MSc IN SUSTAINABLE BUSINESS, ENERGY AND FINANCE

SUSTAINABLE BUSINESS FOR TOMORROW’S SUCCESS STORIES

Three equations about why it matters:

Nature + technology + regulation = prosperity

Nature + technology - regulation = plunder

Nature + regulation - technology = hunger

Professor Paul Collier Oxford University"The Plundered Planet" (2010)

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Page 4 MSc in Sustainable Business, Energy and Finance

Page 5 Possible careers for our students

Page 6 Resource economics

Page 7 Sustainable Development

Page 8 Quantitative Research Methods

Page 9 Global Environmental Governance

Page 10 Computational Finance for Energy

Page 11 Energy Scenarios for Business Planning

Page 12 Sustainable Business, Energy and Finance Dissertation

Page 13 About CIBS Doctoral Training Programme

Page 14 About CIBS

Page 15 Contact

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CONTENT

We live in a new era, in which concerns abouthuman-induced climatic change and challenges to sustainability have become major factors inbusiness thinking. The aim of the MSc is to provideour students with first-class knowledge of actualand likely changes in the nature of the businessenvironment, so that on completion they will beable to influence the strategic direction of the businesses and organisations that employ them.They will be able to formulate a worldview that incorporates the new imperatives.

Developed by the Centre for International Businessand Sustainability (CIBS), the MSc comprisesseven modules, which between them offer state ofthe art knowledge of the theory and practice of sustainable business paradigms. In addition, theMSc introduces students to a range of analyticaland modelling tools, and conceptual frameworks,in order to apply knowledge and assess risk. Thisrequires students to be comfortable with basic undergraduate mathematics and statistics, as wellas what lessons history can teach us. Unique tothis degree, the application modules focus upon an Energy-Economy-Environment-Investment framework.

MSC IN SUSTAINABLE BUSINESS, ENERGY AND FINANCE

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> Business Analysis

> Business Planning

> Business Strategy

> Energy Economics

> Environmental Economics

> Energy Trading

> Market Research

> Modeling energy prices

> Quantitative Analytics

> Risk Management

POSSIBLE CAREERS FOR OUR STUDENTS

OverviewThis module has been designed for students whowish to understand the broad historical context,economic fundamentals, and rationale that underlie environmental and energy policies.

Module contentHowever urgent the new imperatives may be, action on energy and environment policies has tostart from where we are, which is with the currentlydominant economic paradigm. The module reviewsthe key concepts that make up this paradigm, suchas rational choice and resource allocation, and thephilosophy on which it is built, and notes a few exceptions to its sphere of influence. The modulefurther examines the efficiency of free markets andvarious cases of market failure. In particular, themodule takes a close look at the problems of over-exploitation caused by what has been called ‘the

tragedy of the commons’, and with this the natureof public goods. In order to find solutions to theseissues, the module goes beyond the standard economic paradigm and examines alternativetheories.

Module questions Why is it thought that the perceived threat of global warming can be solved by means of carbon trading? What are the conditions required for thisto happen? How can the concept of the tragedy of the commons help us come to an understandingof natural resource exhaustion? Are economic solutions to this issue achievable? Can altruismsave the world – what does past experience suggest? What happens to economic solutionswhen the idea is mooted that decisions and decision-makers are not entirely selfish and self-centred?

RESOURCE ECONOMICS

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OverviewThere is a growing awareness of environmentaldegradation and the potential unsustainability of societal welfare. The resulting regulatory andenvironmental momentum has intensified so muchthat many see a ‘sustainability revolution’, with theaccompanying challenges and opportunities to governments, industry, academia, and personalgoals and lifestyles. However, what exactly is thesustainability problem and what might be thedrivers of unsustainability? This module exploresthe issue of sustainability both in general termsand in the context of particular concerns such as potential climate change and the reduction of bio-diversity. The focus is on the uses of economicanalysis in investigating the causes, consequencesand possible solutions to problems of environmentaldegradation.

