New three-day sustainable finance course takes on rapidly changing landscape

A new short course in Sustainable Finance UCD Michael Smurfit Graduate Business School is aimed at helping financial services professionals acquire the new skills and knowledge necessary to capitalise on the growth opportunities presented by a rapidly changing financial landscape. The highly practical and intensive three-day course runs from April 9th to 11th next and will cover ESG governance issues and reporting, sustainable finance and investing, and climate risk management among other key topics.

The new course is particularly timely both in light of the government’s ambition to establish Ireland as a global hub for sustainable finance and the urgent need to tackle the climate emergency. “Banks and financial institutions are increasingly recognising the importance of sustainable finance,” says Julie Byrne, associate professor of finance at the school.

“We’ve all seen the extreme weather events like storms and floods around the world which have been increasing with alarming frequency and there is a growing realisation that a tipping point has come. Governments around the world are committed to the transition to net zero and regulatory bodies in Ireland and globally are placing greater emphasis on sustainability and integrating ESG factors into financial regulation. Financial institutions must comply with evolving regulatory requirements related to sustainable finance to avoid penalties and maintain their competitiveness.”

There are also risk management implications. “Environmental and social risks, such as climate change and social inequality, can have significant financial implications for banks and financial institutions,” Byrne notes. “By integrating sustainability considerations into their risk management frameworks, these institutions can better identify and mitigate potential risks, ensuring long-term financial stability.”

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She points to opportunities as well. “Deploying capital to drive the transition to net zero will be critical to combat climate change. Worldwide, it is estimated that the cost of the transition will be between $125 and $175 trillion (€115-€161 trillion) from now to 2050. That’s a huge amount of capital to be mobilised. Financial organisations here in Ireland have an opportunity to be leaders in this.”

Market demand is another driver. “There is growing demand from consumers, investors, and businesses for sustainable financial products and services,” she adds. “As awareness of environmental and social issues increases, individuals and organisations are seeking financial institutions that align with their values and offer sustainable investment opportunities. This presents opportunities for innovation and new revenue streams. Financial institutions can develop innovative products and services tailored to meet the growing interest in sustainable investment options.”

This will also offer enhanced access to capital as investors increasingly take ESG factors into consideration when making investment decisions.

“Embracing sustainable finance practices also enhances the reputation and brand image of banks and financial institutions,” Byrne notes. “By demonstrating a commitment to environmental and social responsibility, institutions can attract socially conscious customers and investors, thereby strengthening their market position.”

The new course is aimed at busy managers and executives working in banking, insurance, asset management, wealth management, investment banking, financial regulation, NGOs, and Government and will help them avail of these opportunities as well as to address the challenges presented by sustainable finance.

“It will introduce them to sustainable finance innovations and the tools they need to analyse return on investment in this area,” says Byrne. “It will also look at how ESG data can be interpreted. This is not very easy to quantify. It is not as precise as in traditional finance where the focus is on maximising profit. Sustainable finance differs in that it takes account of society as well as profit. It aligns with the UN Sustainable Development Goals and seeks to integrate multiple stakeholders.”

From a practical point of view, new regulations and reporting requirements surrounding climate risk are placing firms under increasing pressure to link fundraising to sustainability criteria. “The course addresses the needs of managers looking to understand the complex landscape of sustainable financing. It will also introduce the reporting requirements underpinning sustainability, how these can be linked to financing structures, developments in sustainable investing, and how companies and regulators assess climate-related financial risk.”

Financial services organisations have little choice but to embrace the new agenda. “Sustainable finance is now permeating all activities of organisations,” she says. “It is a key focus for firms and their interaction with stakeholders. While it may not be as focused on maximising profit as traditional finance, leaders in the area are actually going to be more profitable. They will be more attractive to customers and more competitive. Sustainable finance will not lower profits, it will be detrimental to the bottom line if organisations don’t adapt. Being a leader will enhance the bottom line, not detract from it.”

Applications for the Sustainable Finance short course are now open. For more information, contact exec.dev@ucd.ie