Intro to Sustainability and Climate Risk Management, Markets and Instruments (VIRTUAL CLASS) - SCRM 

CPE Credits Awarded: 20
Categories: Other Energy Resources, Trading, Derivatives, Hedging and Risk Management, Global Association of Risk Professionals (GARP) Approved Course , Virtual Classroom Courses

Course Date Duration Venue Price Registration Deadline Register
04 Apr 2022 5 Days Globally Online - New York City & London Time Country: us
$ (USD)1,780.00
25 Feb 2022

UPCOMING SCHEDULE DETAILS:

4-8 April 2022  New York City Timing  London Timing  Singapore Timing
Session 1: 4 April 2022 
 10:00am - 2:00pm EDT
 15:00 - 19:00 BST  10:00pm - 2:00am SGT
Session 2: 5 April 2022 
 10:00am - 2:00pm EDT  15:00 - 19:00 BST  10:00pm - 2:00am SGT
Session 3: 6 April 2022   10:00am - 2:00pm EDT  15:00 - 19:00 BST  10:00pm - 2:00am SGT
Session 4: 7 April 2022   10:00am - 2:00pm EDT  15:00 - 19:00 BST  10:00pm - 2:00am SGT
Session 5: 8 April 2022   10:00am - 2:00pm EDT  15:00 - 19:00 BST  10:00pm - 2:00am SGT

COURSE SUMMARY

This course is designed to help candidates of the GARP Sustainability and Climate Risk (SCR™) Certificate prepare for the exam.  The course will also help professionals understand and manage the potential economic and operational impacts of sustainability and climate risks (SCRs) in their organizations.  Delegates not preparing the GARP SCR certificate are welcome to attend however please be aware that there will be much discussion specifically around the exam and its suggested readings.

We will review the way climate risk impacts various economic agents from energy firms, investors and banks to insurance and reinsurance companies, manufacturers and distributors in supply chains.  This workshop provides an overview of the “green” finance and trading markets created as a global response to climate change and will cover a wide range of financial products and instruments for financing sustainability and climate projects. We will review different initiative to price carbon, from a market and regulatory perspective.

We will discuss the main recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and see how different energy firms have adopted the framework to report climate risk exposures and guide portfolio management decisions.

The course also explores how to integrate SCR exposures in the Enterprise Risk Management Process, with focus on risk identification, measurement and management. We will also discuss effective design and applications of scenario analysis of climate change risks in the context of energy portfolios.

Case Studies for Energy Firms to illustrate key concepts will be introduced throughout the course.  Prior exam questions and detailed answers will be discussed throughout the course for all modules.

WHO SHOULD ATTEND?

Professionals who need to understand and manage the potential economic and operational impacts of sustainability and climate risks.  Candidates for the GARP Sustainability and Climate Risk (SCR™) Certificate.

COURSE CONTENTS

Foundations of Climate Change

• What is climate change and differences between weather and climate.
• Trends of modern climate change (mean global surface temperature, sea ice coverage, etc.)
• Primary greenhouse gases (and aerosols), sources, global warming potential (GWP), atmospheric lifetimes, and relative contribution to climate change.
• Methods to differentiate between human-induced and natural climate changes
• Earth's energy balance, greenhouse effect, artic amplification and radiative forcing.
• Economic and ecological climate impacts (e.g., precipitation, sea level rise).
• Ocean's unique role in balancing the climate cycle and contributors to sea level rise.
• Climate tipping points
• Climate change adaptation.
• Trends in the energy system and relative carbon intensities of energy sources.
• Renewable and low-emission energy technology (including carbon capture and storage)
• Challenges (e.g., intermittency) in deploying each technology.
• Carbon budgets and emissions trajectories to stay within mitigation targets.
• Sample quiz with chapter questions and review of answers

Sustainability

• UN Sustainable Development Goals (SDGs): Associated goals and targets.
• Key features of sustainable development and the goals of the 2030 Agenda.
• Strategies to reach the SDGs, materiality and alignment within the private sector.
• Principles for responsible banking
• Principles for responsible investment
• Main parameters of sustainability, social responsibility, and various environmental challenges.
• Understanding the relationship and intersection between sustainability, ESG, and climate change.
• Sample quiz with chapter questions and review of answers

Climate Change Risk

• Linkages between climate risk and financial risk.
• Task Force on Climate-related Financial Disclosure (TCFD) disclosure parameters and key recommendation features.
• Physical and transition risks: Practical examples
• Hazards/drivers, exposure, and vulnerability manifestation into physical and transition risks
• Stranded assets and stranded asset risk
• Acute and chronic physical hazards
• Uncertainty, variability, and accuracy in hazard model predictions (e.g., frequency, timeframes).
• Data challenges modeling direct physical risk.
• Current state of climate hazard data availability and key consideration to interpret climate risk data.
• Indirect risks.
• Opportunities from physical and transition risks
• Main drivers of transition risk, categories and examples
• Industry trends for each transition risk category and strategies companies can use to reduce risk or manifest climate-related opportunities.
• Case study: Physical and transition risks for the real estate and electricity sectors.
• Sample quiz with chapter questions and review of answers