Module contentBeginning with discussions of the positive and normative aspects of the debate on sustainabilityand the various potential drivers of unsustainability,the module covers a range of particular issues.These include: the pros and cons of alternative policy instruments in pollution management; the rationality of current policies and measures; alternative methods for valuing environmental resources and environmental damage; the mainarguments in the debate on the science, implica-tions, and economics of climate change; and thepractical steps organisations may take to changetheir mode of operation to curtail damage to theenvironment.

SUSTAINABLE DEVELOPMENT

OverviewResearch Methods introduces you to various analytical tools essential to a quantitative approachto research. This module is shared with students studying for an MSc in Economics.

AimsThe module aims to provide you with an under-standing of the fundamental mathematical andeconometric methodology and tools of analysisemployed in theoretical research and empiricalanalysis.

Content> Review of Matrix Algebra: transpose, inversion,

solving systems using matrix inversion, matrix rank, eigenvalues and eigenvectors

> Differental calculus and logarithms> The Linear Regression Model: Ordinary Least

Squares estimation and testing hypotheses> Regression analysis with Eviews> Mispecification testing: autocorrelation, linearity,

normality, heteroscedasticity and ARCH> Dynamic modelling I: autoregressive distributed

lag error correction models; the general to specific methodology; equilibrium

> Dynamic modelling II: nonstationary series, integration and cointegration (Engle and Granger method and the Johansen procedure)

> Pooled time series and cross sectional data: pooled OLS, fixed effects and random effects models

QUANTITATIVE RESEARCH METHODS

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OverviewMany argue that the crisis of sustainability is a crisis of governance. Stemming the tide of naturalresource depletion, environmental degradation,and loss of biodiversity requires an urgent revisionof global, national, and local decision-making mechanisms. In this module, we critically evaluatethis contention, and the prospects for effective global environmental governance. We explore and evaluate the legal, corporate, ethical, and financial aspects of this important issue.

Module contentGlobal environmental governance is a multidisci-plinary subject. In the module, we will draw on theresources of politics, economics, philosophy, andlaw to explore a range of critical issues: climatechange, international law and trade, individual andcorporate responsibilities, and the important role of finance.

Example of topics> Attitudes, Behaviour and Environmental

Citizenship> Climate Change Management> Corporate Social Responsibility> Global Environmental Governance and Finance> Global Environmental Governance and Global

Ethics> International Law and Trade

GLOBAL ENVIRONMENTAL GOVERNANCE

OverviewThis module is designed to introduce students tomethods of modelling energy commodities and derivatives and equip them with the most up-to-date quantitative tools. On completion students will have a clear understanding of how to manageportfolio risk, trading and decision making.

The module will focus on the underlying commo-dity availability and price process that determinesthe prices of energy derivatives, the type of energy derivatives on the market, and the manner in which they are traded.

Module contentModeling and calibration of energy price processes – GARCH processes, specific jump-diffusion processes with deterministic intensities for mean reversion levels where applicable, Markov chains and regime switching models.

The “futures-spot spread” model: Do these prices provide direct information about investors’ expectations about the future price of oil?

COMPUTATIONAL FINANCE FOR ENERGY

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OverviewMost executives know that conceiving future scenarios is fundamental to the competitivenessand survival of their organisation. Students aregiven first-hand knowledge of energy scenarioplanning, first developed by Shell, using real-world case studies and agent-based modelling and simulation methods. The building blocks ofscenario planning include geo-political, economic,financial, social and individual factors as they develop over time.

ContentThe module introduces students to a new standardof explanation of the past and the present andthrough this a new method to structure the un-certainties of the future. The key aim is to showhow time series data can be used to develop a relevant set of plausible scenarios as a criticalplanning and decision-support tool.

Example of topics that will be deliveredThe art of scenarios; building blocks for scenariodevelopment; past scenarios: the Shell experience;scenarios and computer simulations; current sce-narios using ACEGES; writing decision scenariosfor the executive board.

