How Sustainability Is Changing The Financial Sector

New Risks, Challenges and Business Opportunities for Banks and Investors under Environmental and Social Responsibility

What you'll 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
Requirements
Fair understanding of how Corporate Banks and Financial Institutions contribute to the economy and the society
Basic knowledge of Credit Risk analysis and Risk Management in Corporate Banking
Interest in the principles of Climate Emergency, Inequality, de-carbonization of the Economy, Social Responsibility and Well Being
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.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, 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.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 What is Sustainability and Why it Matters for the Financial Sector

Lecture 3 Impact Investing or Investing with a Purpose

Lecture 4 A Very Controversial Topic: Financing Fossil Fuels

Section 2: The surge of new Sustainability-related Risks in the Financial Sector

Lecture 5 How Climate Risks are Financial Risks and how ESG can assist the Risk Assessment

Lecture 6 Climate risk categories: Physical&Transitional Risks. Transitioning to Net Zero

Lecture 7 How climate risks may disturb the functioning of Financial Markets

Lecture 8 ESG example: Assess, quantify and mitigate Climate Risks and their impact

Section 3: The importance of Sustainability Governance, ESG and PRIs

Lecture 9 SGDs and The importance of Governance for the Financial Sector and Businesses

Lecture 10 Guidance for FIs: How to set up a Sustainability Strategy and proper Disclosures

Lecture 11 The Principles for Responsible Banking (PRBs)

Lecture 12 The crucial role of Insurance in the Transition to Net Zero

Section 4: How Sustainability is changing Decision Making

Lecture 13 Recognizing the Issue, Taking Responsibility, Being Accountable

Lecture 14 How the Financial Sector may Transition from Financing Fossil Fuels

Lecture 15 The Green contribution of FINTECH

Lecture 16 Embrace a new/Sustainable Business minding ESG-related Criminal Litigation

Section 5: Sustainable Finance: New Business Opportunities

Lecture 17 New products/Business Opportunities/Sustainable Finance

Lecture 18 Sustainability Linked Loans and Green Loans

Lecture 19 Green Bonds and Sustainability-Linked Bonds

Lecture 20 Financing Supply Chains in the context of Sustainability

Lecture 21 Sustainable Insurance - Product Showcase

Lecture 22 The surge of Green/ESG/Sustainable Investment Funds

Section 6: Rating Implications for Financial Institutions, Corporations and Countries

Lecture 23 ESG Rating Agencies, ESG Ratings, Sustainability Reports

Lecture 24 Controversies around ESG and Climate Risks - Tesla, HSBC - How to argue

Section 7: Expected Developments, Summary, Final Remarks

Lecture 25 Ongoing and Expected Developments - Summary

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