Global Transitions in Finance & Sustainability LGT4022

LeadingGlobalTransitionsA2AssignmentFinalIndividualAssignment Assignment Instructions:

AssignmentQuestion:

Required:

1. Central banks see climate risk as potential financial instability risk and therefore as coming under their financial stability mandate.

1. Explain how climate risk can cause financial instability according to central
2. Discuss whether central banks can be successful in preventing climate risk related financial instability when financialisation dominates corporate behaviour and can cause green bubbles in financial markets.

Youshouldanswerthequestionsaboveinmaximum750wordsbyusing theinsights from the following course readings.The first three readings relate to the Question

• and the remaining three readings relate to the Question b.

1. Borioet(2022)Finance and climate change risk:managingexpectations,https://www.bis.org/speeches/sp220607.pdf
2. NGFS (2019)A call for action: Climate change as a source of financial risk, (pages 4-19 only)https://www.ngfs.net/sites/default/files/medias/documents/ngfs_first_comprehensive_report_-_17042019_0.pdf
3. Nauman, B. (2021) Green bubble warnings grow as money pours into renewablestocks,https://www.ft.com/content/0a3d0af8-7092-44c3-9c98-a513a22629be
4. Christophers, B. (2017) Climate Change and Financial Instability: Risk DisclosureandtheProblematicsof NeoliberalGovernance,Annalsofthe American Association of Geographers, 107(5), pp. 1108-1127
5. Ertrk, I. (2020) Shareholder Primacy and Corporate Financialization in Mader,Mertens,D.andvanderZwan,N.(2020)InternationalHandbook of Financialization, Routledge, Oxon, London
6. Ertrk,(2024)MoneyandGreenEconomy:financialisedsolutionstothe environmentalproblemsinJager,J.andDziwok,E.(2024)Understanding green finance: a critical assessment, Edward Elgar Publishing

2. Choose a public company -a company listed in stock market and publishes annual reports in English- and read the following sections in their last two annual reports: i) the statements by the chairman and the CEO to the shareholders/investors; ii) the remuneration packages of its top executives; and iii) the companys social responsibility (CSR), sustainability, and ESG (environment, social and governance) performanceanditsachievementofUnitedNationsSustainableDevelopmentGoals (UN SDGs). You should also research other publicly available sources on the

companyssuchactivities.Then inmaximum1,750wordscriticallyanalyse whether the company is genuinely moving to a stakeholder value-driven company from a shareholder value-driven one or mostlyproviding a narrative without verifiable data andevidencetocreateahaloeffectonitsenvironmentalandsocialresponsibilities.

Youareexpectedtousethe insightsfromallfollowingcoursereadings inanswering Question 2:

1. Hiss,(2013)Thepoliticsofthe financializationofsustainability,

Competition&Change,17(3),pp.234-247.

2. Jones,andNisbet,P.(2011)Shareholdervalueversusstakeholder values:CSRand financialization in globalfood firms,Socio-Economic Review, 9(2), pp.287-314.
3. Li,etal.(2022)The cleanenergyclaimsofBP, Chevron,ExxonMobiland Shell: A mismatch between discourse, actions and investments,PloS one, 17(2),https://doi.org/10.1371/journal.pone.0263596
4. Mayer,(2021)TheFutureoftheCorporationandtheEconomicsof Purpose,Journal of Management Studies, 58(3), pp.887-901
5. Pollman, E. (2022) The Makingand Meaningof ESG,U of Penn, Inst for Law&EconResearchPaper,(22-23),https://ssrn.com/abstract=4219857
6. Rosenzweig,(2014)Chapter4HalosAllAroundUsTheHaloEffect, Simon & Schuster
7. Rosenzweig,(2014)Chapter8Stories,ScienceandtheSchizophrenic Tour de Force,The Halo Effect, Simon & Schuster

Thefollowingwillbetakenintoconsiderationinmarkingyourassignment:

• Comprehensivenessandaccuracyofyouruse oftherequiredreadings,andthe quality of research on the corporate event described in answering Question 1.
• Criticalanalysisofthechosencompanyusingyourownideasandbasedonoriginal research and the insights from the readings in answering Question 2.
• Therelevanceofthe dataandinformationonthe chosencompanysESGandsocial responsibility performance and activities in answering Question 2.
• Presentationalqualities of your paper- citation, bibliography, paragraphing, spacing, spelling, quotations etc.