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MSc IN SUSTAINABLE BUSINESS, ENERGY AND FINANCE


SUSTAINABLE BUSINESS FOR TOMORROW’S SUCCESS STORIES Three equations about why it matters: Nature

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technology

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regulation

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prosperity

Nature

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technology

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regulation

=

plunder

Nature

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regulation

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technology

=

hunger

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

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CONTENT Page 4

MSc in Sustainable Business, Energy and Finance

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Possible careers for our students

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Resource economics

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Sustainable Development

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Quantitative Research Methods

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Global Environmental Governance

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Computational Finance for Energy

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Energy Scenarios for Business Planning

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Sustainable Business, Energy and Finance Dissertation

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About CIBS Doctoral Training Programme

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About CIBS

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Contact

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MSC IN SUSTAINABLE BUSINESS, ENERGY AND FINANCE We live in a new era, in which concerns about human-induced climatic change and challenges to sustainability have become major factors in business thinking. The aim of the MSc is to provide our students with first-class knowledge of actual and likely changes in the nature of the business environment, so that on completion they will be able 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 Business and Sustainability (CIBS), the MSc comprises seven modules, which between them offer state of the art knowledge of the theory and practice of sustainable business paradigms. In addition, the MSc introduces students to a range of analytical and modelling tools, and conceptual frameworks, in order to apply knowledge and assess risk. This requires students to be comfortable with basic undergraduate mathematics and statistics, as well as what lessons history can teach us. Unique to this degree, the application modules focus upon an Energy-Economy-Environment-Investment framework.

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POSSIBLE CAREERS FOR OUR STUDENTS > Business Analysis > Business Planning > Business Strategy > Energy Economics > Environmental Economics > Energy Trading > Market Research > Modeling energy prices > Quantitative Analytics > Risk Management

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RESOURCE ECONOMICS Overview This module has been designed for students who wish to understand the broad historical context, economic fundamentals, and rationale that underlie environmental and energy policies.

tragedy of the commons’, and with this the nature of public goods. In order to find solutions to these issues, the module goes beyond the standard economic paradigm and examines alternative theories.

Module content

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 this to happen? How can the concept of the tragedy of the commons help us come to an understanding of natural resource exhaustion? Are economic solutions to this issue achievable? Can altruism save the world – what does past experience suggest? What happens to economic solutions when the idea is mooted that decisions and decision-makers are not entirely selfish and self-centred?

However urgent the new imperatives may be, action on energy and environment policies has to start from where we are, which is with the currently dominant economic paradigm. The module reviews the key concepts that make up this paradigm, such as rational choice and resource allocation, and the philosophy on which it is built, and notes a few exceptions to its sphere of influence. The module further examines the efficiency of free markets and various cases of market failure. In particular, the module takes a close look at the problems of overexploitation caused by what has been called ‘the

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SUSTAINABLE DEVELOPMENT Overview

Module content

There is a growing awareness of environmental degradation and the potential unsustainability of societal welfare. The resulting regulatory and environmental momentum has intensified so much that many see a ‘sustainability revolution’, with the accompanying challenges and opportunities to governments, industry, academia, and personal goals and lifestyles. However, what exactly is the sustainability problem and what might be the drivers of unsustainability? This module explores the issue of sustainability both in general terms and in the context of particular concerns such as potential climate change and the reduction of bio-diversity. The focus is on the uses of economic analysis in investigating the causes, consequences and possible solutions to problems of environmental degradation.

Beginning with discussions of the positive and normative aspects of the debate on sustainability and 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 main arguments in the debate on the science, implications, and economics of climate change; and the practical steps organisations may take to change their mode of operation to curtail damage to the environment.

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QUANTITATIVE RESEARCH METHODS Overview

Content

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

> 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

Aims The module aims to provide you with an understanding of the fundamental mathematical and econometric methodology and tools of analysis employed in theoretical research and empirical analysis.

