Climate Change: Managing Financial Risks and Green Finance Initiatives


01 - 01 Jan, 1970


To Be Determined;

Why Attend?

In 2022, it is no longer a question of whether central banks should address climate change, but rather how and when.

For central banks, a key question is how to implement climate change at a strategic level when it affects the whole central bank, yet in a variety of specialised and localised ways. As market players central banks buy and sell assets which have ESG ratings; as supervisors they assess and address the financial risks from climate change; and lastly as institutions they have a carbon footprint.  

Yet, questions remain around how to incorporate climate change into existing mandates, objectives, policies and strategic plans.

course-obj_img Course Objectives

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    By the end of the course, participants will be able to:

    • Incorporate climate change and sustainability into strategic plans
    • Understand the interaction of climate policy and central bank mandate
    • Assess the impact on domestic and foreign treasury operations
    • Gain insight into scenario analysis and stress testing climate risks
    • Understand how central banks are locating and resourcing climate change initiatives

course-obj_img Target Audience

This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings.

Course introduction session led by the chair

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations

Climate risk and the ESG agenda: impact and implications for central banks

  • Climate change as the emerging source of local and systemic instability
  • Impact and implications for monetary policy strategy, conduct and implementation
  • Overview of new roles and responsibilities for central banks in the areas of green finance and ESG
  • Discussion: how are central banks tackling climate risk in the delegates’ home jurisdictions?

Integrating climate change and green finance into central bank mandates

  • Do climate-related risks and mitigation policies fit into central bank mandates and objectives?
  • Should central banks be mandated to play a role in greening the financial system?
  • Comparing mandates and policy tools in high-income regions vs. developing economies
  • Discussion: what are the risks of overstretching central banks’ mandates?

Greening central banks’ internal operations

  • What are central banks doing to green their internal operations?
  • Key sustainability goals and targets for cutting central banks’ environmental footprints
  • Successes and challenges from central banks with advanced green initiatives
  • Discussion: which areas are participants’ own organisations focused on greening?

Adapting monetary policy operational frameworks to reflect climate-related risks

  • The challenges of assessing the consequences for monetary policy effectiveness
  • Identifying the options that a central bank could consider
  • Assessing potential climate-related adjustments to monetary policy operational frameworks
  • Discussion: is disclosure a prerequisite for other potential adjustments?

Sustainable investing: key challenges and opportunities

  • Emergence of sustainable investing as the new normal
  • Impact of ESG mandate on the investment strategies of central banks
  • Tips for balancing financial and sustainability requirements
  • Criteria for assessing the suitability of available products and services

Climate stress testing and modelling

  • Climate change: risks for financial stability
  • Climate change: the supervisory approach
  • Climate change stress testing: design and conceptual issues
  • Case studies: lessons and some results from climate change stress testing

Climate change and the data challenge

  • Overview of climate-related data needs, availability and gaps
  • Key environmental metrics identified by central banks
  • Discussion: what challenges does data pose for participants own organisations?

Toolkit for assessment of climate-related physical risks

  • Dimensions of physical risk assessment
  • Data sources and geospatial tools for physical risk analysis
  • Experimental indicators for physical hazards

Green taxonomies and disclosure requirements

  • The EU green taxonomy and its applications
  • Disclosure requirements linked to the EU green taxonomy
  • Estimating the taxonomy-alignment and the exposure to transition risk in financial portfolios
  • Discussion: which taxonomies are participants using in their own organisations?

Effective disclosures: improving governance by improving transparency

  • Areas of the TCFD framework useful for central banks’ own disclosures
  • NGFS Guide on climate-related disclosure for central banks
  • Opportunities and challenges of climate disclosures
  • Discussion: should central banks lead by example on climate-related disclosures?

Incorporating climate change and sustainability into strategic plans

  • Developing a clear strategic view of central banks’ appetite for climate-related risks
  • Introducing explicit strategies to support the transition to net-zero
  • Liaising and coordinating with supervisors and policymakers
  • Case study: a central bank’s strategic plan for climate change

Closing remarks and delegate action plans

Concluding session led by the chair

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

1970 - Course Type & Date

DATE: 01 - 01 Jan, 1970

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