Background:

Climate change has the potential to create shocks to growth, financial stability, and the safety and soundness of regulated entities. Climate changes impacts across geographical boundaries and is all pervasive and it wouldn’t materialise in part or on individual basis but manifest and impact collectively in a region or industry. The climate risk impacts the real sector and by extension bank’s exposure to these sectors, which has a direct bearing on risk management frameworks for banks and other financial institutions. Transition to a net-zero carbon emission target will entail adjustment in the production processes of industries that are directly or indirectly exposed to excessive use of fossil fuel and their impact on overall banking system need to be monitored closely. Therefore, ensuring access to adequate transition finance and supporting technology would be a critical process, and also alignment of the business strategy with the transition plans driven from the top at Board level. In total, banks and financial institutions will play a key role in creating a low carbon economy and in supporting the national climate commitments.

Objectives:

This one-day workshop being conducted in collaboration with the Sustainable Finance Group, Department of Regulation, RBI, aims at sensitization on climate related risks and related aspects for the Board Members. It is necessary for a good understanding of the transition plans for climate risks and preparedness at Board level in the respective financial intermediaries.  It will also give an opportunity to interact with the regulators and understand the concerns of the regulators in the area of climate related risk and sustainability.

Workshop Highlights:

The workshop will deal with the following:

• Evolving Regulatory Approaches to Climate Finance
• Climate Risk Mitigation Journey
• Climate related risks and financing climate change—Regulatory Expectations
• Governance and Strategy for Climate Risk Mitigation
• Integrating climate risk management with traditional risk management
• Climate Finance: Issues and Challenges for Banks