Fundamentals of ESG and Climate Finance Loans

Introduction to ESG and Climate Finance Loans Training

• The context of debt investing in ESG (Environmental social and governance) and Climate Finance.
• United Nations Sustainable Development Goals
• ESG investment – players and objectives

Green Loans

This session covers green loans, delving into:

• What constitutes a green loan?
• LMA (Loan Market Association) Green Loan Principles
• Green Finance plenary case study & discussion
• Green loan pricing plenary discussion
• Market-based green loan/bond pricing using the Climate Bonds Initiative data
• Use of Proceeds
• Project Evaluation and Selection
• Management of Proceeds
• Reporting
• External Reviews & how to utilise them
• EU Green Deal, regulation & the EU green Taxonomy
• Other Taxonomies

Social Loans

• What is a social loan?
• LMA Social loan principles
• Social loan/bond case study
• The Evolving EU Social Taxonomy
• Social loan core components
• Pricing social loans
• Trends in social lending

Sustainability-Linked Loans

• Defining sustainability-linked loans
• How they differ from green and social loans
• LMA Sustainability-Linked loan principles
• Key Performance Indicators & Sustainability Performance Targets
• Calibration of KPIs and SPTs
• Sustainability-linked loan case study – analyse an issuer’s sustainability framework and second-party opinion

Wrap-Up and Q&A

At Redcliffe Training our ESG Loan Markets course specialist is an experienced international and emerging market capital markets consultant. He actively consults on Climate Finance to International ESG Financial Institutions utilising his technical and leadership knowledge and skills. He has first-hand experience in over 38 emerging and frontier markets as an ESG investor in a range of ESG/Climate and non-ESG debt, equity and loan investment products.

As a former senior banker in EBRD, he led a team which worked closely with multi-industry-sector bankers and risk officers to create loan, bond and equity investments in over 25 local currencies. With considerable knowledge of Debt Capital Market Governance and strategy, our trainer delivers this course through direct experience.

• Understand the strategic importance of ESG & Climate Finance loans.
• Examine the characteristics of green, social and sustainability-linked loans in the context of current loan and capital market transactions.
• Use ‘Climate Bonds Initiative’ public Climate Finance risk data to deepen your understanding of green finance.
• Understand and apply the Loan Market Association’s ESG loan principles: Use of Proceeds, Evaluation, Selection, Management of Proceeds and Reporting to ESG case studies.
• Introduction to EU (European Union) regulations, the EU Green Taxonomy & Reporting directives.
• Examine two leading European borrowers’ Green and EU Sustainable Finance Frameworks & how to conduct due diligence as a lender/investor.
• Introduction to social loans and bonds & the EU Social Taxonomy.
• Explore the creation of social loans and bonds via a case study.
• Understand the roles of external party opinions, verification, assurance & certification during this live, interactive, climate finance online course.

• ESG Loan Markets training focuses on ESG and Climate Finance loans and their associated mechanics
• Uses current market data and transactions to relate best practices
• Trainer has direct experience as an ESG investor & is a Climate Finance consultant to international banks
• In-depth consideration of best practice via recent case studies
• Applies the latest Loan Market Association's Green, Social and Sustainability-linked loan principles
• Explores EU green regulation, the EU green Taxonomy and reporting directives
• Finally, this course considers ESG and Climate Finance risk from both lenders’ and investors’ perspectives

This ESG Loan Markets training course is a ‘must know’ for officers and bankers from:

• Asset Management
• Audit
• Central Banks
• Consulting
• Corporate and ESG Financial Institutions
• Credit Risk
• Finance
• Insurance
• Legal Services
• Marketing
• Pension Funds
• Planning
• Regulators
• Treasury

Green, social and sustainability-linked loans have increased to an estimated $78.6 billion in 2021 (2022 survey by BNPP and City UK) and are set to significantly grow. This interactive session provides participants with an introduction to green, social and sustainability-linked loans in Europe, and will focus on them from a lender’s perspective.

Using current market data and public transactions this ESG and climate finance loans training course will enable participants to understand the practicalities of assessing, pricing and structuring green, social and sustainability-linked loans.

The advanced approach of the EU, its Green Deal, Taxonomy and regulation is considered to inform the learning. Borrowers’ green and sustainable frameworks and second-party opinions are evaluated within ESG case studies to allow participants to recognise best practices in ESG and Climate Finance loans.