Sustainability and Climate Policy, Culture, and Governance

• Relative scale of emissions by country.
• History of international climate agreements: Achievements and shortcomings
• Countries' obligations after joining various climate agreements.
• Climate change policies and goals: Before and after the Paris Agreement
• Mechanisms and plans in the Paris Agreement.
• Carbon-pricing policies of carbon taxes and emissions-trading schemes
• Benefits and drawbacks from carbon pricing mechanisms
• Climate policies in the power generation and transportation sectors.
• Sector-specific emissions reduction policies.
• Climate policy occurs at the national and subnational levels.
• Private-sector sustainability and climate investment policies.
• The role of public policy to promote the adoption of green finance.
• Introduction of climate change into Central Bank's supervision practices.
• Case study: How is the Bank of England incorporating climate-related risk into policies
• Types of policy enforcement for sustainable investment and disclosure.
• Trends in private-sector climate frameworks.
• Broader societal and cultural impacts of climate change and policies.
• Sample quiz with chapter questions and review of answers

Green and Sustainable Finance: Markets and Instruments

• Sustainable, green, and climate finance: Definition and applications
• Trends and flows in sustainable and climate finance.
• Green, social, and sustainable bonds.
• Core components of the Green Bond Principles.
• Green loans and their markets.
• Sustainability-linked bonds and loans: Definition and examples
• Sustainability-Linked Loan Principles and Sustainability-Linked Bond Principles: Core components
• Sustainable funds, green funds, and other sustainable finance products.
• Integration of ESG and climate issues into investment and lending decisions.
• The role of shareholders in the sustainability strategy of a company.
• Existing and emerging approaches to defining sustainable and green finance.
• Trends in ESG disclosure requirements for companies.
• Regulatory trends in sustainable and green finance.
• Sample quiz with chapter questions and review of answers

Climate Risk Measurement and Management

• Approaches to measuring climate-related risks: Metrics and Tools
• Difference and linkages between climate risk and other financial risks
• Main financial risks: operational, credit, liquidity, insurance underwriting, market, and sovereign risk.
• Standard tools and techniques for measuring, modeling, and managing financial risks
• Climate value at risk (CVaR) framework.
• Incorporation of climate risk into existing ERM frameworks.
• Identification, measurement and monitoring of climate related risks
• Climate risk: integration in risk governance frameworks, risk appetite statements, and risk culture.
• Climate risk implications for corporate culture and governance.
• GHG Accounting and Reporting Principles: Direct and Indirect emissions
• Business Goals and Inventory Design
• Setting Organizational Boundaries
• Setting Operational Boundaries: Scope 1, 2 and 3
• Identifying and Calculating GHG Emissions
• Reporting and verification of GHG Emissions
• Sample quiz with chapter questions and review of answers

Climate Models and Scenario Analysis

• Scenario analysis and climate scenario analysis.
• Use of climate scenario analysis by organizations.
• Intergovernmental Panel on Climate Change (IPCC) scenarios
• Representative concentration pathways (RCPs) and shared socioeconomic pathways (SSPs).
• International Energy Agency (IEA) and other global reference scenarios
• Main scenario parameters, corresponding outputs, and their business application.
• Use of scenario analysis to assess transition and physical risk.
• Use scenario analysis to set corporate strategies and communicate with stakeholders.
• Scenario analysis and its role in mitigation of operational risk and resiliency planning.
• Climate scenario analysis by financial firms
• Case studies and analysis of firm's disclosures
• Sample quiz with chapter questions and review of answers

FACULTY

DR CARLOS BLANCO is a financial risk management expert with over 20 years of diverse experience in energy and financial markets. Throughout his extensive career, he has worked with some of the largest energy and commodity market firms worldwide providing advisory services, educational and software solutions.

He is currently managing director for Ascend Analytics a firm providing market intelligence and decision analysis tools to support the energy transition. He has advised risk groups, boards and senior management in renewables, oil, gas, power, mining and trading firms on risk management and business strategy including governance, risk policy, hedging strategy, risk appetite, risk and performance metrics and risk model development and validation.

Dr. Blanco is an active faculty member for Mennta Energy Solutions since 2004, and he has conducted a wide range of energy derivatives hedging, pricing and risk management seminars worldwide. He also teaches several courses on environmental finance, sustainability, and climate risk as well as portfolio management for renewables resources. A frequent conference speaker and writer, he has coauthored over 150 articles for Energy Risk Magazine, Journal of Portfolio Management, Commodities Now, Energy Metro Desk, Oil and Gas Journal and others.

He is a former VP Risk Solutions at Financial Engineering Associates, Inc (a MSCI/BARRA Company), where he managed the market risk suite of products as well as the firm’s product support and professional services group. He also taught finance at the University of California, Berkeley, and the ABN AMRO Academy. Dr. Blanco was recently awarded the GARP Sustainability and Climate Risk (SCR) certification.

GARP rgbMennta Energy Solutions is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. Mennta Energy Solutions has determined that this program qualifies for 16 GARP CPE credit hours. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at www.garp.org/cpe

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