Supervising Sustainability: Esg (environmental, Social, And Governance) Factors In Capital Markets Supervision Training Course

Introduction

The growing global focus on sustainability necessitates the integration of ESG (Environmental, Social, and Governance) factors into the core of capital markets supervision. This cutting-edge training course is designed to equip supervisors with the essential knowledge and frameworks to effectively incorporate ESG considerations into their oversight. Participants will gain a comprehensive understanding of the financial relevance of ESG factors, learn how to assess climate-related risks and other sustainability challenges, and explore best practices for promoting sustainable finance through robust supervisory frameworks. Mastering the supervision of ESG factors in capital markets is crucial for fostering a resilient and sustainable financial system.

This intensive training course delves into the practical aspects of integrating ESG considerations into the supervision of capital market participants, including listed companies, asset managers, and financial intermediaries. We will explore how to assess the exposure of these entities to environmental risks (e.g., climate change), social risks (e.g., labor standards, human rights), and governance risks (e.g., board structure, executive compensation). Participants will learn about emerging regulatory requirements related to ESG disclosure and risk management, and develop strategies for promoting sustainable finance through supervisory guidance and enforcement. The training course emphasizes the role of supervisors in mitigating climate-related risks and fostering a transition towards a more sustainable economy.

Target Audience

• Capital Markets Supervisors
• Regulatory Policy Analysts
• Risk Management Professionals
• Sustainability Officers
• Compliance Officers
• Investment Analysts
• Central Bankers

Course Objectives

• Understand the fundamental concepts of ESG (Environmental, Social, and Governance) factors and their relevance to capital markets.
• Recognize the financial materiality of ESG risks and opportunities for capital market participants.
• Learn how to assess and supervise climate-related risks within the capital markets ecosystem.
• Understand the key international and national regulatory developments related to ESG disclosure and integration in finance.
• Develop frameworks for incorporating ESG considerations into supervisory risk assessments and oversight processes.
• Explore best practices for promoting sustainable finance through supervisory guidance and expectations.
• Understand the challenges and opportunities in supervising green bonds and other sustainable financial instruments.
• Learn how to evaluate the ESG reporting and disclosure practices of capital market participants.
• Develop strategies for engaging with supervised entities on their ESG integration efforts.
• Understand the role of supervisors in mitigating systemic risks arising from environmental and social factors.
• Explore the use of data and technology in supervising ESG risks and sustainable finance activities.
• Understand the implications of different ESG taxonomies and standards for supervision.
• Learn about the evolving landscape of ESG ratings and their use in capital markets.

Duration

10 Days

Course content

Module 1: Introduction to ESG Factors and Sustainable Finance

• Defining ESG (Environmental, Social, and Governance) factors and their interlinkages for your module.
• Understanding the concept of sustainable finance and its importance for economic development.
• Exploring the business case for ESG integration in financial markets.
• Examining the different stakeholders involved in the sustainable finance ecosystem.
• Understanding the evolving landscape of ESG investing and financing.

Module 2: The Financial Materiality of ESG Risks and Opportunities

• Understanding how environmental factors (e.g., climate change, resource scarcity) can translate into financial risks for capital market participants for your module.
• Analyzing the financial implications of social factors (e.g., labor practices, human rights, community relations).
• Exploring how governance factors (e.g., board structure, executive compensation, shareholder rights) impact financial performance and stability.
• Recognizing the opportunities for innovation and growth in sustainable finance.
• Understanding the concept of double materiality in ESG considerations.

Module 3: Supervising Climate-Related Risks in Capital Markets

• Understanding the physical and transition risks associated with climate change for capital market participants for your module.
• Exploring frameworks for climate risk assessment and scenario analysis (e.g., TCFD).
• Analyzing the implications of climate risks for different asset classes and financial sectors.
• Understanding supervisory expectations for climate risk management and disclosure.
• Examining the role of stress testing in assessing climate resilience.

Module 4: International and National Regulatory Developments in ESG

• Reviewing key international initiatives and regulations related to ESG disclosure and integration (e.g., EU Sustainable Finance Action Plan, Task Force on Climate-related Financial Disclosures - TCFD) for your module.
• Analyzing national regulatory frameworks and their specific requirements for ESG in capital markets.
• Understanding the evolving landscape of mandatory and voluntary ESG reporting standards.
• Exploring the role of international standard-setting bodies in shaping ESG regulation.
• Discussing the challenges and opportunities in achieving global harmonization of ESG regulations.

Module 5: Incorporating ESG into Supervisory Risk Assessments

• Developing methodologies for integrating ESG factors into the risk assessment frameworks used by capital market supervisors for your module.
• Identifying relevant ESG risks for different types of supervised entities.
• Assessing the adequacy of ESG risk management processes within financial institutions.
• Incorporating ESG considerations into prudential supervision and market conduct oversight.
• Utilizing ESG data and metrics in supervisory risk analysis.

