Master of Management Studies (M.M.S) Climate Risk and Sustainable Finance Syllabus - Mumbai University 2026

Course objectives

• 1 To familiarize students with foundational concepts and strategic implications of climate risk.
• 2 To equip students with analytical skills to assess and manage climate-related financial risks.
• 3 To foster understanding of sustainable finance practices, ESG criteria, and impact investing.
• 4 To develop practical abilities to integrate climate risk assessment into financial decision-making.
• 5 To cultivate insights into regulatory frameworks, global standards, and innovative approaches to sustainable finance

Course outcomes

• CO1: Understand the fundamentals of climate change, its economic impact, and the financial risks it poses
• CO2: Analyze the role of financial institutions and global policies in climate mitigation and sustainable development
• CO3: Evaluate ESG frameworks, investment strategies, and the regulatory landscape influencing sustainable finance
• CO4: Apply tools and instruments such as green bonds, carbon pricing, and climate risk management in financial decision-making
• CO5: Assess real-world cases, innovations, and emerging trends in climate risk and sustainable finance with relevance to India

Unit 1 CO1 · 3 hours

Introduction to Climate Change and Financial Implications ● Basics of Climate Change and Global Warming ● Impact of Climate Change on the Economy and Financial Markets ● Climate-Related Financial Risks: Physical and Transition Risks

Unit 2 CO2 · 3 hours

Role of Financial Institutions in Climate Action ● Financial Institutions in Climate Mitigation and Adaptation ● Climate Change Policy Landscape: National and International Perspectives ● Key Global Agreements: The Paris Agreement, SDGs, and COP Summits

Unit 3 CO3 · 3 hours

Evolution of Sustainable Finance ● Sustainable Finance: From CSR to ESG ● Understanding ESG (Environmental, Social, Governance) in Finance ● ESG Integration in Financial Decision-Making

Unit 4 CO3 · 3 hours

ESG Reporting and Regulatory Frameworks ● ESG Metrics, Reporting, and Disclosure Standards (TCFD, GRI, SASB) ● Regulatory and Policy Developments: SEBI, RBI, EU Taxonomy, and IFRS Sustainability Standards ● Corporate Governance and Climate-Related Disclosures

Unit 5 CO3 · 3 hours

ESG Investment Strategies and Risk Assessment ● ESG Investment Approaches: Screening, Thematic Investing, and Impact Investing ● Role of Central Banks and Supervisory Authorities in Sustainable Finance ● ESG Risk Analysis and Due Diligence in Financial Institutions

Unit 6 CO4 · 3 hours

Financial Instruments for Sustainable Finance ● Green Bonds, Social Bonds, and Blue Bonds: Market Trends and Case Studies ● Carbon Markets and Carbon Pricing Mechanisms ● Blended Finance and Public-Private Partnerships (PPPs)

Unit 7 CO4 · 3 hours

Role of Development Banks and Risk Management in Climate Finance ● Role of Development Banks and Multilateral Agencies in Climate Finance ● Risk Assessment Tools for Climate Finance ● Sustainable Lending and Green Credit Policies

Unit 8 CO4 · 3 hours

Climate Risk Management in Financial Institutions ● Climate Stress Testing and Scenario Analysis ● Incorporating Climate-Related Financial Risks into Risk Management Frameworks ● Portfolio Alignment with Net-Zero Goals: Strategies for Banks and Investors

Unit 9 CO5 · 3 hours

Case Studies and Practical Insights on Climate Risk ● Climate Risk Assessment in Asset Pricing and Valuation ● Case Studies on Climate Risk in Banking and Investment Management ● Role of Insurance and Reinsurance in Managing Climate Risks

Unit 10 CO5 · 3 hours

Emerging Trends and Innovations in Sustainable Finance • Technological Innovations in Green Finance: Blockchain, AI, and IoT • Natural Capital and Biodiversity Finance • The Future of Climate Finance in Emerging Markets • India’s Green Finance Roadmap and Net-Zero Commitments • Transition Finance and Just Energy Transition Strategies

Textbooks

• 1 Sustainable Finance: Using the Power of Money to Change the World, Hermann Falk, Springer, 1st Edition (2022)
• 2 Sustainable Finance and ESG Investing, A. Arjaliès, J.-P. Reiter, Routledge, 1st Edition (2020)

Reference Books / Texts

• 1 Climate Finance: Theory and Practice, Anil Markandya, Ibon Galarraga, Mikel González-Eguino, World Scientific, 1st Edition (2017)
• 2 Handbook of Green Finance: Energy Security and Sustainable Development, Jeffrey Sachs, Wing Thye Woo, Naoyuki Yoshino, Springer, 1st Edition (2019)
• 3 Greening India’s Financial System, FICCI and Climate Policy Initiative (CPI India), Industry Reports.