Principles of Finance: ESG and Green Bonds

This lecture covers the rise of ESG and green bonds, emphasizing sustainable, responsible, and impact investing. It explores the importance of sustainable investment options, the environmental impact of products and services, and the market size of ESG bonds. Case studies on Swisscom AG and Lafarge Holcim illustrate the practical application of green bonds and sustainability performance targets. The lecture also delves into valuation methods for stocks, including discounted cash flow (DCF) valuation, NPV, IRR, and the payback rule. It concludes with a discussion on the relationship between cash flows and valuations, highlighting the distinction between earnings and actual cash flows.