FINC5090 - Finance in the Global Economy
Group Assignment Outline
Semester 1, 2025
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Instructions
1. Read these instructions carefully.
2. This assignment is worth 25% of your total marks.
3. The due date is 09 MAY 2025. Submissions will be accepted until 23:59 on the
due date.
4. DO NOT email your assignment if you miss the deadline.
5. Plagiarism is a serious offense and will result in zero marks and disciplinary ac-
tion for all group members.
6. Include the correct Student IDs of all team members. Student IDs uniquely iden-
tify authors, and it is crucial that the marker knows who the authors are.
7. Number all pages.
8. The header (first) page of your assignment MUST CONTAIN the correct Student
IDs of all team members. Including your names is optional.
9. Answer the questions directly (from page two onwards). Do not include unnec-
essary sections like table of contents, executive summary, etc. An abstract of 100
words is required and should summarize your whole assignment.
10. Use the APA referencing style. If you are unfamiliar with APA, refer to Google
Scholar or manuals like the Chicago Manual of Style for guidance.
11. Write in single-spaced, Times New Roman font, size 12. Page margins should be
2.5 cm on all sides.
12. Adhere to the word limit strictly. Use the space wisely. The word limit is 2,500
words and applies only to the write-up of your analysis. This word limit excludes
references, descriptions of tables or figures, and appendices (if you have any).
13. Submit your assignment in PDF format only.
14. IMPORTANT: Do not present your work in a newspaper-style story. This is an
academic task, and your work should reflect academic rigor. Any statement that
is not a fact must have a citation or should be based on your analysis. Do not
cite random websites, blogs, or Wikipedia. Cite only peer-reviewed academic
economics/finance journal articles or reputed periodicals like the Australian Fi-
nancial Review, the Economist, Time, or the Wall Street Journal.
15. IMPORTANT: This is a group assignment. Collaborate effectively with your team
members, divide tasks appropriately, and ensure that each member contributes
to the analysis and final report. Effective teamwork will enhance the quality of
your work and the learning experience.
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Task
Scenario and Objective
Your group has been hired by Green2 Capital, a global macro hedge fund that in-
tegrates sustainability considerations into its investment strategy. The fund s CEO, A.
Green, is particularly concerned about the growing financial risks and opportunities
associated with sustainability factors.
Green2 Capital seeks to develop a country-level sustainability metric that consol-
idates relevant sustainability indicators aligned with the United Nations Sustainable
Development Goals (SDGs). This metric will be a key input in the fund s sovereign
bond investment decisions across OECD countries.
Your task is to compute a Sustainability Index (SI) to rank OECD countries based
on their sustainability performance. The SI should provide a clear and interpretable
measure of each country s commitment to sustainability and its implications for long-
term investment attractiveness.
Your team must submit a written report detailing the approach to measuring the
Sustainability Index and highlighting its advantages and disadvantages to ensure your
client fully understands this metric. The report should provide a clear explanation of
how the index is constructed and why it helps evaluate long-term investment attrac-
tiveness.
The final report must be presented to the Green2 Capital s management by 11:59
PM on the 9th of May 2025, and it must have an analysis focusing on the following:
1. Abstract (strictly 100 words)
2. Introduction ( 600 words)
3. Data Description and Justification of Chosen Metrics ( 500 words)
4. Approach to Measurement and Economic Justification ( 1000 words)
5. Conclusion and Recommendations ( 300 words)
6. References
7. Main Tables
8. Main Figures
9. Appendix Tables
10. Appendix Figures
While the word limits are guidelines rather than strict requirements, your report
must include all the above sections. Any additional analysis, supporting computa-
tions, or robustness checks substantiating your findings should be included in the Ap-
pendix rather than the main report. All references, tables, figures are not part of the
word count.
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Data Sourcs
OECD Economic and Environmental Indicators
OECD Data Explorer
World Bank Data
Transparency International
Our World in Data
IMF International Financial Statistics
United Nations - Sustainable Development Goals
Please consider starting early and making sure that you explore these data sources.
Note that these are potential data sources; you may use one, two, , or all of them.
The assignment is about your ability to think critically and analyze information, not
your ability to work with large datasets. Prioritize the data sources that provide the
most relevant information for your analysis. Please speak to the teaching staff, even if
you have the slightest doubt.
Methodology
Our inspiration is La Porta et al. (1998), where the authors compared countries using
two single metrics shareholder rights and creditor rights. Following this, our aim is
to highlight an approach rather than the approach. We will discuss the data sources
and potential methodologies collaboratively in tutorials during Weeks 6-9. Make sure
you attend those tutorials. If you cannot attend, you can always use consultation hours
in any of the weeks for any clarification questions.
Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance.
Journal of Political Economy, 106(6), 1113-1155.
Rationale, Challenge, and Help
This assignment offers a unique opportunity to bridge the gap between theoretical
knowledge and real-world application. By engaging in this project, you will gain in-
sights into the global nature of finance and understand how various factors interact
in evaluating investment opportunities. Working with real-world data from sources
such as the OECD, World Bank, and International Monetary Fund ensures that your
analysis is grounded in current, relevant information, enhancing its practical value.
Additionally, this assignment highlights the growing importance of sustainability
in financial decision-making. The increasing industry focus on sustainability-related
metrics alongside traditional economic indicators means mastering this analysis will
prepare you for future career demands. Beyond technical skills, this project will chal-
lenge you to think strategically about how different variables influence investment
outcomes, fostering critical thinking and decision-making skills.
This assignment is challenging but rewarding. You will need to conduct a compre-
hensive analysis of multiple countries based on diverse and sometimes conflicting in-
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dicators. Gathering, synthesizing, and interpreting data from various sources requires
analytical and research skills and the ability to discern the most relevant information.
Developing a composite sustainability metric will push you to justify your method-
ological choices and ensure the robustness of your ranking system.
One of the key challenges is that reality is complex life rarely provides clear, per-
fect answers or data that fit neatly into a framework. You won t always have 100%
certainty in real-world decision-making, and this assignment is designed to help you
embrace that uncertainty. It is an opportunity to think outside the box, apply your ana-
lytical skills, and integrate your financial knowledge innovatively. This is also a chance
to learn how to collaborate effectively, ask thoughtful questions, and seek guidance
when needed.
While this project is demanding, you are not alone. Help is available during tutori-
als and consultation hours, where we will discuss potential methodologies and address
any challenges you encounter. Engaging with your peers and teaching staff, exploring
different approaches, and adapting your thinking will make you a stronger analyst and
decision-maker.
By taking on this challenge, you will gain invaluable experience in handling com-
plex, multidimensional data and making strategic investment decisions. This is the
kind of thinking required in global financial markets where uncertainty is constant,
but those who can analyze, adapt, and collaborate succeed.
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