Training on ESG and Climate Change Implications for Banking

As the world grapples with environmental and social challenges such as climate change, social inequality, and governance failures, the importance of ESG (Environmental, Social, and Governance) considerations has never been more apparent. For banks, ESG is becoming an increasingly important aspect of doing business, as it can help to manage risks, enhance reputation, meet regulatory requirements, drive innovation and increase access to capital.

Given the influence of climate change, there is an urgent need to discuss how commercial banks can strengthen their risk management strategies to cope with climate change. According to The Economist Impact, the future of banking could entail a “climate action paradigm shift” instigated by pressures from consumers and investors. To succeed in this environment, banks will have to change their organizational cultures to integrate ESG issues into their strategy.

Focusing on the intersection of finance, sustainability, and risk management, this training will equip banking professionals with the knowledge and tools necessary to navigate the evolving landscape of ESG and climate change. It will also highlight and illustrate key ESG risks and opportunities, and bank lending and underwriting decisions.

Target Participants

This course targets banking professionals, finance and investment analysts, compliance officers, risk managers and sustainability and CSR officers.

What You Will Learn

By the end of this course the participants will be able to:

• Understand ESG, sustainability and climate change concepts and global drivers
• Outline international and local standards, requirements and laws, and their impact on banks
• Meet ESG and climate-related financial disclosure reporting requirements
• Conduct robust sectoral analysis to inform credit and investment portfolio strategy, to mitigate risks and deliver sustainable environmental and societal impact
• Review the status of a client’s ESG credentials and green transition plans against bank requirements and expectations
• Engage in a strategic dialogue with clients to influence their ESG and Green ambitions
• Actively pursue Green and Climate finance opportunities in existing and new business sectors
• Deliver ESG reporting to recognized and emerging standards, including the latest climate-related financial disclosure requirements

Course Duration

Classroom Based – 5 Days

Online – 7 Days

Course Outline

Understanding ESG, Sustainability and Climate Change

• Overview of ESG principles and their significance in banking
• Historical evolution and global trends in ESG integration
• ESG and the Banking Industry: Why Sustainability Matters

Environmental Factors in Banking

• Impact of Climate Change on financial institutions
• Integration of climate risk assessment and mitigation strategies in banking operations
• Green Finance Instruments and sustainable investment opportunities
• Environmental sectoral analysis: Scope and Opportunities for greater ambition

Social and Governance Aspects in Banking

• Social Considerations: Addressing Social Impact and Inclusion in banking practices
• Governance Structures and their role in mitigating risks and promoting sustainability in banking
• ESG Frameworks for Banks

Lending portfolio strategies

• ESG Criteria in Lending Decisions
• ESG Due Diligence in Loan Origination
• Climate Risk Assessment in Loan Portfolios
• Strategies for Sustainable Lending and Impact Investments

ESG Integration in Risk Management

• Environmental Risk
• Climate risk and credit risk: Broad scope, far-reaching measures
• Transmission of climate change risks to other financial risks
  • Physical risks to credit risk
  • Transition risks to credit risk

ESG in Corporate Governance and Strategy

• Board-level considerations for integrating ESG into corporate governance
• Aligning business strategies with ESG goals and stakeholder expectations
• Engaging stakeholders and fostering a culture of ESG responsibility

Impact Investing and Green Finance Opportunities

• Exploring opportunities for investing in green and sustainable projects.
• Assessing financial viability and impact measurement of green finance initiatives

Case Studies and Best Practices

• Examining case studies of banks successfully integrating ESG into their lending practices
• Actionable strategies for staying ahead in the evolving landscape of ESG and climate change implications for banking

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group works and case studies.

Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.