- Introduction:
- ESG Case Studies:
» Provide examples of companies who have been negatively impacted by ESG risks.
» Case Study: Vale.
» Case Study: Ali Enterprises.
» Case Study: Volkswagen.
- Environmental Risk :
- Introduction to Environmental Risk:
» Describe environmental risk.
» Case Study: Groups work on a self-selected relevant case.
» Identify the main types of environmental risk issues.
- Importance of Managing Environmental Risk:
» Explain the strategic importance of environmental risk to lenders.
» Explain the impact of environmental risks (Direct, indirect liability and reputational impact).
- Minimizing Environmental Risk:
» Understand how to assess environmental risk in a lending transaction (Data, environmental due diligence, covenants, conditions, etc.).
» Describe how lenders can mitigate environmental risks in their lending portfolio.
- Measuring and Managing Climate Change Risks:
» Understand TCFD recommendations.
» Describe different tools to measure climate risks.
- Social Risk:
- Introduction to Social Risk:
» Describe social risk.
» Case Study: Groups work on a self-selected relevant case.
» Explain how social risk has evolved over time.
» Identify the main types of social risk issues.
- Importance of Managing Social Risk:
» Explain the strategic importance of social risk.
» Explain the impact that social risks can have on a business and lender.
- Minimizing Social Risk:
» Understand how to assess social risk in a lending transaction (Data, social due diligence, covenants, conditions, etc.).
» Describe how lenders can mitigate environmental risks in their lending portfolio Course Detail.
- Governance Risk:
- Introduction to Governance Risk:
» Describe governance risk.
» Case Study: Groups work on a self-selected relevant case.
» Explain how governance risk has evolved over time.
» Identify the main types of governance risk issues.
» Importance of Managing Governance Risk.
» Explain the strategic importance of governance risk.
» Explain the impact that governance risks can have on a business.
» Explain the impact that governance risks can have on a lender
- Minimizing Governance Risk:
» Understand how to assess governance risk in a lending transaction.
» Describe how lenders can mitigate governance risks.
- ESG and Credit Risk:
- ESG impacts Credit Ratings:
» Understand why Credit Rating Agencies acquire and integrate ESG Rating and Research Providers.
» Actual discussions with regulators in central banks and policy bodies (EU). More required capital for poor ESG qualities.
» Case Study: Latest requirements by the Bundesbank (GE).
- Quantitative credit rating models including ESG factors:
- Understand discriminant analysis.
- Case Study: Applying quantitative credit rating models.
- Understand the importance of data quality.
- Emerging ESG Issues and Regulations:
- SDG Impact:
» Describe the Sustainable Development Goals.
» Describe SDG impact measurement methodologies.
- Modern Slavery Act:
» Describe Modern Slavery and the Modern Slavery Act.
» Explain the impact of modern slavery on lenders.
- Equator Principles and Reporting:
» Describe the Equator Principles.
» Understand the key principles covered by the framework.
» Identify who the Equator Principles apply to and what the reporting requirements are.
» Appreciate the impact of the Equator Principles on the lending activities of financial institutions.
- Integrating ESG principles into your business:
- Sustainable Finance:
» Describe sustainable finance.
» Understand why investors, borrowers and lenders are interested in sustainable finance.
» Describe how sustainable finance works and the key considerations for participants including.
- ESG data:
- Responsible lending and investing:
» Describe how lenders and investors are going beyond basic ESG principles to commit to ways
of treating customers fairly and to manage investment risks.
» Describe how lenders and investors manage their supply chain and stakeholder relationships
to reduce indirect ESG risk.
- Embedding ESG strategy and policies :
» Understand how financial institutions can embed ESG data analytics and strategies into their business.
» Describe an effective ESG policy and how it can be embedded in a financial institution’s risk management framework.
» Case Study: Design your institutions’ ESG policy.
» Describe how improved board oversight can mitigate a lender’s governance risk
- Becoming and remaining a PRI Signatory.