WHY THIS COURSE?

By the very nature of their businesses and operations, financial institutions are intrinsically exposed and linked to the consequences of important concepts such as climate change. How institutions choose the assets they finance, the tools and structures they use, how they operate and how they report on their activities is crucial to measuring and managing how sustainable a financial institution is deemed to be. To ensure this process takes place effectively, the development and implementation of a robust sustainability framework is a vital part of the management and governance of a modern financial institution.

This two-day intensive physical program will review key risks, including climate risk, and how they affect and influence a financial institution. The program will also examine how the effective identification of these risks can assist a financial institution in pinpointing where and how sustainability can be further incorporated into their businesses and activities, and what the operational response to climate stress and shocks should be. The course will examine key regulatory initiatives and their implications for developing sustainability frameworks. Sustainability disclosure and reporting requirements will be covered in detail, as will be the practical mitigation of greenwashing.

Agenda

DAY 1

Session 1: Assessing the Sustainability Timeline and Responses

• Dealing with disruption and shocks – a stress assessment
• Emerging risks for sustainable finance – climate change
• A global snapshot of sustainability principles and their impact on financial services
• Integration of sustainability principles in the financial sector – a summary of approaches
• The Malaysian case: Bank Negara Malaysia Financial Sector Blueprint (2022-2026), Securities Commission Sustainable, Responsible Investment guidelines

Session 2: Islamic Finance and the Global Sustainability Agenda

• Sustainability challenges for Islamic finance post-crisis
• The Islamic finance approach: responsible financing standards in Islamic jurisdictions
• A reminder of the key tenets of value-based intermediation (VBI)
• Sustainability strategies for enhancing Islamic financial market resilience:
• Assessing Islamic finance sector strategies internationally: Turkey vs Malaysia
• VBI/T – converging the objectives of Islamic law with financial sector responsibility
• VBI/T Assessment Framework (VBIAF) and social impact scorecard development
• VBI/T sectoral guide and the incentive-driven approach
• Corporate value intent – ethical financing as a strategic statement

DAY 2

Session 3: Reporting and Disclosure of Sustainability for Islamic finance

• Sustainability reporting and disclosure for Islamic financial institutions
• What are the expectations? Reviewing the GRI standards, IFRS and TCFD guidelines
• Case studies: Assessing first mover Sustainability and Social Impact reporting of Islamic banks
• Considering KPI-driven sustainability targets for Islamic finance
• Mini cases of benchmark sustainability disclosures in banking, capital markets and Takaful practice

Session 4: Sustainability Arbitrage and Greenwashing Risk – Recalibrating the moral compass

• Understanding sustainability arbitrage and defining the responsibility parameters
• Contrasting the value-based intermediation (VBI), VBIT (VBI for Takaful) with ESG and sustainability principles – ensuring ethical reporting practices
• Greenwashing risks and the discerning stakeholder
• Case studies of recent greenwashing incidents in the financial sector, the repercussions and risks
• Strategizing for the short to medium term: sustainability, social impact and Shariah best practice