Core module
Nature- and Climate-Related Financial Risk
A half-day course for finance, risk and strategy teams on how climate and ecosystem decline reach prices, insurance, asset values and regulation, and how to screen a business unit for exposure.
Central banks and insurers now treat the loss of ecosystem services as a source of financial risk. For a company it arrives through input prices, insurance terms, asset values and regulation, and most finance teams have no first-pass view of where their own exposure sits and how to pro-actively manage it. This course builds that view.
The first part covers the economics of natural capital and the main channels through which ecological stress affects an organisation, using published work from the NGFS, the ECB, the IMF and the insurance sector. The second part is practical. Participants use a screening template to assess one case study business unit, develop scenarios for how its exposures could unfold, and generate pragmatic mitigation or adaptation solutions that can lower exposure effectively.
Participants leave with the ability to perform a risk analysis and evaluate mitigation solutions. They will have completed a first-pass screen of one business unit, developed a ranked list of its exposures, a short list of mitigation or adaptation options, and a set of scenarios for how those exposures develop.
Outcomes
- Explain how the decline of natural capital reaches financial statements, through input prices, insurance availability, risk premia, asset values and regulation.
- Use the transmission channels set out by institutions, including the Network for Greening the Financial System (NGFS) and the European Central Bank (ECB), to describe an organisation's exposure and inform materiality assessments.
- Complete a first-pass exposure screen for a case study business unit, covering inputs, sites, customers, financing and regulation.
- Adopt a rigorous methodology for mapping adaptation and mitigation solutions to hazard exposure.
- Present business exposure and mitigation scenarios in a disclosure document.
Other modules
Sustainability Frameworks and Standards in Practice
Sustainability, reporting, data and assurance teams. Groups up to 20.
Sustainable Business Model Design
C-suite, strategy, new venture and business-model teams, and founders. Groups up to 20, working in teams of three or four.
Sustainability Targets and Environmental Limits
Chief executives, finance directors, chief sustainability officers and board members. Groups up to 20.
Does your strategy have a future within planetary boundaries?
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