ACFIM0018
GREEN AND SUSTAINABLE FINANCE
MARCH 2025
Overview
• Your summative coursework represents 45% of the final mark for the unit.
• The coursework is in the form of a report.
• Penalties will apply if the coursework is submitted late.
• The coursework is a group work assessment. You will be required to make a plagiarism statement and your submission will be tested for originality.
Coursework requirement
Essay Topic: Green Finance Portfolio Project
Question: You will form. groups of four members to analyse and develop an investment strategy focused on sustainable stocks. Your task is to examine how companies' environmental or social practices impact their performance. This analysis should result in a 2,500-word report detailing your strategy and findings. In cases where a group is constituted of three members, the required word count for the report will be reduced to approximately 2,000 words. The deadline to form. a group is 24 January 2024. After this date, individuals who have not yet formed a group will be randomly allocated to groups.
The Brief:
Your group is tasked with developing an investment strategy that focuses on sustainable stocks. This involves analysing how the environmental or social practices of companies influence their financial performance. Your analysis should include:
1. Stock exchange or index selection: Each group will select a major stock exchange (e.g., NYSE, NASDAQ, LSE) or an index (e.g., S&P 500, FTSE 100). Focus your analysis on companies listed on the chosen exchange or in the index that are engaged in sustainable practices or green technologies. This may include firms specialising in renewable technologies, those with low carbon emissions or low carbon emission intensity or high E-scores, or companies focusing on gender balance or reducing wage gaps, among others.
2. Company selection and analysis: From those identified in the first step, select a group of companies to form. an investment portfolio focusing on sustainable stocks. In your report, provide a clear explanation for choosing these particular companies, considering factors like sustainability performance, financial stability, and growth potential. Additionally, evaluate each company's compliance with Environmental, Social, and Governance (ESG) criteria. Ensure your analysis deeply investigates how these companies incorporate ESG factors into their business operations and the consequent effect on their overall sustainability.
3. Market trends analysis: Investigate how current sustainability trends are influencing the stock market in which your chosen companies are listed. Analyse the impact of various factors, such as environmental policies, advancements in green technology, and increasing public awareness of sustainability issues on stock prices. This part of your analysis should provide insight into how broader environmental and social trends are shaping market dynamics and investor behaviour.
4. Stock performance evaluation: Evaluate the stock performance of your selected portfolio in comparison to the overall market portfolio. This assessment should include an analysis of how your sustainable stock portfolio performs against broader market indices.
5. Sustainability report: Compile your findings into a comprehensive 2,500-word report. The report should detail your investment strategy, the rationale behind your company selection, and an evaluation of each company's sustainability impact and stock performance. Academic and/or real- world practice references should be used where appropriate to substantiate your analysis.
The goal of this assignment is to apply green finance principles in a practical setting, fostering a deeper understanding of sustainable investing and its impact on corporate performance and market trends. Your report should not only showcase your investment strategy but also reflect critical thinking about the role of sustainability in finance.
Background: The project is designed to provide students with practical experience in analysing and strategising within the realm of sustainable investing. It reflects current trends in the financial market and the crucial role of finance in driving sustainable development.
Marks will be awarded for: All students in a group will receive the same mark. Students will be assessed based on their ability to demonstrate critical reflection on relevant academic literature, apply appropriate analytical tools, analyse results, and evaluate and appraise them in the context of the material covered in lectures (ILO3, ILO4).
Assessment criteria :
1. Quality of analysis: Marks will be awarded for the depth and accuracy of your analysis of companies' sustainability practices, financial health, and market performance, including an assessment of their adherence to ESG criteria. Marks will also be given for demonstrating a thorough understanding of current sustainability trends in the stock market and their impact on stock prices and investor behaviour.
2. Report quality: Marks will be based on the clarity, coherence, and overall quality of your written report. This includes the organisation of content, argumentation logic, and the presentation of data and findings.
3. Critical thinking and originality: Recognition of the level of critical thinking, originality, and insight shown in your analysis and recommendations.
4. Research and data utilisation: Evaluation of the extent and depth of research conducted and how effectively data and resources are utilised to support your analysis and findings. Appropriate academic and real-world practice references should be used.
These criteria are designed to assess a comprehensive understanding and application of green finance principles, analytical skills, strategic thinking, and the quality of communication in your report.