METHODOLOGY FOR IMPLEMENTING ESG QUANTITATIVE INVESTMENTS IN CAPITAL MARKET EDUCATION IN HIGHER EDUCATION INSTITUTIONS

Abstract

The article develops and validates a comprehensive methodological framework for embedding sustainability-oriented, quantitatively grounded ESG investment approaches into finance, banking, and capital markets curricula in higher education institutions. It argues that contemporary financial education must align rapid digitalization, expanding data availability, and heightened demands for transparency with the formation of responsible investment behavior and a culture of long-term value creation among future professionals. The study systematizes international experience and clarifies how quantitative tools—factor models, multi-criteria screening, portfolio optimization with ESG constraints, and scenario-based stress testing—can be integrated into course design, assessment, and learning analytics. Special attention is paid to balancing theory and practice through modular syllabi, data-rich case studies, and simulation exercises that mirror real market conditions while emphasizing environmental, social, and governance risks. The research identifies critical barriers: limited instructor preparedness, scarcity of localized datasets and teaching cases, fragmented methodological guidance, and organizational constraints that hinder the adoption of analytics platforms. It then proposes actionable remedies. A conceptual model is presented that unites theoretical instruction with practice-intensive components, including factor modeling of ESG-tilted portfolios, optimization under ESG constraints, Value at Risk and stress testing with non-financial shocks, and performance attribution that decomposes sustainability contributions to risk and return. Benchmarking against leading programs at Harvard Business School, London Business School, Frankfurt School of Finance, and NUS Business School, the article distills portable design patterns and demonstrates pathways for adaptation to the Ukrainian higher education context and the institutional features of domestic capital markets. The proposed framework bridges the gap between academic theory and market practice by translating sustainability imperatives into measurable learning outcomes and verifiable competence profiles. The results provide universities with a roadmap for curriculum renewal, faculty development, and digital infrastructure planning, while offering regulators and employers evidence-based guidance on skills formation in sustainable finance. Ultimately, the study shows that embedding quantitative ESG principles within finance education strengthens analytical capacity, enhances investment culture, and equips graduates to design portfolios and policies that integrate profitability with environmental integrity, social inclusion, and sound governance.