Banks have an important role to play on the road to a sustainable world. How do they interpret that? How do you deal with the complexity of ESG risks and the rapid succession of laws and regulations on this theme?
ABN AMRO is happy to share its experiences with a select group of Credit Risk professionals; from vision development on ESG risks to strategy and operational implementation.
Program
On the basis of a number of presentations you will become acquainted with the people and techniques behind this process. In a small-scale setting, four speakers present a separate topic with plenty of room for discussion. There are two rounds of half an hour each. You choose which themes you find most interesting. Afterwards you can continue the discussion in an informal way, during the social drinks.
14.00 – 14.30 | Registration
14.30 – 14.45 | Opening, Ido Gonen, head of Credit Risk
14.45 – 15.30 | Keynote by Sandra Phlippen, Chief Economist ABN AMRO
15.45 – 16.15 | Breakout sessions (round 1)
16.30 – 17.00 | Breakout sessions (round 2)
17.00 – 18.00 | Social drinks
Keynote:
Sandra Phlippen: Why would a bank want to be green?
Break-out sessions:
- Lillyjan Crombach & Petya Willis: Supporting the climate strategy while maintaining the bank’s risk profile
- Bartho Egberink: How to incorporate climate risk into your credit granting and pricing or models
- Siert van Kemenade: Dilemmas when assessing clients on sustainability – Real life cases
- Hilde Veldman & Igor Araujo: Financing non-proven technologies in renewable projects (case study of an offshore windfarm)
Subjects & Background
Why would a bank want to be green?
Keynote by Sandra Phlippen, Chief Economist ABN AMRO
There is a strategy argument for being green and a risk argument. The strategy argument basically evolves around the notion that a bank always operates in the midst of society. Society is transitioning to a net zero society and thus the banks role is to move along. But there is more: a bank can also proactively choose to help steer towards a net zero society.
This has to be a deliberate choice that can in moments and in the short run be costly and require bold moves. However a bank also has solid knowledge about what the implications are for society, its people and its entrepreneurs if global warming keeps increasing. This so-called ‘hot house world’ is something to prevent at practically all costs. A bank has a duty of care to its clients to guide them through the hurdles to help society stay away from a hot house world. It is in the banks interest to make sure that people stay healthy and prosperous also after 2050.
The risk argument for being green as a bank is working in the same direction: clients are more likely to stay resilient and not default if their ability to reduce emissions is greater. Also banks can attract scarce talent from the market at relatively lower costs when there is an authentic strive to improve outcomes in society.
Supporting climate strategy while maintaining the bank’s risk profile
Lillyjan Crombach (Risk Manager) & Petya Willis (Credit Risk Portfolio Analyst)
Climate change is one of the biggest challenges of our time and ABN AMRO is committed to making a difference. As the world moves towards a net zero future, the impact on certain areas of society could be profound. Careful considerations are required to maximise our positive impact on society and climate.
The Climate Strategy requires the bank to re-evaluate its choices in different areas, including Credit Risk. It involves investing in areas with uncertain outcomes. What does that mean for the Credit Risk profile of the bank? How can Credit Risk contribute to the climate strategy? How do the choices of the climate strategy impact Credit Risk?
This session would focus on the link between the Climate Strategy and the Credit Risk Profile of the bank.
How to incorporate climate risk into your credit granting and pricing or models
Bartho Egberink, Lead ESG Implementations Credit Risk
A large number of buildings built before 1970 will face foundation problems. The risks lie mainly with the buyer but these risks are quite often not known or recognized by the owner, buyer or appraiser. Climate change may further increase this risk. For example, prolonged drought causes subsidence and fluctuations in the groundwater level, which increases the risk of pile rot and subsidence of foundations. As a bank, how do you incorporate this risk into your credit granting and pricing or models, knowing that the statistical material is yet insufficient?
Dilemmas when assessing clients on sustainability – real life cases
Siert van Kemenade, Sustainability Risk Analyst
How do we address a client whose operations lead to human rights violations? How big is that “risk”? How do we compare a client stuck in a fossil-based business dedicating significant capital to reducing emissions, versus a client in a renewables refusing to address its supply chain emissions?
Integrating sustainability risk into credit risk is the great challenge of banking in our time. Credit risk analysts of today are expected to deal with these (and more) dilemma’s.
This session will unpack these dilemma’s in cases, explain how ABN AMRO credit risk deals with these cases and how the bank allows analysts to grow in the world of ESG.
Financing non-proven technologies in renewable projects (case study of an offshore windfarm)
Hilde Veldman (Head of Credit Decisioning team GTL, NR, PF) en Igor Araujo (Credit Risk Analyst)
In this presentation you will experience some of the challenges that ABN AMRO faces when we are financing an offshore windfarm. New bigger wind turbines are being installed every day while we do not yet have experience whether they will work for the next 20 years. Energy prices have increased to exceptional heights recently, but will that remain during the 20 year tenor of our financing?
ABN AMRO goes to great lengths to finance the energy transition. However,
you, as a credit analyst, have to make sure we meet our strategic ambitions while at the same time the decision we take will fall within our risk profile. In this session you will learn how we do that.
Details
The number of places is limited. Allocation takes place on the basis of the order of registration and the pursuit of a balanced field of participants. Application and registration are done via XpertDesk. This session is free of charge.
For further questions or comments, please contact Pieter Lammers via pieter@xpertdesk.nl or +31 6 41 45 49 56.
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For further questions or comments, please contact Pieter Lammers via pieter@xpertdesk.nl or +31 6 41 45 49 56.