Navigating ESG Transition Risks and Opportunities

Course Outline

With increasing scrutiny from regulators and investors globally asking for more transparent and credible ESG disclosures, it is crucial that companies understand how to help drive the transition to sustainability both from a risk and opportunities stand point.

In recent years, the evolution of ESG investing has increasingly become politicized as developed and developing nations face varying challenges in trying to align with global best practice commitments by contributing with efforts in trying to establish robust, meaningful targets on the trajectory to net-zero.

Examples of salient trends shaping the ESG landscape include:

Environmental risk (natural resource management and stewardship)
Influence of external ESG ratings to assist in investor trust
Climate change risk (adaptation and mitigation)
Setting of sector targets and sustainability KPI’s within realistic time horizons
The journey to net-zero (quantification of scope 1-3 emissions)
Supply chain challenges
Gathering of credible ESG data
Social inequalities and human rights
Heightened focus on nature related disclosures and biodiversity risks

These issues are directly intertwined with the cost-of-living crisis which is currently ranked by the World Economic Forum as the most severe global risk. Furthermore, adverse biodiversity along with other environmental impact risks are ranked as the fastest deteriorating global risks over the next decade

Course Background

This interactive workshop will provide an understanding of the application of global best practice frameworks and analysis techniques applied throughout the credit lifecycle and investment processes.
This will be demonstrated by working through case studies together, which will identify key ESG considerations and examples of important mitigation and adaptation strategies.

Why Is This Important

Good governance structures paired with transparent ESG reporting and disclosures allows investors to measure whether companies are meeting their strategic commitments which impacts shareholder value.
Poor ESG performance factors can significantly impact the cost of capital and reputationally result in negative external ratings.
Apart from the quantification of risks, understanding ESG allows companies to identify and maximise a broad range of opportunities linked to the UN Sustainable Development Goals (UN SDGs). This ultimately assists companies to not only take their profit margins into account but also to act as meaningful role players in the transition to net-zero.

Who Should Attend?

Risk Division (managers/analysts involved in understanding and applying sustainability risk)
Credit Managers involved in the ESG process
Client facing/ Frontline bank staff (relationship managers and business managers)
Auditors & Compliance teams (regulatory and monitoring landscape)
Anyone wanting to understand how to incorporate general ESG/Sustainability considerations in everyday business

Benefits of Attending

Sector wide identification of ESG risks and opportunities
Explanation of the broader sustainability context and global initiatives (through implementation of frameworks and standards)
Understand key challenges in measuring, monitoring, reporting and risk assessment tools
Decode the ‘S’ imperative in ESG as it applies to emerging markets. Currently, inadequate company human rights due diligence processes have led to increased attention globally as it is an essential component in achieving sustainable development