Module 6: Promoting Sustainable Finance through Supervisory Guidance

• Exploring strategies for supervisors to actively promote the development of sustainable finance within capital markets for your module.
• Developing supervisory guidance and expectations on ESG integration for supervised entities.
• Encouraging the issuance of green bonds and other sustainable financial instruments.
• Fostering dialogue and collaboration with market participants on sustainable finance initiatives.
• Supporting the development of ESG-related skills and expertise within the financial sector.

Module 7: Supervising Green Bonds and Sustainable Financial Instruments

• Understanding the characteristics and principles of green bonds and other sustainable financial instruments (e.g., social bonds, sustainability-linked bonds) for your module.
• Analyzing the verification and certification processes for green and sustainable bonds.
• Exploring the challenges of greenwashing and ensuring the integrity of sustainable finance markets.
• Developing supervisory approaches to monitor and regulate the issuance and trading of sustainable financial instruments.
• Promoting transparency and comparability in the sustainable bond market.

Module 8: Evaluating ESG Reporting and Disclosure Practices

• Understanding the key elements of effective ESG reporting and disclosure by capital market participants for your module.
• Analyzing different ESG reporting frameworks and standards (e.g., GRI, SASB, IFRS Sustainability Disclosure Standards).
• Evaluating the quality and comparability of ESG data disclosed by companies and financial institutions.
• Identifying best practices in ESG reporting and disclosure.
• Exploring the role of assurance and verification of ESG information.

Module 9: Engaging with Supervised Entities on ESG Integration

• Developing effective communication strategies for engaging with capital market participants on their ESG integration efforts for your module.
• Understanding the challenges and opportunities faced by supervised entities in implementing ESG practices.
• Providing guidance and support to facilitate the adoption of ESG considerations.
• Encouraging the development of internal expertise and capacity on ESG issues.
• Fostering a collaborative approach to advancing sustainable finance.

Module 10: Mitigating Systemic Risks Arising from Environmental and Social Factors

• Understanding how environmental and social risks can contribute to systemic financial instability for your module.
• Analyzing the potential for cascading impacts of climate-related events and social disruptions on the financial system.
• Exploring the role of macroprudential policies in addressing systemic ESG risks.
• Developing supervisory strategies to enhance the resilience of the financial system to environmental and social shocks.
• Promoting international cooperation on systemic ESG risk mitigation.

Module 11: The Role of Data and Technology in ESG Supervision

• Exploring the increasing availability and use of ESG data in capital markets supervision for your module.
• Understanding the challenges and opportunities in accessing and analyzing ESG data.
• Exploring the potential of technology (e.g., AI, data analytics) to enhance ESG risk assessment and monitoring.
• Analyzing the role of data providers and ESG ratings agencies.
• Promoting standardization and comparability of ESG data.

Module 12: Implications of Different ESG Taxonomies and Standards

• Understanding the purpose and structure of different ESG taxonomies (e.g., EU Taxonomy) and their implications for capital markets supervision for your module.
• Analyzing the impact of different ESG standards on reporting and investment decisions.
• Exploring the challenges of interoperability and comparability across different taxonomies and standards.
• Understanding the role of supervisors in promoting the adoption and consistent application of ESG taxonomies.
• Discussing the potential for global convergence of ESG taxonomies and standards.

Module 13: Supervising ESG Ratings and Their Use in Capital Markets

• Understanding the role and influence of ESG ratings in investment decisions and capital allocation for your module.
• Analyzing the methodologies and data sources used by different ESG rating agencies.
• Exploring the challenges related to the consistency, comparability, and reliability of ESG ratings.
• Discussing potential conflicts of interest and the need for greater transparency in the ESG ratings industry.
• Considering the role of supervisors in overseeing the quality and use of ESG ratings in capital markets.

Module 14: Case Studies in ESG Supervision and Sustainable Finance Initiatives

• Analyzing real-world examples of how different jurisdictions are integrating ESG factors into their capital markets supervision for your module.
• Examining successful sustainable finance initiatives and the role of supervisors in their development.
• Discussing the challenges and lessons learned from practical implementation of ESG supervision.
• Exploring innovative approaches to promoting sustainable finance through regulatory action.
• Fostering discussion and knowledge sharing based on practical examples.

Module 15: Developing an ESG Supervision Strategy

• Guiding participants in developing a strategic approach for integrating ESG considerations into their capital markets supervision responsibilities for your module.
• Identifying key priorities and objectives for ESG supervision within their context.
• Assessing the necessary resources and expertise for effective ESG oversight.
• Developing a roadmap for implementing ESG-related supervisory measures.
• Planning for continuous learning and adaptation in the evolving field of sustainable finance.

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 7 working days before commencement of the training.