ESG Developments

ESG (Environmental, Social, and Governance) concerns are gaining importance globally. Banks, insurers, and investors are incorporating ESG-related activities into their portfolios, but they face challenges in meeting evolving regulatory requirements. Also, companies need to include sustainability in their strategy and fulfill increasing regulatory requirements. These developments offer both opportunities and risks, especially in driving the energy transition. Europe and other countries worldwide have committed to net zero emissions by 2050, aligning with international agreements and sustainable development goals.

This interactive workshop will start with an overview / reminder of the key concepts related to ESG and expectations in view of Strategy, Risks (e.g. climate risk), Reporting & Regulation of different stakeholders. The aim is to discuss and demystify some of the challenges and opportunities.

Participants will gain insights into how ESG criteria and requirements are transforming industries and driving companies to rethink their strategies for a better future. It is designed to provide a platform for experts to delve into the matters of ESG Business Development, ESG/Climate Risk Management and address ESG Reporting to stakeholders.

Participants will be able to engage with their peers in an interactive environment. This is more than just a learning opportunity; it is a chance to be at the forefront of a movement redefining your business.

Part 1 (4 hours)

• Introduction (90 mins): Reminder of key concepts: ESG Strategy, Risks, Reporting & Regulation expectations

• Discussion (90 mins): via break-out rooms and class-room discussion

• Preparation of the interactive workshop (30 mins): participants will be asked to choose one of the three topics (ESG Strategy, ESG Reporting, ESG Risks - see description of topics below).

Part 2 (4 hours)

Interactive Workshop (150 mins)

• Preparation (60 mins): participants will be asked to prepare in group answers to the questions (group composition by topic ESG Strategy, ESG Reporting or ESG Risks)

• Discussion / presentation (90 mins – 3 x 30 mins per topic): the outcome of each group analysis will be shared and discussed with the other participants.

Conclusions (60 mins)

• Exchange of views on the conditions required to make progress

• What is needed to support you in the roadmap towards sustainability?

• Wrap up of key take-aways

TOPIC 1:  ESG STRATEGY => BUSINESS with CSR/FINANCE

• How is ESG embedded in your strategy? Do you have a energy transition plan?

• Is the sustainability strategy driven by internal or external factors?

• Could ESG be a source of competitive advantage for your activities?

• What are the opportunities, challenges and threats in the context of Sustainable Finance?

• How are ESG ambitions and strategy translated in KPIs and business objectives?

• Is sustainability a component of the remuneration policy and how is it included in compensation packages?

• Is sustainability part of the Annual Report and/or do you have specific non-financial ESG or Risk reporting?

• Which business opportunities does ESG present to your organisation? (such as diversified international funding sources, to become aligned, etc.)

TOPIC 2: ESG REPORTING => FINANCE with RISK / DATA

• What are the regulatory requirements for ESG reporting (current / future)

• What is the status of non-financial ESG related reporting?

• Is ESG data available? If not, which actions are being taken?

• How are the greenhouse gas emissions of clients sourced / calculated?

• Which tactical and strategic solutions are available to collect the data?

• How are the different lines of defence organised in the control framework?

• How is the data and reporting governance organised?

• Which tools are used to support the non-financial reporting requirements?

TOPIC 3: ESG RISKS => RISK with FINANCE / DATA

• What are typical E, S and G risks in your country?

• Are climate and ESG risks part of the Risk Taxonomy of your bank?

• Which are the physical and transition risks considered?

• How are ESG risks measured and driving other risk types like credit, market, …

• Is ESG already embedded in e.g. the credit process? (e.g. ESG risk assessment for loans, as of a certain size). 

• How is the ESG Assessment process organised?

• Do you have sector policies related to ESG?

• Do you have ESG questionnaires, exclusion and controversy listing?

• Are scenario tests and stress testing being performed?

• Are ESG and climate risks part of the Pillar 2 Supervisory review?

Participants are required to have knowledge and understanding of banking fundamentals and/or ESG principles.

Participants are encouraged to come prepared and have a certain level of expertise in the matter, allowing them to take inspiration on practical solutions that will add significant value to their respective organisations. Mandatory pre-course preparation is part of the participation in this course i.e. participants will be asked to answer some questions before the course.

• Financial Institutions / ESG Experts and/or Finance-Risk Experts.

• Participants should be active in the following functions: Risk, Finance, CSR, Business, Data, Internal or External Audit, Compliance, Sustainable Finance Associations, Supervisory Authorities, etc.