In October 2022, the Financial Stability Board (FSB) published a system-wide approach for the supervision of climate-related risks, drawing heavily on elements from existing prudential frameworks. Consequently, banks globally must now enhance their risk frameworks and processes to better identify, manage, mitigate, and report on their ESG-related risk exposures. Various roles across banking, from sales, through to loan officers, and risk departments, now require a solid understanding of the financial materiality associated with ESG and climate, emerging related prudential regulation, and the new requirements they face to meet their role in managing risk.
This course, delivered in partnership with WeESG, explores in depth how ESG and climate issues drive risk management across the banking sector. It clarifies how ESG risks can be integrated into a bank's traditional risk frameworks, and what the emerging expectations of regulators are, including the UK's Prudential Regulation Authority (PRA), the European Central Bank (ECB), the USA Federal Reserve Board, and the Monetary Authority of Singapore. It also identifies how leading banks are adapting to better identify, monitor, and mitigate ESG risks and challenges.
Duration: Two half-days (taught material + exercises, case study analysis & Q&A section)
Gain confidence conducting materiality assessments of ESG risks and understanding how credit risk is increasingly impacted by the 'physical', 'transition' and 'liability' risks associated with climate change.
Understand how to compare different approaches to integrating climate prudential regulation across a bank's activities.
Explore ways to integrate sustainability risks across bank-level risk frameworks using a variety of key data sources.
Learn how to integrate ESG risk exposure across a banks various reporting and disclosure requirements.
Trainer: Nick Villiers
Nick is a sustainable finance expert with 18 years' investment banking experience.
Most recently, he led the Centre for Sustainable Finance at the University of Cambridge Institute for Sustainability Leadership (CISL). Working across banking, insurance, and investors to address knowledge gaps and develop tools and frameworks to drive change across finance. Specifically, he steered the Banking Environment Initiative, supporting bank clients on climate.
Prior to CISL, Nick worked in capital markets at Credit Suisse as Head of UK Debt Capital Market and Dresdner Kleinwort Wasserstein.