of Conventional Bonds, Yield to Maturity, and Collateral
- Interest Rate Risk, Credit Risk, and Credit Spread
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● Fundamentals of Green Bonds:
- Green Bond Basics: Current State of Play, The Sustainable Debt Market
- Green Bond Definitions, Green Bonds Taxonomy & Classification Systems
- Green Bond Policy Landscape
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● Green Bond Pricing:
- Basics of Yield Curve, Green Bonds Pricing in the Primary Market
- Spread Compression, Greenium, On the Curve, New Issue Premium
- Secondary Market Analysis – Vanilla Spread, Vanilla Average
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● Green Bond Market Development:
- Global and Regional Development, Sovereign Green Bond Evolution
- Benefits, Impact, Transition Finance, International Benchmark
- Relevant Case Studies
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● Green Loans & Green Microfinance:
- Fundamentals and Mechanism, Benefits and Valuations
- Principles, Assessment of Green Microfinance
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● Sustainable Debt Market in India:
- Social & Sustainability and Sustainability-Linked Bonds
- Sectoral Overview of Green Bonds, ESG Funds
- Taxonomy, Reporting and Regulatory Ecosystem, Current Outlook
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| ECO930 |
Green Bonds – Pricing and Valuations |
5 |
The aim of this module is to provide an in-depth understanding about the green bond markets and their associated dimensions in the primary and secondary markets. The sustainability and sustainability-linked bonds, green loans, and green microfinance are some of the highlights of the module.
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● Fundamentals of Bonds:
- Basic Terminologies of Bond Markets, Par Value, Discount, Premium, Maturity, Coupon Interest Rate
- Operations of Conventional Bonds, Yield to Maturity, and Collateral
- Interest Rate Risk, Credit Risk, and Credit Spread
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● Fundamentals of Green Bonds:
- Green Bond Basics: Current State of Play, The Sustainable Debt Market
- Green Bond Definitions, Green Bonds Taxonomy & Classification Systems
- Green Bond Policy Landscape
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● Green Bond Pricing:
- Basics of Yield Curve, Green Bonds Pricing in the Primary Market
- Spread Compression, Greenium, On the Curve, New Issue Premium
- Secondary Market Analysis – Vanilla Spread, Vanilla Average
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● Green Bond Market Development:
- Global and Regional Development, Sovereign Green Bond Evolution
- Benefits, Impact, Transition Finance, International Benchmark
- Relevant Case Studies
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● Green Loans & Green Microfinance:
- Fundamentals and Mechanism, Benefits and Valuations
- Principles, Assessment of Green Microfinance
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● Sustainable Debt Market in India:
- Social & Sustainability and Sustainability-Linked Bonds
- Sectoral Overview of Green Bonds, ESG Funds
- Taxonomy, Reporting and Regulatory Ecosystem, Current Outlook
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| ECO931 |
Financial Modelling to Clean Energy Products |
5 |
Understanding the basic tenets of equity and financial derivatives required tools. This course is designed to provide an in-depth understanding of the tools and techniques necessary for analyzing the financial data of different frequencies.
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● Overview:
- An overview of Clean Energy Finance and its Investment Attributes
- Significance of Statistical Modelling with Conventional Equities and Other Alternative Assets
- International Clean Energy Indices and their Trading Attributes
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● Dynamics of Clean Energy Equities:
- Fundamentals of Clean Energy with Crude Oil and other Energy Products
- Technology Stocks, Green Bonds and ESG Ratings
- Calculation of Systematic and Non-systematic Risk of Clean Energy Equities
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● Price Discovery Process:
- Modelling Cointegration Process, Market Integration and Relational Analysis
- Price Discovery in the Commodities Derivatives Market
- Applications in offset Products
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● Risk Management in Energy Products:
- Methods to Calculate Time-Varying Volatility, Univariate and Multivariate Setup
- Calculation of Dynamic Portfolio Weights and Hedge Ratios
- Volatility Spillover Analysis, Green Bonds vs Conventional Bonds
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● Modelling Multivariate Setup:
- Introduction to Multivariate Time-series Models and Estimation of Causal Inferences between Green Bonds and Energy Products
- Interactions with Economy-specific Fundamentals
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● Firm-level Analysis:
- Firm-Level Analysis, Data Curation and Modelling
- Application of Panel Data Models, Time-Series and Cross-Sectional Validations
- Case Studies
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| ECO932 |
Project - I |
5 |
To provide a practical and applied exposure to the covered module. Students will be encouraged to formulate a research problem and submit a report.
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Capstone Project
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