ICM516: Sustainable Investments

Module code: ICM516

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 7

When you'll be taught: Semester 2

Module convenor: Dr Lisa Schopohl, email: l.schopohl@icmacentre.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

This module explores how financial investors incorporate sustainability considerations and environmental, social and governance (ESG) criteria into their investment decisions. The module offers an introduction to the main sustainable investment strategies, the main players (governments, supranational institutions, corporations, investment funds, banks) in the sustainable investment space and the application of sustainable investment in different asset classes. A particular focus in this module is on green and climate change-related investments, but the module also explores the social and ethical dimensions of sustainable investment. 

The aim of the module is to familiarise students with the main strategies employed in sustainable investments and the role that sustainable investment can play in addressing societal challenges such as climate change. Using real-world examples and ESG data, students will learn about the key challenges and opportunities that investors incorporating ESG criteria face. Students will also be introduced to the crucial role of financial regulation and voluntary standards/principles in the sustainable investment space. 

Module learning outcomes

By the end of the module, it is expected that students will be able to: 

• outline the main sustainable investment strategies and explain how ESG is incorporated into different asset classes  
• discuss the role of key players in the sustainable investment space 
• critically evaluate the role of ESG ratings and the quality of ESG data in promoting ESG investment 
• critically discuss the main challenges and opportunities in sustainable and green investment, including greenwashing, and the role of regulation and voluntary standards in promoting and hindering sustainable and green investment 

Module content

1. Introduction to sustainable investment and its main players 
2. Sustainable / ESG investment strategies 
3. The role of ESG ratings and ESG data 
4. Green bonds and ESG in the fixed income market 
5. Sustainable investment in the equity markets 
6. Sustainable real estate investments  
7. Public-private partnership (PPP) investments and climate change  
8. Green portfolio management  
9. Climate investments and Fintech 
10. Sustainable investment regulation and disclosure 
11. Greenwashing and other critical issues in sustainable investment 

Structure

Teaching and learning methods

The topics are introduced in lectures which are then followed by seminars which allow for a deeper discussion of the concepts. Case studies and real-world examples are used throughout the module to highlight the real-world investment context in which sustainable investment strategies are applied. 

Study hours

At least 30 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

50% weighted average mark

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Students get the opportunity to discuss and debate cases and examples in the seminars and lectures. Short, weekly quizzes provide students with an overview of the main topics and concepts covered each week.

Reassessment

Additional costs