COURSE NAME: CONTEMPORARY FINANCE

QUESTION: Critically discuss the role of sustainable$/$green finance and ESG $($Environmental$,$ Social, and Governance$)$ practices in enhancing financial stability, as well as their role in mitigating the risks associated with climate change. Word count $($or equivalent$)$: $2000(+/-10\%)$

Assessment brief: Background: The UK government$$s Green Finance Strategy $2023,$ entitled $$Mobilising Green Investment$,$ aims to strengthen, and expand the UK$$s position as a global leader in green finance and investment. Additionally, the UK government$$s scheme, outlined in the Autumn $2022$ statement and the $2023$ Spring Budget under the label $$Powering Up Britain $-$ The Net Zero Growth Plan$,$ aims to decarbonise the economy and decouple emissions from economic growth. To mobilise green investment and successfully execute this ambitious programme, the UK government aims to launch a $$Transition Finance Market Review$$ on how to make the UK become the best place in the world for raising transition capital on the pathway to $2050.$Transition finance$$ refers to the financial support provided to companies with higher emissions that are attempting to decarbonise. The current regulatory framework tends to prioritise investments in companies with low emissions over those that may currently have high emissions but intend to reduce them. However, supporting the latter may have a more direct impact on achieving emissions reduction goals.

Learning outcomes assessed :Critically evaluate the main concepts in sustainable finance. Critically evaluate how sustainable finance impacts on the financial system. Section Criteria Weightage:

Introduction : Background to green$/$sustainable finance as alternative finance and sustainability issues associated with firms$$ operations and understanding the role of sustainable finance in financial stability:$15\%$

Academic literature and sources: Evaluation of the appropriateness and applicability of the insights provided by literature and student$$s own insights on the role of sustainable$/$green finance and ESG $($Environmental$,$ Social, and Governance$)$ practices in enhancing financial stability: $20\%$

Analysis and critique : Appropriate evaluation, critique, and analysis of sustainability and financial stability. Also, discussion on how sustainable finance and ESG practices can play a role in mitigating climate change risk and its linkage with The UK government$$s Green Finance Strategy $2023$: $30\%$

Conclusion and recommendation : Adequate conclusions and recommendations for companies to follow green financing strategies that are strongly rooted in the stakeholder engagement model of sustainable finance and the Tripple Bottom Line $($planet$,$ people, and profit$)$ approach. Therefore, companies play a role in achieving the decarbonisation plan of the UK government :$15\%$

Organization, logical flow of analysis, academic writing: Logically organized, key arguments raised discussed, and explained :$10\%$

Referencing : Harvard referencing in text and reference list : $10\%$