ENERGY SCENARIOS FOR BUSINESS PLANNING

OverviewThe dissertation provides students with the oppor-tunity to develop a research topic based upon a research question they formulate for themselves,but which is pertinent to an aspect of sustainablebusiness developed in the course. Between 10-20,000 words in length, the dissertation carries60 of the 180 credits necessary for the award of an MSc.

AimThe module requires students to design indepen-dently a research project in which they demon-strate knowledge of the pertinent literature, andpresent, analyse and discuss their findings in acoherent and professional manner.

SupervisionIn the semester prior to starting the dissertation, students are required to register their title with thecourse leader, together with a brief proposal of nomore than 1,000 words, detailing methods andsources. The course leader will then appoint a supervisor to support their research activities.

Dissertation InternshipsWe are hopeful that a number of students will get internships in businesses associated with the MSc in order to produce a company-based, but never-the-less independent, dissertation.

SUSTAINABLE BUSINESS, ENERGY AND FINANCE DISSERTATION

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Upon completion of the MSc studentscan apply to join the CIBS DoctoralTraining Programme and develop a research thesis in one of four areas:

> Climate Change and Environment> Energy and Investment> Ethics and Philosophy> Governance and Policy

… involving one or more of four global transformations:> Drivers of societal change> Drivers of sustainable development> Financial and Economic Systems> Technology and Innovation

For a profile of the students and their supervisorsvisit our website at http://www.londonmet.ac.uk/lmbs/ research/cibs/team.cfm

The CIBS Doctoral Programme is an important aspect of the work of the centre. Our intention is to further develop the programme through collaboration with businesses associated with the centre and the MSc.

ABOUT CIBS DOCTORAL TRAINING PROGRAMME

About CIBSBusinesses and organisations around the worldface challenges that defy conventional thinking and analytical approaches. Based in London Metropolitan Business School (LMBS), the Centreof International Business and Sustainability (CIBS)contributes a distinctive voice by bringing togetherresearchers from economics, econometrics, com-putational economics, policy analysis, strategy and ethics to examine the changing business environment.

CIBS offers:> Technical Expertise, particularly the development

of decision-support tools based upon the 'Environment-Energy-Economy' and 'Energy-Economy-Investment' frameworks

> Evidence-based Research for policy makers and practitioners

> MSc. Sustainable Business, Energy and Finance> CIBS Doctoral Training Programme based upon

the CIBS core research areas

For more information on the centre, please look at our website http://www.londonmet.ac.uk/lmbs/research/ cibs/cibs_home.cfm.

ABOUT CIBS

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CIBSCentre for International Business and SustainabilityLondon Metropolitan Business SchoolLondon Metropolitan University84 MoorgateLondon EC2M 6SQ, UK

Course leaderDr Craig Duckworth Email: c.duckworth@londonmet.ac.uk

Director of CIBSProfessor John SedgwickEmail: j.sedgwick@londonmet.ac.uk

Deputy Director of CIBS Dr Vlasios Voudouris.Email: v.voudouris@londonmet.ac.uk

The teaching team is:Dr Craig DuckworthDr Gherardo GirardiDr Samuel IdowuProfessor Michael JeffersonProfessor Walter LealProfessor Photis LysandrouProfessor Ashish MishraDr Abay MulatuDr Thierry RaynaProfessor John SedgwickMs Ronke ShoderuDr Konstantinos SkindiliasDr Chris StewartDr Vlasios Voudouris

Applications should be addressed to:admissions@londonmet.ac.uk

CONTACT

ABOUT LONDON METROPOLITANUNIVERSITY

Transforming livesMeeting needsBuilding careers

London Met is a vibrant place to study. It is situated in cosmopolitan areas of the City andNorth London, in the bustling financial and art districts. We have a diverse and interesting body of students who have come to study here fromacross London and the globe. Students and staffcome together to form this incredibly unique andthriving institution.