Bank lenders have ESG exposure on their books already, whether recognised or not. Whilst some banks, still smarting from more than a decade of regulatory shock, unquestioningly adopt what they are told, others see ESG Banking and ESG Lending as an opportunity of a life-time.
This introductory programme provides just enough actionable material to get bankers started, if they have not already, or move them further along if they have, started their ESG journey.
We will be discussing whether ESG risk is separate from credit risk, or is simply an extension of it. We will see what good ESG disclosure looks like – and what it doesn’t. We will evaluate regulatory approaches in the ESG space to see how far banking has come in ESG and what may be yet to come.
- Does the presence of ESG exposure increase loan credit risk? Does it increase cure costs on the part of the borrower? The first session explains how everything has changed in a world that is, superficially at least, the same.
- The second session outlines the disclosure requirements for borrowers, as well as for banks. It then transitions into a discussion of ESG due diligence and how bankers can avoid falling prey to corporate “green washing”.
- The third session discusses bank regulation and initiatives taken to incorporate ESG. Here are examples of direct legislation (EU), recommendations to bank regulators (BCBS) and recommendations to accounting oversight bodies (IFRS).