Novotel Budapest Danube Budapest - Hungary Climate Risk Financing...

Climate Risk FinancingMasterClass

17-18 September, 2020 Novotel Budapest Danube Budapest - Hungary

Gerhard Mulder

• Understandingofthe“impactchains”ofclimatechangeonindi-

vidualassets,portfoliosandmarkets

• Understandthelinkbetweenclimateimpactsandfinancialper-

formance

• Gaininsightoncurrentpolicyresponsesanddevelopscenarios

forfutureresponses

• LearnhowtocomparedifferentTCFDreportsfromsimilarcom-

paniesinthesamesector

• Learnhowtoengagewithyourclientsonclimaterisk

IntroductIon

Learn how to recognize, analyse, manage, and report on climate risk in the financial sector.

[email protected] +36 1 848 0515www.glceurope.com


17-18 September, 2020Novotel Budapest DanubeBudapest - Hungary

IntroductIon

“Practical guidance for financial institution on all aspects of climate risks with a specific focus on how to implement the recommendations of the Task Force on

Climate Related Financial Disclosures (TCFD)”.

What is climate change and why is it important to the financial sector?Manypeopletendtotreatextremeweather,heatwaves,theriseofrenewableenergy,andmeltingicecapsas independentunrelatedevents.However, theyarepartof the largerphenomenaofclimatechangeanditsresponses.Wethereforemuststartwithathoroughunderstandingofwhatclimatechangereallyis.Notunderstandingclimatechangeanditsimplicationsmaymeanthatyoufailtospotnewtrendsthatwillimpactyourclientsandthemarketstheyoperatein.

Climate change is emerging as amajor corporate and financial issue.climate change is not a ‘future problem’ anymore. Global climate changehas alreadyhadobservableeffectsontheenvironment.Effectsthatscientistshadpredictedinthepastwouldresultfromglobalclimatechangearenowoccurring:lossofseaice,acceleratedsealevelriseandlonger,moreintenseheatwaves.

climate change creates risks in four different ways: regulatory risks (such as newlegislationorcarbonpricing),physicalrisks (suchasextremeweathereventsor lossofproductivity), technological risks (such as electric vehicles or renewable energy), andsocialrisk(suchastheanti-coalcoalition).Theserisksextendtosupplychains(upstream)aswellasmarketchanges(downstream).

Investors and regulators, such as central banks, are taking notice. They believe thatclimatechangepresentsanewsystemicriskthat isnotyet fullyunderstood.Theyaretherefore pressing formore transparency through the recommendations of the TaskForceonClimateRelatedFinancialDisclosures (TCFD).Financial institutions therefore must develop an understanding of what climate change means to them, which actions they can take, and how they can report on their activities.

Participantswilllearnaboutclimatetrends,currentpolicyresponses,howclimatechangeimpactsportfolios,howtoclosethedatagap,workthroughcasestudies,learnhowtoquantifyclimaterisk,andapplytheClimateRiskSensitivity/ImpactMatrix toyourowninstitution.

LearnIng objectIves

• Understandingofthe“impactchains”ofclimatechangeonindividualassets,portfoliosandmarkets

• Understandthelinkbetweenclimateimpactsandfinancialperformance

• Gaininsightoncurrentpolicyresponsesanddevelopscenariosforfutureresponses

• LearnhowtocomparedifferentTCFDreportsfromsimilarcompaniesinthesamesector

• Learnhowtoengagewithyourclientsonclimaterisk




Gerhard’s career in climate finance spanned both the public and private sector, having worked in

consulting in Washington DC, environmental markets on Wall Street, and for the Dutch government

(Netherlands Enterprise Agency) to implement the Kyoto Protocol. In 2005 he set up the climate

finance desk at ABN AMRO Bank and positioned the bank as one of the first global banks in the

carbon market. In 2010 he joined Rabobank International to develop an electronic trading platform

for environmental commodities such as carbon credits and renewable energy certificates. In 2010

he switched back to the public sector and joined a leading non-profit (IUCN) in the Netherlands.

At IUCN he advised the Netherlands government on developing financial instruments to attract

private sector climate finance.

He co-founded Climate Risk Services (CRS) together with a non-profit, Climate Adaptation

Services (a spin-out from the Dutch government). CRS combines climate data, financial knowledge

and sector expertise to develop climate risk services to a range of public and private sector

organisations. Some of their financial sector clients include leading banks, institutional investors

and Sovereign Wealth Funds. Gerhard completed his MBA at Oxford in 2018 with distinction. He

studied environmental economics and international affairs at Columbia University in New York,

and Public Policy at the University of Amsterdam.

