What Is Sustainable Finance and Why Is It Important for Students in Business School?

Sustainable finance refers to financial activities that take into account environmental, social and governance factors. Businesses use these factors as a means of promoting sustainable economic growth and the long-term stability of the financial system. According to the Responsible Investor, banks, investors, and companies are all turning towards a commitment to these important factors, which drive sustainability in the industry.

This is an undoubtedly exciting time in the finance world. At WU Executive Academy, students learn up-to-date management and leadership tools and techniques to help them succeed in the globalized field of finance. Continue reading to learn more about how that field is evolving, as well as the role that sustainable finance plays within it.

Green Investing Basics for Business School Students

Our business school offers students the perfect passport into the global business community, as they forge valuable connections with classmates from a wide variety of business backgrounds all over the world. If you’re looking to pursue a finance MBA, you can expect to study the valuation and management of fixed income instruments, portfolio management, and asset allocation.

After graduation, you may encounter or get involved with green investing, which simply refers to the deployment of capital, whether from individuals or institutions, primarily to foster economic activity without also causing environmental harm. Investors show their support for a more sustainable future by holding their funds with greener options that reduce climate risk.

Defining Sustainability in the Finance Industry

When earning your MBA in finance, it is important to note that individuals have different definitions of sustainability. Small changes may seem like enough effort for some, while others may feel they can never be sustainable enough.

Although there is no legally binding definition that makes a company or an investment opportunity “green,” the industry is beginning to see some consistency with regards to certain standards that are being followed. Many investors and borrowers use a voluntary guideline mapped out by the International Capital Market Association (ICMA) called the Green Bond Principles.

Through the international residencies offered in many MBA programs, students get the opportunity to experience a diverse range of business cultures and practices in key markets, including the USA, China, India, and Russia. Hands-on experience with these key markets will help you develop an even deeper understanding of how different areas of the world define sustainable finance.

Changing the Future of Business Finance Through Sustainability Efforts

WU Executive Academy’s corporate partners regularly look to the university to find talented executives for top-level positions, providing MBA students with a number of potentially life-changing employment opportunities. With their education and experience, graduates of our finance program have the opportunity to shape the future of corporate finance.

WU Executive Academy makes sure that every student is supported through career support services, helping students during their studies and beyond as they pursue their dream career. Leading the way towards a greener future starts with WU graduates, and experience with behavioral, computational, and corporate finance prepares them to make the impact they desire for a brighter future.

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