Our research agenda
We believe that sustainability is fundamentally different to other forces that have shaped the financial sector in the past. Regulatory change has typically been a driver for many structural changes that have developed in response to a crisis. Sustainable Finance is different because it is being driven as a set of ideals that challenge our beliefs and ways of working.
Climate risk has been centre-stage when considering the new risks that financial institutions and corporations will face. Banks are re-considering the structure of their loan portfolios and working on new stress tests. Investment managers and asset owners are reviewing the nature of their investments. Corporations are developing Environmental, Social and Governance (ESG) policies to demonstrate their commitments to shareholders, lenders and stakeholders. As part of this process of change it is important that social and governance issues are explored in more depth.
Traditional financial innovation for banks and investment managers has been focused on individual customer needs rather than designing for collective goals. Sustainable finance requires an acceptance of external principles that presents three core challenges.
First, a product design process that starts by having to agree to mutually acceptable sustainability principles is going to be challenging. While it might seem straightforward to agree on high-level development goals, there will be differences of opinion about how to pursue them. A bank, investment manager or asset owner will need to decide how to map their organisation’s activities and processes against its chosen set of sustainability principles.
The second challenge is codifying those ideas into financial products, whether loans, deposits or investments. The legal and regulatory frameworks exist but are changing. Every product design creates new incentives for borrowers, lenders, buyers and sellers which can be challenging to explain and understand. There are risks to getting this wrong, both commercially and reputationally.
The third and perhaps the biggest challenge is measuring impact. How can we know that these financial innovations are making a difference? Do they genuinely act in support of the principles that we adhere to? This is more than just a logistical issue - there are cultural and ethical issues to consider.
We have developed a series of work around these challenges and will be publishing insights over time that we believe will be relevant to practitioners along with academic insights.
Educational programmes
The Centre offers training and short courses that can be designed for purpose depending on the level of staff seniority and the degree of familiarity with sustainable finance. The Centre also supports qualifications and programmes that are created by The London Institute of Banking & Finance.
Typical content includes:
- Introduction to the principles of sustainable finance
- Aligning the organisation to the SDGs
- Integrating climate/biodiversity risk into risk management
- The role of ESG in wealth management
- Reporting and disclosures (eg. TCFD)
- Sustainability leadership and governance
- The role of central banks and regulators
- Designing financial products for ESG.
Short courses and training
The purpose of short courses is to impart specific knowledge to a focused audience. The outcomes from this type of course should be well-defined and have an immediate practical benefit for your organisation and staff.
We can design and deliver those programmes face to face, virtually – or through a combination of the two. Courses are taught using case studies, interactive exercises and group work to bring the learning to life.
Sustainability in trade finance
In our continued efforts to promote education around sustainable finance, we’re working with Coastline Solutions to provide access to a unique opportunity for you to upskill from the comfort of your own home, in just 12 hours.
The Sustainability in Trade and Trade Finance programme at a glance:
- Online training – access material anytime, anywhere and earn 12 CPD points.
- Extensive content – from Trade Finance Sustainability experts, learn about the issues, governance and best practices.
- Supporting sustainability – demonstrate your knowledge and commitment to sustainability in international trade.
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Qualifications
LIBF runs a post-graduate level programme in Sustainable Finance that is currently only available in the Middle East through the Abu Dhabi Global Market Academy. We are currently exploring alternative formats and geographical venues for similar courses.
Certificate in Sustainable Finance - Registration
In conjunction with the Abu Dhabi Global Market Academy The London Institute of Banking & Finance is presenting its first Certificate in Sustainable Finance in the Middle East and North Africa region, please register your interest.
Register your interest