There will be two projects with two different corporate partners within this IBP course. The research question raised by both is focused on ESG practices but formulated slightly differently.

1) Unibail-Rodamco-Westfield: How to make the Better Places Certification more comprehensible and user-friendly?

The IBP Goals:

• Get familiar with the existing sustainability certification in the real estate sector and assess the potential added value of Better Places Certification with respect to various stakeholder groups (e.g. consumers, tenants, municipality).
• Research the asset-level sustainability programmes and communication of URW’s most notable European competitors and compare with URW’s Better Places Certification. Identify any gaps that exist in URW’s Better Places Certification.
  • SES Interspar (online and on-site research)
  • McArthurGlen (online and on-site research)
  • ECE (online research)
  • Klepierre
  • Sonae Sierra
• Research the awareness/understanding and the perceived importance of the individual criteria of the Better Places Certification with a range of stakeholders (e.g. consumers, tenants, municipality). Identify any gaps that exist in URW’s Better Places Certification.
• Propose an effective strategy for URW teams to use/communicate the Better Places Certification responding to the individual stakeholder groups’ needs.

2) Raiffeisen Bank International: ESG regulation/practices in the banking sector

The IBP Goals:

• Familiarize yourself with RBI’s ESG Score Model – documents and descriptions will be provided.
• Review and summarize the respective ESG Score Models of other providers (at least 3), like:
  • Moody’s
  • Fitch Ratings
  • CRIF
  • Others
• Compare the ESG Score models analyzed with that one of RBI and answer at least subsequent questions:
  • How many data points and information per customer are collected by the other provides?
  • Where do you see weaknesses of RBIs Model?
  • Where has RBI to improve its own model to ensure a fair ESG assessment of its customer?
  • How are other providers ensuring to have a most efficient and probably automized data collection in place?

Learning outcomes

- An in-depth market research of the main ESG score models of the market

- Benchmarking on the best practices and where room for improvement (model-wise but also in terms of efficiency) exist

- Advancing research and consulting skills

- Developing project management skills under tight deadlines

Course Background

Environmental, Social, and Governance (ESG) criteria are becoming increasingly important, influencing how companies operate, how investors choose their portfolios, and how consumers make their purchasing decisions. The importance of ESG can be seen from several perspectives:

1. Many investors, including institutional investors, use ESG factors as part of their analysis process to identify material risks and growth opportunities. Companies with strong ESG profiles may be seen as lower risk and potentially more resilient over the long term.

2. ESG factors can help in identifying risks that are not typically covered by financial analysis but can have significant financial implications, such as regulatory risks, reputational risks, and the risks associated with climate change. By addressing ESG issues, companies can mitigate these risks and protect themselves against potential future liabilities.

3. In EU, there is a growing regulatory focus on ESG issues, with governments requiring companies to disclose their environmental impact, social practices, and governance structures. This trend towards greater transparency and accountability makes it essential for companies to integrate ESG considerations into their operations and reporting.

4. Consumers and employees are increasingly valuing sustainability and ethical practices. Companies that perform well in ESG are often more attractive to consumers who prefer to buy from socially and environmentally responsible companies.

5. There is a growing body of research suggesting that companies with strong ESG practices may outperform their peers over the long term, both in terms of financial performance and resilience.

6. Companies operating in sectors with significant environmental and social impacts need to maintain their 'social license to operate' by ensuring they have the ongoing approval and acceptance of their communities and stakeholders.

Attendance is mandatory.

As this is a research dominated course, it will rely on a close cooperation with the CPs and supervision by the CEMS academic faculty

The assessment is based on the abilities of students to execute on the business project, aligned with expectations of the respective CPs and academic requirements specified by the CEMS academic faculty. Specifically, it will comprise of the following components:

Group assessment:

- Mid-term Presentation (PowerPoint Document): 10%

- Mid-term Presentation and Fielding of Questions: 10%

- End-term Presentation (PowerPoint Document): 30%

- End-term Presentation and Fielding of Questions 20%

Individual:

- Mid-term peer rating: 10%

- End-term peer rating: 10%

- Participation: 10%

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