Introduction
Introduction to ESG for commercial lenders
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1. The Big Picture of ESG
Defining ESG
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Reframing the problem
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Commercial lenders and ESG
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Operational boundaries and the scopes of emissions
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The partnership for carbon accounting financials (PCAF)
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The attribution factor
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Issues in calculating emissions
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Reverse-engineered estimated emissions
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2. ESG and Systems Thinking
ESG and the cost of funding
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Systems thinking
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ESG integration
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Corporate reputation
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Physical climate risks
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3. Case Study
Inputs introduction
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Model and supporting schedules introduction
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Credit metrics and lending ratios introduction
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Calculating credit metrics
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Supporting schedules and financial statements
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Income statement assumptions
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Balance sheet assumptions
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Working capital assumptions
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Lending assumptions
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Live case scenario toggle
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Conditional formatting
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Scenario analysis: Credit metrics
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Scenario analysis: Financial statements
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Scenario analysis: Assumptions feedback
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Case study summary
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4. ESG Trends in Commercial Lending
Potential trends in ESG integration and analysis
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Future ESG trends: Risk rating and due diligence
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Future ESG trends: Client reporting
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Future ESG trends: Pricing and profitability models
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Loss given default
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Capital reserve requirements
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Profitability exercise: Probability of default
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Profitability exercise: Loss given default
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Profitability exercise: Capital requirements
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Profitability exercise: Mitigation strategies
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Conclusion
Course summary
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Ex_Files_ESG_for_Commercial_Lenders.zip
(1.8 MB)
Glossary_ESG_for_Commercial_Lenders.zip
(66 KB)