USTAINABILITY AND FINANCE

Answer the below questions IN YOUR OWN WORDS. Do not copy or rephrase
passages from the text or websites. Do research to get information you need (e.g. Google,
Google Scholar, PSU library online). Cite your sources either in the text or in a list of
references at the end of your assignment.

You should write at least 3 pages (font: 12;spacing: 2).

1) Define “sustainable finance” and give an example of how a company can be more
sustainable in investment or financing decisions. Why is it important for
companies to adopt sustainable practices in general? Explain. (3 points)

2) What are environmental, social or governance (ESG) risks? Give an example for
each. Take one of the companies you analyzed in HW 1. Which environmental,
social or governance (ESG) risks could this company be facing at the moment or
in the future? Explain. (5 points)

3) Considering all your knowledge of investment and financing, how should the
corporate finance department of the company discussed in 2) address these ESG
risks? Give at least one example. (2 points)