المخرجات
By the end of this training course, trainees will be able to:
- Explain why ESG risks should be a material consideration for banks.
- Define how financed emissions influence a lender’s own ESG disclosures.
- Calculate a borrower’s attribution factor using PCAF Standards.
- Explain systems thinking and how it relates to ESG integration & credit risk.
- Integrate ESG factors into a financial model and calculate adjusted financial ratios for an example borrower.
- Identify trends and future strategies for incorporating ESG into credit risk analysis.
الفئة المستهدفة
- Current and aspiring credit professionals,
- Relationship managers,
- Credit analysts,
- Risk managers.
المحتويات
- Introduction & overview.
- The Big Picture of ESG:
- Defining ESG, and reframing the Problem.
- Banks’ Lending and ESG.
- Operational Boundaries and the Scopes of Emissions.
- The partnership for carbon accounting financials (PCAF).
- The attribution factor and issues in calculating emissions.
- Reverse-Engineered Estimated Emissions.
- ESG & systems thinking:
- ESG and the cost of funding.
- Systems thinking and ESG integration.
- Corporate reputation and physical climate risks .
- Credit metrics and lending ratios.
- Calculating credit metrics.
- Financial statements and supporting schedules:
- Income statement assumptions.
- Balance sheet assumptions.
- Working capital assumptions.
- Lending assumptions.
- Scenario analysis - credit metrics and financial statements.
- ESG trends in commercial lending:
- Potential trends in esg integration and analysis.
- Future ESG trends.
- Risk rating and due diligence.
- Client reporting.
- Pricing and profitability models.
- Loss given default.
- Capital reserve requirements.
- Profitability exercises:
- Probability of default.
- Loss given default.
- Capital requirements.
- Mitigation strategies.
- Practical examples.