Climate change poses an unprecedented and growing threat to the financial stability and operational continuity of financial institutions worldwide, including Savings and Credit Cooperative Organizations (SACCOs). These risks manifest as physical risks (e.g., extreme weather events like floods and droughts impacting assets, agricultural loans, or member livelihoods) and transition risks (e.g., policy shifts towards a low-carbon economy, technological advancements, or changes in market sentiment impacting investment portfolios or loan quality). For SACCOs, which are often deeply embedded in local communities and have significant exposure to agriculture and small businesses, these climate-related impacts can directly translate into increased credit defaults, liquidity challenges, higher operational costs due to disruptions, and damage to their physical infrastructure. Building Climate Risk and Financial Resilience in SACCOs is therefore not merely about compliance or environmental responsibility; it is a fundamental strategic imperative to safeguard member savings, ensure long-term sustainability, and continue fulfilling their crucial role in fostering financial inclusion and community development in a rapidly changing climate.

Duration: 5 Days

Target Audience

• SACCO Board Members
• Risk Managers and Analysts
• Financial Managers and Credit Officers
• Compliance Officers
• Internal Auditors
• Strategic Planners
• Loan Officers and Relationship Managers
• ESG (Environmental, Social, Governance) Leads
• Product Development Teams (for green finance products)
• Supervisory Committee Members

Objectives

• Understand the concepts of climate risk (physical and transition) and their relevance to SACCOs.
• Learn to identify and assess climate-related financial risks within SACCO portfolios and operations.
• Acquire skills in integrating climate risk considerations into existing risk management frameworks.
• Comprehend techniques for developing and implementing climate-resilient strategies for SACCOs.
• Explore strategies for identifying and capitalizing on green finance opportunities.
• Understand the importance of data collection, reporting, and disclosure for climate risk.
• Gain insights into regulatory expectations and international best practices in climate risk management.
• Develop a practical understanding of building a culture of climate awareness and resilience within a SACCO.

Course Content

Module 1: Introduction to Climate Change and Financial Risk

• Defining climate change: science, impacts, and future projections.
• Understanding physical risks (acute and chronic) and transition risks.
• The unique vulnerabilities of SACCOs to climate change impacts.
• Direct and indirect financial impacts of climate risk on SACCOs (credit, market, operational, reputational).
• Global and regional context of climate risk in the financial sector.

Module 2: Identifying and Assessing Climate Risks for SACCOs

• Methodologies for climate risk identification relevant to SACCOs (e.g., portfolio analysis, geographic exposure).
• Tools for assessing physical climate risks: climate data, mapping, scenario analysis.
• Assessing transition risks: policy changes, technological shifts, market demand.
• Materiality assessment: determining significant climate risks for the SACCO.
• Case studies of climate risk impacts on cooperative financial institutions.

Module 3: Integrating Climate Risk into Risk Management Frameworks

• Aligning climate risk management with the SACCO's overall Enterprise Risk Management (ERM).
• Incorporating climate risk into credit risk assessment and loan underwriting.
• Managing climate-related operational risks and business continuity planning.
• Liquidity and market risk considerations in a changing climate.
• Developing key risk indicators (KRIs) for climate risk.

Module 4: Building Financial Resilience to Climate Shocks

• Strategies for enhancing SACCO resilience against climate-induced financial stress.
• Diversification of loan portfolios and investment strategies.
• Building adequate capital buffers and reserves for climate-related losses.
• Role of climate-related insurance products for SACCOs and their members.
• Crisis preparedness and emergency response planning for climate events.

Module 5: Green Finance Products and Opportunities for SACCOs

• Introduction to green finance concepts and principles.
• Developing green loan products (e.g., for renewable energy, sustainable agriculture, water efficiency).
• Mobilizing green deposits and investments.
• Partnerships for green finance initiatives.
• Marketing and communication of green financial products.

Module 6: Data, Reporting, and Disclosure on Climate Risk

• Importance of robust data collection for climate risk assessment and management.
• Key climate-related metrics and targets for SACCOs.
• Overview of international reporting frameworks (e.g., TCFD principles, where applicable).
• Internal and external disclosure practices for climate-related financial risks and opportunities.
• Leveraging technology for climate data management and analytics.

Module 7: Regulatory Landscape and Governance for Climate Risk

• Overview of emerging regulatory expectations for financial institutions on climate risk.
• Role of central banks and financial regulators in promoting climate resilience.
• Governance structures for climate risk oversight at the board and management levels.
• Integrating climate risk into strategic decision-making and business planning.
• Ethical considerations and social responsibility in climate risk management.

Module 8: Strategic Adaptation and Future Outlook

• Developing a climate adaptation strategy for the SACCO.
• Innovation in climate-resilient financial products and services.
• Collaboration with government, NGOs, and other stakeholders for climate action.
• Continuous learning and capacity building for staff on climate change.
• The role of SACCOs in driving sustainable development and a just transition.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.