25627 Responsible Finance

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 25556 The Financial System
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

Investors, financial institutions, and the broader financial system face increasing challenges from issues such as climate change, biodiversity loss, and the transition to a low-carbon economy. Students explore how these challenges impact businesses and society. The subject offers students an overview of the regulatory developments, taxonomies, and financial instruments for managing these challenges, and introduces them to the assessment of environmental risks and opportunities. It also introduces the underlying principles of environmental, social and governance (ESG) investment and socially responsible investment (SRI). In addition, it provides a critical evaluation of the financial and non-financial implications of responsible investing. The subject seeks to inspire students to become responsible decision-makers who can drive positive change in the global economy.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1.	Analyse key social and environmental challenges and their impacts and implications in financial decisions
2.	Apply the key taxonomies, instruments and data metrics in responsible finance decisions
3.	Evaluate the financial risks and opportunities associated with sustainable and responsible businesses and investments

Contribution to the development of graduate attributes

This subject contributes to the development of the following graduate attribute(s):

Social responsibility and cultural awareness
Professional and technical competence

Responsible finance is incorporated in key decision making and evaluations for business in the 21st century. This subject addresses key issues and practices arising from this process.

Teaching and learning strategies

The subject will be delivered via weekly three-hour seminars. The seminars will be supplemented by electronic learning materials and resources including current relevant news items and information about sustainable finance and sustainable investing practices. The LMS will be used to share information and encourage interaction between staff and students. Students will be required to read the learning materials and other resources provided prior each seminar to facilitate a collaborative and interactive learning experience. In-class discussion is an important component of the learning experience, and the seminars will be the venue for extensive discussions of news and current affairs pertaining to sustainable finance. Students will receive feedback in a timely manner on their understanding as shown in their presentation in class and group assignment. There will be a final examination undertaken by all students.

Content (topics)

Concepts and practice in responsible financial markets
Taxonomies, instruments and data metrics
Social issues in financial decision making
Environmental issues in financing and capital allocation decisions
Impact investing
Local and global responsible finance organisations

Assessment

Assessment task 1: Presentation (Group)*

Objective(s):	This addresses subject learning objective(s): 1 and 2
Weight:	30%
Criteria:	Accurate identification of sustainable finance instruments appropriate to the chosen Sustainable Development Goal (SDG) Critical assessment of the available instruments and their mechanisms Justification of analytical choices to arrive at the ‘best practice’ recommendation Clarity and coherence of the presentation *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Objective(s):

This addresses subject learning objective(s):

1 and 2

Weight:

30%

Criteria:

Accurate identification of sustainable finance instruments appropriate to the chosen Sustainable Development Goal (SDG)
Critical assessment of the available instruments and their mechanisms
Justification of analytical choices to arrive at the ‘best practice’ recommendation
Clarity and coherence of the presentation

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Assignment (Individual)

Objective(s):	This addresses subject learning objective(s): 2 and 3
Weight:	20%
Length:	1500 words report
Criteria:	Critical assessment of environmental, social, and the economic impacts of the group recommendation along with the insights gained from in-class and group discussion. Critical assessment of the strengths and weaknesses of the group recommendation Clarity and coherence of submission

Assessment task 3: Final exam (Individual)

Objective(s):	This addresses subject learning objective(s): 1, 2 and 3
Weight:	50%
Criteria:	Understanding of the taxonomies, instruments and data metrics used in responsible finance Ability to apply social issues in financial decision making Application of the environmental aspects in financing and capital allocation decision making for investors, fund managers and other organisations Describe the use and aims of impact investing Knowledge of the local and global responsible finance organisations and the roles they play in responsible finance

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

No text is required

References

Students will find readings for the subject on the LMS, including material from academic and practitioner organisations.