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GLOBAL ENVIRONMENTAL GOVERNANCE Overview

Module content

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

Global environmental governance is a multidisciplinary subject. In the module, we will draw on the resources of politics, economics, philosophy, and law to explore a range of critical issues: climate change, international law and trade, individual and corporate 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

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COMPUTATIONAL FINANCE FOR ENERGY Overview

Module content

This module is designed to introduce students to

Modeling and calibration of energy price pro

methods of modelling energy commodities and

cesses – GARCH processes, specific jump-

derivatives and equip them with the most up-to-

diffusion processes with deterministic intensities

date quantitative tools. On completion students

for mean reversion levels where applicable,

will have a clear understanding of how to manage

Markov chains and regime switching models.

portfolio risk, trading and decision making. The “futures-spot spread” model: Do these The module will focus on the underlying commo-

prices provide direct information about investors’

dity availability and price process that determines

expectations about the future price of oil?

the prices of energy derivatives, the type of energy derivatives on the market, and the manner in which they are traded.

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ENERGY SCENARIOS FOR BUSINESS PLANNING Overview

Content

Most executives know that conceiving future

The module introduces students to a new standard

scenarios is fundamental to the competitiveness

of explanation of the past and the present and

and survival of their organisation. Students are

through this a new method to structure the un-

given first-hand knowledge of energy scenario

certainties of the future. The key aim is to show

planning, first developed by Shell, using real-

how time series data can be used to develop a

world case studies and agent-based modelling

relevant set of plausible scenarios as a critical

and simulation methods. The building blocks of

planning and decision-support tool.

scenario planning include geo-political, economic, financial, social and individual factors as they

Example of topics that will be delivered

develop over time.

The art of scenarios; building blocks for scenario development; past scenarios: the Shell experience; scenarios and computer simulations; current scenarios using ACEGES; writing decision scenarios for the executive board.

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SUSTAINABLE BUSINESS, ENERGY AND FINANCE DISSERTATION Overview

Supervision

The dissertation provides students with the opportunity to develop a research topic based upon a research question they formulate for themselves, but which is pertinent to an aspect of sustainable business developed in the course. Between 10-20,000 words in length, the dissertation carries 60 of the 180 credits necessary for the award of an MSc.

In the semester prior to starting the dissertation, students are required to register their title with the course leader, together with a brief proposal of no more than 1,000 words, detailing methods and sources. The course leader will then appoint a supervisor to support their research activities.

Aim

We 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.

Dissertation Internships

The module requires students to design independently a research project in which they demonstrate knowledge of the pertinent literature, and present, analyse and discuss their findings in a coherent and professional manner.

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ABOUT CIBS DOCTORAL TRAINING PROGRAMME Upon completion of the MSc students can apply to join the CIBS Doctoral Training Programme and develop a research thesis in one of four areas:

For a profile of the students and their supervisors visit 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.

> 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

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ABOUT CIBS About CIBS

CIBS offers:

Businesses and organisations around the world face challenges that defy conventional thinking and analytical approaches. Based in London Metropolitan Business School (LMBS), the Centre of International Business and Sustainability (CIBS) contributes a distinctive voice by bringing together researchers from economics, econometrics, computational economics, policy analysis, strategy and ethics to examine the changing business environment.

> Technical Expertise, particularly the development of decision-support tools based upon the 'Environment-Energy-Economy' and 'EnergyEconomy-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.

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CONTACT CIBS

The teaching team is:

Centre for International Business and Sustainability London Metropolitan Business School London Metropolitan University 84 Moorgate London EC2M 6SQ, UK

Dr Craig Duckworth Dr Gherardo Girardi Dr Samuel Idowu Professor Michael Jefferson Professor Walter Leal Professor Photis Lysandrou Professor Ashish Mishra Dr Abay Mulatu Dr Thierry Rayna Professor John Sedgwick Ms Ronke Shoderu Dr Konstantinos Skindilias Dr Chris Stewart Dr Vlasios Voudouris

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

Director of CIBS Professor John Sedgwick Email: j.sedgwick@londonmet.ac.uk

Deputy Director of CIBS

Applications should be addressed to:

Dr Vlasios Voudouris. Email: v.voudouris@londonmet.ac.uk

admissions@londonmet.ac.uk

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ABOUT LONDON METROPOLITAN UNIVERSITY Transforming lives Meeting needs Building careers London Met is a vibrant place to study. It is situated in cosmopolitan areas of the City and North London, in the bustling financial and art districts. We have a diverse and interesting body of students who have come to study here from across London and the globe. Students and staff come together to form this incredibly unique and thriving institution.


MSc in Sustainable Business, Energy and Finance