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Impacts of ESG on Trade Finance (USA)

0 Part Course  |  How risks and opportunities in trade finance are being reshaped by ESG and climate change.

Introduction to Farming Accounts & Auditing Training Course

  • Trade Finance professionals;
  • Sustainability professionals within a banking environment providing support services to banking teams including Trade Finance; and
  • Legal and compliance teams that support trade finance activities within financial institutions.

  • Strikes the balance between covering environmental, social and governance issues, and in-depth analysis of the implication of these issues for trade finance
  • Insight from a practitioner who is a well-recognized figure in this space
  • Perspective based on international experience in ESG
  • Practical insights on ESG policy at the level of companies (clients of trade finance) and financial institution

  • To have an understanding of the key concepts related to environmental, social and governance issues
  • To identify systemic impacts of climate risks on trade and the financial system and how that relates to trade finance
  • To understand key environmental, social and governance risks and how they impact business models of clients of trade finance
  • To apply material ESG factors to: risk frameworks, risks associated with credit, reputational risk
  • To identify sectors and companies that can benefit from opportunities relating to a transition to a low carbon economy
  • Have an understanding of the role banks and traders can play in the transition to a low-carbon society via their products in a commercially viable manner
  • Become familiar with the various evolving ESG regulatory landscape for trade finance
  • Can compare and contrast key initiatives to integrate ESG into trade finance

Part One

ESG issues and their impact on companies

  • Environmental factors
    • Climate change
    • Natural resources
    • Circular Economy (pollution and waste)
  • Social factors
    • Labour rights
    • Human rights
    • Access to basic needs
  • Governance factors
    • Corporate Governance
    • Tax fairness and tax transparency
    • Corruption and bribery

Trade finance exposure to ESG risks

  • Systemic relationships between companies’ activities and ESG issues
    • Impact and dependence of business on natural resources
    • Systemic impact of climate risks on the financial system
  • Deep dive in climate risks
    • Transition risks
    • Physical risks
  • Case Study: Transition vs physical climate risk for typical sectors for trade finance
  • How exposed trade finance is to ESG factors
    • Per sector
    • Per geography
    • Per business model

ESG approaches and materiality

  • Approaches to ESG and implications for trade finance
    • Financial materiality
    • Impact materiality
    • Normative approach
  • Case Study: Financial vs impact approach impact on trade finance products
  • Transmission channels of ESG materiality and risk
  • How ESG can negatively impact trade finance and risk-return
  • ESG data and ratings
  • ESG assessment

Part Two

ESG impact on trade finance

  • How ESG is impacting trade finance products and traders
  • Where and how has ESG had the strongest impact
    • Profitability
    • Cost of risk
    • Reputational damage
  • Banks’ transition plans
  • Key tools to address risk

Impact of sustainable finance regulation on trade finance

  • The impact of regulation on climate change
    • UN Sustainable Development Goals
    • Paris Agreement
    • Financial Stability Board’s Taskforce for Climate-related Financial Disclosure
  • Mismatch between trade finance and ESG regulation
  • Challenges of making trade finance sustainable
  • Key initiatives to support integrate ESG in trade finance
    • ICC
    • ITFA
  • Case Study: Compare and contrast resources available from key industry initiatives and what is relevant for your company/role

Engaging with clients on sustainable trade finance

  • Reasons for clients’ interest
  • Pitching products to clients (and addressing concerns)

Group exercise

Review of a case study on a bank looking to offer a letter of credit to an industrial, exporting company. Participants will be put into breakout groups to review the case study. The exercise will include a comprehensive review of ESG risks and assessment of the impacts, after which participants will jointly develop measures to avoid or mitigate these impacts. There will be a focus on looking for opportunities to convert risks into financing and business, as well as on identifying areas where trade finance has unique requirements to integrate ESG factors. Each breakout group will share its findings as part of a broad group discussion, tying together the learnings of the training.

The trainer is a former banking sector analyst specializing in emerging markets. With experience in trade finance, commodity value chains, syndicated loans, fintech and agritech, he brings a wide range of experience in some of the most dynamic areas of banking. He is a regular speaker at conferences, including those specialized in trade finance, and a commentator in the media.

An economist by training, the trainer was previously Senior Economist at the Economist Intelligence Unit and head of research at pan-African bank, Ecobank. He has worked with international banks, multilateral financing institutions, hedge funds, and investment funds across the globe, and with multinational corporations that have operations in Africa.

The trainer holds a BA and a PhD from the University of Bristol.

ESG and sustainability have become dominating issues in the world economy. This presents a challenge for banks, which are struggling to integrate ESG into their risk management framework of trade finance.

This course has been designed to directly address these challenges, providing bank professionals with the information and context they need to understand how sustainability issues impact their clients, depending on sector, geography and business model, as well as how these issues impact trade finance – risks and opportunities - directly.
Dates coming soon

$1150.00

Discounts available:

Book multiple places on both parts in one order for the below discounts:

  • 2+ places at 40% less = $1380.00
    per person
  • 4+ places at 50% less = $1150.00
    per person
  • 6+ places at 60% less = $920.00
    per person
  • 9+ places at 70% less = $690.00
    per person
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