Greening the Balance Sheet: Green Finance and Environmental Risk Valuation Training Course
Introduction
The global economy is increasingly recognizing that environmental degradation and climate change pose not only ecological threats but also significant financial risks and opportunities. From physical risks like extreme weather events impacting assets to transition risks stemming from policy shifts and technological disruptions, financial institutions and corporations are facing growing pressure to integrate environmental considerations into their core operations. Concurrently, there's a burgeoning demand for "green finance" to fund the transition to a sustainable, low-carbon future, requiring specialized knowledge in structuring and valuing these innovative financial instruments.
This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of green finance principles and the methodologies for valuing environmental risks. From dissecting the interconnectedness of environmental factors and financial performance to mastering the tools for assessing climate-related risks and structuring green financial products, you will gain the expertise to navigate this evolving landscape. This empowers you to contribute to sustainable investment strategies, enhance risk management frameworks, and unlock new opportunities in the rapidly expanding green economy.
Target Audience
- Financial professionals in banks, investment firms, and asset management.
- Risk managers and credit analysts.
- Corporate sustainability officers and ESG (Environmental, Social, Governance) specialists.
- Project finance professionals and infrastructure developers.
- Regulatory bodies and central bank officials.
- Environmental consultants and impact investors.
- Government officials involved in climate policy and green economy initiatives.
- Academics and graduate students (Master's and PhD) in finance, environmental studies, or economics.
Duration: 10 days
Course Objectives
Upon completion of this training course, participants will be able to:
- Understand the fundamental concepts of green finance and its role in sustainable development.
- Grasp the distinctions between physical and transition environmental risks and their financial implications.
- Analyze various methodologies for identifying, assessing, and valuing environmental risks in portfolios and projects.
- Comprehend the structure, standards, and market dynamics of key green finance instruments (e.g., green bonds).
- Evaluate the integration of ESG factors into investment decision-making and risk management frameworks.
- Develop practical skills in using analytical tools for environmental risk valuation and green investment analysis.
- Navigate relevant regulatory frameworks, reporting standards (e.g., TCFD), and taxonomies in green finance.
- Formulate robust strategies for green investment, environmental risk mitigation, and sustainable financial product development.
Course Content
- Introduction to Green Finance and Sustainable Finance
- Defining green finance, sustainable finance, and responsible investing
- Historical evolution and key drivers: climate change, regulation, investor demand
- The role of finance in achieving sustainable development goals (SDGs) and Paris Agreement
- "Greening finance" vs. "financing green": understanding both dimensions
- Global market trends and growth of green financial assets
- Understanding Environmental Risks in Finance
- Physical Risks: Definition, types (acute, chronic), and their financial impacts (e.g., asset damage, business disruption, supply chain risk)
- Transition Risks: Definition, types (policy, technology, market, reputational), and their financial impacts (e.g., stranded assets, regulatory costs, litigation risk)
- Interconnectedness of environmental risks with traditional financial risks (credit, market, operational, liquidity)
- Sector-specific environmental risks and their materiality
- Emerging risks: biodiversity loss, natural capital degradation
- Environmental Risk Identification and Assessment
- Methodologies for environmental risk identification: materiality assessments, risk matrices
- Environmental due diligence for projects and corporate finance
- Integrating environmental considerations into credit risk analysis
- Scenario analysis and stress testing for climate-related financial risks (e.g., NGFS scenarios)
- Tools for environmental risk screening and scoring
- Valuation of Environmental Risks: Methodologies
- Financial impact assessment of environmental damages and liabilities
- Cost-benefit analysis for environmental risk mitigation and adaptation projects
- Discounting long-term environmental costs and benefits
- Real options analysis for climate-related investments under uncertainty
- Economic valuation techniques for ecosystem services and natural capital (conceptual overview)
- Green Bonds and Sustainable Debt Instruments
- Green bonds: definition, Green Bond Principles (ICMA), certification
- Types of green bonds: corporate, sovereign, municipal, project bonds
- Social bonds, sustainability bonds, and sustainability-linked bonds
- Blue bonds and other thematic bonds
- Market trends, issuance process, and investor demand for sustainable debt
- Environmental, Social, and Governance (ESG) Integration
- What is ESG? Drivers and components of ESG performance
- ESG data providers and rating agencies: methodologies and limitations
- ESG integration in investment strategies: screening, best-in-class, thematic, impact investing
- ESG factors in equity valuation and fixed income analysis
- Preventing greenwashing and ensuring ESG credibility
- Green Equity and Sustainable Investment Funds
- Green equity funds and indices: composition and performance
- Impact investing: defining impact, measurement, and reporting
- Public and private equity approaches to green investment
- Role of venture capital and private equity in financing green innovation
- Blended finance for green projects in developing economies
- Regulatory Landscape and Reporting Frameworks
- Global and regional regulatory initiatives in sustainable finance (e.g., EU Taxonomy, TCFD, ISSB)
- Disclosure requirements for climate-related financial risks
- Green taxonomies and their role in directing capital
- Role of central banks and financial supervisors in fostering green finance
- Implications for financial institutions and corporate reporting
- Developing Green Financial Products and Services
- Designing green loans, green mortgages, and green insurance products
- Sustainable supply chain finance solutions
- Carbon pricing mechanisms and carbon markets (brief overview as financing tools)
- Innovative financial instruments for nature-based solutions and biodiversity finance
- Digital finance and technology's role in green finance (e.g., blockchain for carbon credits)
- Case Studies and Future Trends
- Real-world examples of green finance implementation and environmental risk management
- Lessons learned from successful and challenging green finance initiatives
- The role of circular economy principles in green finance
- Integrating climate and nature risk into enterprise risk management (ERM)
- The future of green finance: scaling up, standardization, and addressing systemic risks.
CERTIFICATION
- Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate
TRAINING VENUE
- Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
AIRPORT PICK UP AND ACCOMMODATION
- Airport pick up and accommodation is arranged upon request
TERMS OF PAYMENT
Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com
For More Details call: +254-114-087-180
Greening The Balance Sheet: Green Finance And Environmental Risk Valuation Training Course in Kenya
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