COURSE SYLLABUS
Sustainable Investing I
Fall Term 2009
Wednesdays 6:15-8PM
Nov 18, Dec 2, 9, 16, 23
Instructor: Cary Krosinsky, Trucost
ck2476@columbia.edu
CERC – Schermerhorn Extension, Columbia University
Background: Sustainable investing is a burgeoning investment philosophy which
represents a different, positive methodology, one that is in sharp distinction from the
previous generation of socially responsible practices, which tended to be more negative.
This course will provide a walk through the performance analysis and metrics involved
with this growing practice, especially as it pertains to financial measurement of
environmental factors. Through the course of the class, students will actively participate
in the creation of a model sustainable portfolio, while reviewing closely, how
sustainability affects all asset classes, regions and public policy. Guest speakers to be
included throughout the course as available. Speakers will include contributors to the
main text for the course, as co-edited by the instructor, Sustainable Investing: The Art of
Long Term Performance. Additional materials to be distributed, including Newsweek’s
forthcoming Green Rankings, Trucost reports on the Carbon Intensity of the S&P 500
companies, carbon portfolio scenario analysis and more. Additional guest speakers to
include CSR/Sustainability officers from leading corporations, experts on fiduciary duty,
shareholder advocacy & corporate governance, as well as fund managers and other
practitioners.
Lecture topics & readings
Week 1 – November 18 - Introduction/setting the framework
Why from an environmental governance standpoint, sustainability is now essential for
investors & public companies alike – examples of existing metrics, as well as
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Brief history of the 11 strands of Socially Responsible Investing
How Sustainable Investing has evolved from the first waves of SRI that primarily
encompassed divestment from South Africa, screening out alcohol, tobacco &
firearms
Overview of the textbook and discussion of the subsequent paper that will have
been presented on the subject to the UN PRI Academic Network event in Carleton
on October 1-3, 2009 http://www.unpri.org/academic09/agenda.php
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Setting the framework for the underlying project to run through Spring 2010 –
building a maximally sustainable portfolio interactively with students – results to
be shared and discussed with the Ethical Finance class being taught
simultaneously at University of Nottingham
Initial assignments to be provided
Week 2 – December 2 – Equity – The Corporate Perspective
Guest Speaker – Dave Stangis, Campbell Soup
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How do leading corporations present sustainability as a positive force
What has been the response from investors, and what is expected in future
What expectations do corporates expect internally and what can corporates hope
to achieve themselves as thought leaders on the subject
Sustainability as a risk factor – how do companies measure themselves –
Sustainability 2.0 framework
Reviewing case studies of corporate efforts in Sustainability
What opportunities will present themselves to students
How this all factors into the model portfolio
Assignments & Readings to be distributed
Week 3 – December 9 – Sustainable Investing – Metrics & Practioners
Guest Speakers – Dr. James Salo, Trucost, Alex Lamb, KLD, Mark Fulton, DB
How environmental sustainability is and can be factored into decision making – what is
relevant and material, how companies have been and will be measured in the future – preCopenhagen 2009 consideration for investors
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Presentation of Newsweek Green Rankings – methodologies used
Reviewing Columbia’s endowment holdings & practices
Copenhagen 2009 commences on December 6 – discussion of bills that may have
come from US Congress, or that shortly will do, and how that will affect investing
Water, Waste, Pollution & Equity
Alternative Energy Investment
How this all factors into the model portfolio
Opportunities for related jobs going forward for students
Assignments & Readings to be distributed, including Student Presentations to
Class
Week 4 – December 16 – The Other Asset Classes
Guest Speaker – Stephen Viederman, Christopher Reynolds Foundation
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The Evolution of Fiduciary Duty & how it is evolving with Sustainable Investing
in mind
Private Equity, and why Sustainability has become essential – creative solutions
in this space including Blue Wolf, KKR, Uhuru
Green Real Estate & implications for investors
The Global Perspective – Emerging Markets & Sustainability
Fixed Income, Microfinance, Carbon Trading, Social & Community Investing
What opportunities will present themselves to students
How this all factors into the model portfolio
Assignments & Readings to be distributed
Presentations to Class
Week 5 – December 23 – Wrapping Up
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Examination of the model portfolio to date (to be continued in more detail in the
advanced course in Spring 2010)
Final student presentations
Post-Copenhagen review & expectations and how this factors into the continued
evolution of Sustainable Investing including carbon valuation scenarios
The role of Civil Society
What opportunities will present themselves to students
How this all factors into the model portfolio
Preview of Spring 2010 – advanced portion of the course, which will include a
more detailed analysis of Post-Copenhagen implications, including Carbon
Trading & Arbitrage, how to avoid what is being called a possible “subprime
carbon” crisis, RED, detailed sustainability analysis techniques & methods
including further guest speaker practitioners, interaction with Ethical Finance
students & teachers at University of Nottingham, environmental modeling &
investing and more
Optional Papers & Independent Study projects (to be discussed)
Grading – Pass/Fail
33% Attendance & Active Participation
33% Assignments
33% Student Presentations to Class – minimum 10 minutes
Additional Resources:
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UN PRI www.unpri.org (includes UN PRI Academic Network)
Trucost Plc www.trucost.com
Earthscan www.earthscan.co.uk
Investor Network on Climate Risk www.incr.com
Pew Center for Global Climate Change www.pewclimate.org
Environmental Defense Fund www.edf.org
World Wildlife Fund www.wwf.org
Instructor Bio
Cary Krosinsky is Vice President for Trucost in North America, who have built &
maintain the world's largest database of carbon emissions & other environmental impacts
as generated by the world's largest public & private companies. This data & expertise is
used by leading global fund managers and asset owners to manage carbon risk.
Mr. Krosinsky recently co-edited and wrote the book Sustainable Investing: The Art of
Long Term Performance with Nick Robins of HSBC, and a subsequent paper has been
presented at the UN PRI Academic Conference at Carleton University on October 1-3,
2009.
He was a member of the Expert Group that created the UN’s Principles for Responsible
Investment (PRI), and is an Advisory Board member of the Association of Climate
Change Officers (ACCO) and founder director of InvestorWatch.