How Sustainability is Changing The Financial Sector

Description

The Sustainability concept is receiving increasing attention and importance given the acceleration of climate issues and the perceived negative impact that some financing activities have on the environment or in human wellbeing.

While in the past investment and credit decisions were made to balance risks with expected return, a new dimension is now taking priority, based on the notion of 'investing with a purpose'. This means investing and financing activities and businesses that have a positive impact in the environment or the society. At the same time, divesting from businesses that contribute to deterioration is under evaluation. This will have drastic consequences for Banks and other financial institutions, leading to unprecedented changes as loan portfolios/assets under management are originated, re-evaluated, and/or winded up. Other opportunities related to the trading of carbon offsets and development of carbon markets must be considered.

Climate change risks are drastic to the Financial Sector and of extremely importance. They are crucial to the point of engaging the Banks' decision making at all levels, from client acquisition and relationship management, through Top Management - and of course Risk Management and Compliance. Sustainability is now an obligatory integral part of the Banks' strategic planning and operations. New regulatory aspects are being introduced and new Governance and ways of disclosing information and rating institutions are applied.

In this course we will touch upon all the above and also on the controversial topic of why we need Financial Institutions to stop financing flows to fossil fuels. We discuss why Sustainability is as well creating business opportunities and new products and boosting new career functions within institutions. We touch upon the ways banks can navigate to more greener portfolios, analyse how clients may be affected by the increased price of carbon (pollution), the importance of being evaluated by rating agencies for Sustainability parameters, and what does this all mean for the Financial sector's reputation and future. 

Course picture copyright credit to Sandra Bulla.

What You Will Learn!

• What is Sustainability and how it is transforming Banks, Insurers and other Financial Institutions
• The way Climate Risks become Financial Risks and put the whole Financial Sector in Danger
• What are Environmental and Social Governance Principles (ESGs) and how do they help Banks and Corporations
• What is Sustainable Lending and Impact Investing and Why Revaluating Corporate Loan Portfolios is Necessary
• How Rating Agencies are Changing Their Approach to Rating Scores because of Sustainability
• New Products and Business Opportunities: Green Loans, Green Bonds, Sustainability Linked Products
• Why Banks should Stop financing Fossil Fuels and must de-carbonize their Loan Portfolios
• How Regulators are aligning Governance to face all climate risks and mitigate impact to the Financial Sector
• The importance of doing Business with care and responsibility for the Planet and the People
• How are FIs reporting on Scope 3 emissions and why these matter
• How the Carbon Markets are bringing new Risks and Opportunities to the Financial Sector

Who Should Attend!

• Relationship Managers/Sales representatives at Banks, Investment Funds or and Insurance Companies
• Credit Officers and Credit Analysts at Financial Institutions
• Risk Analysts or Junior Compliance officers dealing with climate risks, portfolio risks, control processes, regulatory procedures
• College students interested or studying the impact of Sustainability and Green Finance in Financial Institutions
• Financial Advisors
• Anyone interested in how Financial Institutions may contribute to a better world by embracing Sustainability
• Anyone who deals with new Sustainability-related Risks and/or with Claims from catastrophic weather induced disasters
• Junior ESG Analysts in any sector, including in ESG rating agencies

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