Contents of the subject

The course focusses on selected topics of sustainability reporting and corporate governance. Various Concepts of Sustainability and Sustainability Management will be presented. A focus will be the effect of sustainability issues on various stakeholders. On this basis international approaches of sustainability reporting will be presented (among these GRI, TCFD etc.). A focus will lie on the European rules concerning sustainability reporting (NFRD; EU-Taxonomy, CSRD). New developments will be presented and analysed. Additionally the key challenges in financial, sustainability and integrated reporting will we reflected from an international perspective.

The course presents and analyses the techniques and strategies applied by companies, auditors and institutions in their aim to integrate sustainability and governance issues into their activities. A detailed discussion of the economic need of sustainability concepts with a focus on climate change disclosure will be part of this lecture. A variety of case studies dealing with sustainability and governance issues form the basis of this lecture. The major players in corporate governance will be introduced followed by an analysis of the agency-theoretical foundation of corporate governance. A special focus lies on the wirecard incident and its effects, as example of a non-functioning corporate governance system.

Selected topics are:

•     What is sustainability 
  
  
•     Concepts of sutainability and Stakeholder management

•    Investors – Green Finance

•    Current developments (European Green Deal and EU-Taxonomy)

•    Concepts of sustainability accounting (eg. Supply chain analysis and carbon accounting)

•    Greenwashing, pink washing and its effect

•    Role of the different stakeholders in governance (enforcement, auditors, boards)

•    Wirecard case and its consequences

Qualification aims of the subject

The importance of environmental, social and governance (ESG) issues is increasing constantly.
The financial crisis of 2008, the situation of the environment and the wirecard incident
demonstrate that the traditional approach of financial reporting and management does not meet
the information needs of the various stakeholders anymore. Plus, the public opinion
acknowledges a need for global action on climate change and further sustainability related
matters. In 2014 the European Commission took a lead in driving sustainability by establishing
the Corporate Social Responsibility (CSR)-Directive forcing public interest entites (PIEs) to
analyse their business models and to report separately on environmental, social and governance
issues. In 2019 the European Green Deal was signed aiming at a relocation of the financial flows
to achieve the goals of the United Nation’s 2030 Agenda.

The goal of this course is to introduce the students to concepts of sustainability and their effects on stakeholder and stakeholder management. The focus lies on current developments in sustainability reporting and governance in Europe. The underlying goals and instruments of the the CSR-Directive and the following various actions taken will be assessed and analysed. The effects of these rules on the activities of entities will be considered. Students learn about current corporate governance rules and systems and the problem of their enforcement.

After attending this course students will have acquired the following competencies:

Content oriented learning outcomes:

ILO 1: They have gained an in-depth understanding of the conceptual foundations of sustainability and approaches to sustainability management.

ILO 2: The students will have gained an overview over the elements of corporate governance. They understand and are able to explain the function of the separate players.

ILO 3: They are familiar with current European strategies and laws concerning ESG-issues and and are able to analyse critically the individual roles of the different measures taken.

Skill oriented learning outcomes:

ILO 5: They evaluate and choose appropriate methods in complex situations.

ILO 6: They know how to present their findings orally in front of a large group. 

Applicability of the subject

Preparation for the master's thesis. All Masterprograms of FB I

The nature of the examination / requirements for the award of credit points

Written assignment: group written assignment (4000 – 6.000 words, 75%), and the group
presentation of the assignment in class (25%)

Retake examinationsWritten assignment (WA) 4.000 words.

The presentation tests whether students have gained an overview and understanding of concepts of sustainability, sustainability reporting and governance (ILO 1-3). Students acquired the ability to prioritize information, to apply theoretical concepts (knowledge acquired in class) to ”real” problems (ILO 4, ILO 5) and to present own results (ILO 5).

Literature and learning resources

Hahn, Rüdiger: Sustainability Management Global Perspectives on Concepts, Instruments and Stakeholders, Fellbach 2022.

Bini/Bellucci: Integrated Sustainability Reporting - Linking Environmental and Social Information to Value Creation Processes, Cham 2020.

Indicative Reading: Will be announced during class as reading depends on a varying focus

Teaching and learning forms

Seminar, using case studies and presentations by students

At least one guest speaker will be invited.

Participation requirements

Students are required to have basic knowledge of financial reporting rules.