About the Centre for Sustainable Finance
We recognise the financial sector's role in meeting the development and environmental targets laid out in the United Nations Sustainable Development Goals and the Paris Agreement on climate change. It is through sustainable finance that financial markets will be able to adjust and allocate resources effectively. We established the Centre for Sustainable Finance here at LIBF to provide insights to practitioners – whether in markets, regulation, risk management or government.
One of our key institutional strengths is the relationships we've fostered over time in the financial industry both at home and overseas with commercial banks, investors, regulators and governments.
The Centre has established links in Asia, the Americas and the Middle East and is a founding member of the European Research Network for Sustainable Finance.
Our research agenda
Sustainability is different to other forces that have shaped the financial sector in the past. Regulatory change in response to a crisis has typically driven structural changes. Sustainable finance is driven by ideals that challenge 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, it's important to explore social and governance issues.
Traditionally, financial innovation for banks and investment managers has focused on individual customer needs rather than collective goals. Sustainable finance requires an acceptance of external principles that present three core challenges.
First, designing products that reflect mutually acceptable sustainability principles is going to be hard for some to accept. 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 hard to explain and understand. There are commercial and reputational risks to getting this wrong.
The third, and perhaps biggest, challenge is measuring impact. How can we know that these innovations are making a difference? Do they genuinely act in support of the principles we adhere to? This is more than just a logistical issue – there are cultural and ethical issues to consider.
We regularly publish white papers, insights and thought leadership on these issues to help practitioners.
Read our insights on sustainable finance
Educational programmes
The Centre offers training and short courses that we can adapt and tailor to the level of your staff's seniority and how familiar they already are with sustainable 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, such as the Task Force on Climate-Related Financial Disclosures (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 includes:
- online training – access material anytime, anywhere and earn 12 CPD points
- extensive content – from trade finance sustainability experts, so you can learn about the issues, governance and best practices
- supporting sustainability – demonstrate your knowledge and commitment to sustainability in international trade.
Discover more Register today
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 exploring alternative formats and geographical venues for similar courses.
Certificate in Sustainable Finance – registration
In conjunction with the Abu Dhabi Global Market Academy, we're presenting our first Certificate in Sustainable Finance in the Middle East and North Africa region. Please register your interest.
Register your interest