ESG Lending and Investment

Program Description:

This program aims to integrate environmental, social and governance (ESG) factors into business strategies, which is essential to ensure compliance with a low-carbon environment and creditworthiness. As this field develops, legislation is expected to be issued to transform ESG into binding rules. Leading organizations are taking the initiative to adapt these standards to embrace true sustainability for all those working in this sector.

Key Topics:

1. What is ESG and Why Does It Matter?
   • Understanding ESG and its significance.
   • What does each component measure?
   • Environmental, Social, and Governance dimensions—comparing to sustainability.
2. ESG Assessments and Variables:
   • Environmental dimensions.
   • Social dimensions.
   • Governance dimensions.
   • Challenges in collecting, analyzing, and reporting ESG metrics.
3. ESG Models:
   • Core impact models:
     • Financial materiality.
     • Impact materiality.
     • Dual materiality.
   • ESG methodologies:
     • Absolute vs. relative models.
     • Weighting and aggregation methods.
     • Average vs. granular evaluations.
4. Applications of ESG:
   • ESG in credit analysis.
   • Green and sustainable loans (SLLs).
   • Defining measurable ESG targets.
   • Key Performance Indicators (KPIs): Science-Based Targets (SBTs).
   • ESG ratings vs. credit ratings: Aligning sustainability with creditworthiness.
5. ESG Investment:
   • ESG oversight and governance:
     • Alignment with green classifications.
     • Transparency and data reliability.
     • Conflict of interest mitigation.
   • Internal controls on ESG applications and reporting.
6. Roles and Responsibilities:
   • Board of Directors and senior management.
   • Risk management.
   • Financial management.
   • Internal audit and compliance.

Detailed Objectives:

• Integrate ESG principles and models into corporate governance practices, business risk strategies, models, and policies.
• Protect asset portfolio value, including loans and investments, through sound lending and investment decisions with a sustainability focus.
• Manage risks associated with ESG-related issues, especially credit and market risks.
• Apply and analyze sustainability, including ESG models, due diligence, and credit and investment proposal selection processes.
• Overcome quality challenges related to ESG data.
• Design, review, and implement controls for ESG applications and reporting processes.

Target Audience:

• Strategic Sustainability Officers.
• Risk Management Officers.
• Internal Audit Officers.
• Compliance Officers.
• Financial Management Officers.