Meet Your Trainer: Gerhard Mulderdirector and co-founder climate risk servicesamsterdam, netherlands

soLvIng your probLems

Understand how climate change impacts your clients. Thiscoursewillhelpyouunderstandhowclimatechangecreatesbothtransitionrisksandphysicalrisks.

How to close the data gap?Thiscoursewillhelpyouunderstandthedatarequirementsforaclimateriskanalysisandidentifysourcesforclimatedata.

How should I report on climate risks?Thiscoursewillhighlightcurrentbest-practicesandbuildontherecommendationsoftheTCFDtoprovideguidanceonfuturereportingrequirements

• InvestorRelations• RiskManagers• StrategyManagers• CorporateSocialResponsibilityManagers

WHo sHouLd attend




reGIstratIon, WelcoMe tea, coffee, netWorkInG Climate trends

• • Rising temperatures• • Heat stress• • Sea level rise• • Water scarcity projections

Policy responses

• • UNFCCC• • International Panel on Climate Change (IPCC)• • From Kyoto to Paris: a history of climate agreements• • Changing accounting standards

Climate disclosure trends: Task Force on Climate Related Financial Disclosures

• • What is the TCFD and why is it important• • What is scenario analysis and how can companies apply this to climate risk?• • Status on the implementation of the recommendations• • Using the TCFD to integrate climate risk into the business• • Reporting climate risks in the annual report•

Understanding Climate Risk to Investors

• • Transition risk “impact chains” defined: including examples• • Physical risk “impact chains” defined: including examples• • How can climate risk be quantified?• • Current work on standardization by the ISO• • • •

Climate risk and operational risk

Case study: business and supply chain interruptions. We will look at a mining company that is listed on the London Stock Exchange. How can climate risk impact the operations of the asset? We will look at the asset itself as well as upstream and downstream risks. Which risk mitigation options does the company have?

Climate change and credit risk

• • Key components to assess impact of climate risk on credit risk• • Identify channels through which climate risk can impact cash flows, collateral and capital• • Strategies to update credit risk models

Day1climate risk Financing masterclass

08:30

09:00

11:15

14:00

15:00

16:15

17:15

tea, coffee, netWorkInG 11:00


end of day 118:00 END

luncheon 13:00




tea, coffee, netWorkInG Climate change impact on portfolios

• • What investment portfolios are especially at risk?• • Physical climate risk impacts• • Transition climate risk impacts• • • •

Solutions – what are the leading strategies and products for investors to consider to manage their carbon risks? What are the pros and cons of these?

• • Footprinting• • Exclusions• • Engagement• • Tilting – e.g. passive low tracking error strategies• • Factor investing• • Diversification into low carbon assets/investment – eg. Renewables• • • •

Climate Risk Game

The group will be divided into sub-groups representing different stakeholders. Each stakeholder has its own goals and interests. We will play several rounds. In each round, new information will be presented.

Closing the climate data gap

• • What are the current sources of climate data and how can they be accessed?• • From Data to Information: trends to move from passive data to actionable information• • Applying the Climate Risk Hazard/Impact Matrix•

Dilemmas

• • Time horizon uncertainty• • Populism/policy uncertainty• • Inter-generational equity• • Who will pay for adaptation

Day2climate risk Financing masterclass

08:45

09:00

10:45

13:30

15:15

16:00


tea, coffee, refreshMents & netWorkInG 15:00

end of day 217:00 END

luncheon 12:30



www.glceurope.comVisit for more details: www.trainergram.com


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About GLC

Global Leading Conferences (GLC) is an industry leader in the field of business intelligence. We provide interactive & impactful business platforms and networking opportunities for senior level executives by bringing them together for B2B Conferences, Global Summits, Training & Workshops. Being customer focused and having our client’s priorities at the forefront, are amongst our core values and is of high importance to the way we operate our business.Our passion for customer satisfaction and results, drive us to work with industry experts closely - who fully understand their peers interests and day-to-day challenges - in order to deliver the most impactful events. We are specialized in industries such as; Pharmaceutical, Banking & Finance, Energy, Oil & Gas, IT & Communication, Sales & Marketing, Law and Human Resources.Our commitment is to deliver the latest information to our clients, while maintaining highest quality and standards. By attending GLC events your company will be able to apply advanced strategies to your operations, gain the latest know-how’s and benchmark yourself higher against the competition while enjoying a 5 star environment.

What is it?

• No travel or logistic expenses for the team (we deliver it at your facilities)

• maximize ROI with a depth tailored content accordingly to your corporate needs

• 360 degrees GLC Learning experience – Individual pre-questionnaire for each participant, several case studies and post training diagnose with participants

• maturity assessment for the team during the preparation of the course

Contact us for more information and tailored details: [email protected]

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