Climate and ESG Risk Management

Agenda Program Online
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Prague, NH Hotel Prague
Hybrid Training
Both classroom and online training available
Price for online training
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Attend this training course and learn about:

Types of Climate Risks: Physical and Transition Risks
International Perspective and Initiatives
Climate Risk Regulatory and Supervisory Expectations
Sustainability Disclosures and Risk Management
Integration with Business as Usual Risk Management
Climate Risk Data and Modelling
Scenario Analysis and Supervisory Climate Risk Stress Testing
Optimal Net Zero Strategy for Loan and Investment portfolios
Examples of Good Practices
The attention to climate change and climate risk gained significant momentum and managed to climb up the agendas of leading global policymakers, regulators, corporates and financial institutions. Number of banks and investors are already feeling the first climate change losses in their portfolios and are struggling to keep up the paste with the intensity of regulatory climate activities. In parallel, the financial industry is gearing up for yet another climate related significant task – the decarbonization of their portfolios- in order to reach carbon net-zero portfolio by 2050. Climate Risks are source of financial risks, they require special considerations and if they are to be managed effectively and efficiently they need to be addressed in close integration with bank’s business as usual activities.

The objective of this two-day course is to give the participants a deeper understanding of how climate-related and environmental risks impact financial institutions and how should they be embedded into bank’s risk management framework.

Participants will gain insights into emerging regulatory standards, best practices for climate change risk management and have the opportunity to enhance their ability to leverage quantitative metrics and analytics to effectively evaluate climate change risks in loan and investment portfolios under different climate scenarios and strategies. Throughout the course we will cover the latest developments in the industry, regulations and technology relevant for effective and efficient Climate Risk Management.

Program of the seminar: Climate and ESG Risk Management

The seminar timetable follows Central European Time (CET).

09.00 - 09.10 Welcome and Introduction

09.10 - 10.20

Session 1: Introduction to Climate Change & ESG

  • Climate Change facts
  • Climate Extreme events and losses
  • IPCC Sixth Report- Climate Emergency
  • Paris Agreement and Net Zero
  • Climate Change vs Sustainability vs ESG vs Net Zero

10 mins Q&A

10.20 - 11.45

Session 2: International Initiatives and Perspectives

  • European Union “ Action Plan on Financing Sustainable Growth” & “Green Deal”
  • UN Sustainable Development Goals
  • UNEP FI pilot projects & Best practices
  • GFANZ / Global banking alliance for net Zero
  • TCFD / Risk Management / Scenario Analysis
  • TNFD
  • Climate Financial Risk Forum

10 mins Q&A

11.45 - 12.30 Session 3 (part 1)

12.30 - 13.30 Lunch break

13.30 - 13.55 Session 3 (part 2)

Session 3: Introduction to Climate Risk

  • WEF Global Risk report – top RISKS
  • Types of Climate Risks: Physical and Transition Risks
  • Transmission Channels to Financial Risks
  • Financial vs Nonfinancial corporate perspective
  • BIS / NGFS perspectives: Climate as source of financial risks and financial instability

10 mins Q&A

13.55 - 15.05

Session 4: Climate Risk Management and Regulations

  • Climate Risk Management process
  • Climate Risk Governance & Risk Appetite
  • Carbon Footprint & Carbon Accounting (PCAF, Greenhouse Gas Protocol, SBTi)
  • Integration with of climate risk with other Financial risks and BAU
  • Supervisory Expectations Related to Risk Management (ECB)
  • Climate Stress testing
  • Model Risk Management

10 mins Q&A

15.05 - 15.20 Break

15.20 - 17.00

Session 5: Climate Risk Data and Assessment - Transition Risk

Climate Risk Data
  • Carbon data (Internal/ external / vendor)
  • Climate Data pooling
Transition Risk Assessment Methodologies
  • Understanding Carbon Footprint and other risk drivers
  • Practical Methodological examples
  • ECB 2021 Exploratory Climate Risks Stress Test methodology- Transition Risk
  • PACTA – Paris Agreement Capital Transition Assessment –Example of The Automotive Sector

10 mins Q&A

09.00 - 10.10

Session 6: Climate Risk Data and Assessment - Physical Risk

Climate Risk Data
  • Hazard data
  • Geographical / location data
Physical Risk Assessment Methodologies
  • Understanding risk drivers
  • Heatmapping and Scoring Practical Examples
  • Physical Risk Analytics- An Illustration
ECB 2021 Exploratory Climate Risks Stress Test Methodology
  • Physical Risk Assessment – Benchmark of Third-party Providers
  • Integrating Transition Risk and Physical risk

10.10 - 11.35

Session 7: Climate Risk Reporting & Disclosures

  • Sustainability Disclosures and Risk Management
    • Pillar 3
    • CSRD
    • SFRD
    • TCFD
    • IFRS
  • EU Taxonomy
  • Management reporting / TCFD good climate risk reporting practices

11.35 - 12.30 Session 8 (part 1)

12.30 - 13.30 Lunch break

13.30 - 13.50 Session 8 (part 2)

Session 8: Climate Scenario Analysis & Stress Testing

  • Vanilla stress testing vs Climate Stress Testing
  • NGFS Climate Scenarios
  • Process and Methodology considerations
  • ECB 2022 Bottom-up Exercise
  • BOE 2022 Stress Test

5 min climate stress testing demo video

13.50 - 15.00

Session 9: ESG & NetZero

  • GFANZ and Net Zero
  • Transition Pathways
  • Portfolio Alignment methods
  • Optimal decarbonization strategy
  • Social & Governance sides of ESG
  • Biodiversity
  • ESG ratings

15.00 - 15.15 Break

15.15 - 16.30

Session 10: ESG & Climate Risk Best Practices

  • CFRF climate Risk Stress Testing tool
  • Climate impact explorer
  • ThinkHazard – physical risk assessment tool
  • Annual Climate Risk reports of sample leading banks

Summary and Conclusions of the Seminar

Training catalogue in PDF
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