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Quest Training

Bank Climate Risk & Green Lending Training Course

Equips bank credit and risk teams to price climate risk into lending, stress test portfolios, measure financed emissions and structure green loans.

SFC · Sustainable Finance, ESG & Climate FinanceAll Levels#2991ClassroomEnglish , Arabic
Duration
5 Days
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Free substitution at any time · 30+ days' notice: full refund minus 10%. Cancellation policy

Sectors:Finance, Investment & BankingCategories:Sustainable Finance, ESG & Climate Finance

Course Overview

The Bank Climate Risk & Green Lending Training Course is designed specifically for bank credit, risk, and strategy teams who must manage climate and environmental risk inside the loan book rather than from an investor or corporate perspective. It focuses on how climate risks reach a bank through borrowers, collateral, and sector concentrations, and how lending can finance the transition while protecting asset quality. Banking supervisors increasingly expect climate-related financial risk to be treated as a driver of existing risk categories, not as a separate sustainability topic. Physical hazards can damage borrowers' assets and reduce collateral values, while transition policies, technology shifts, and changing demand can weaken the cash flows of carbon-intensive clients. Credit committees need practical methods to identify, measure, and price these risks. The program covers climate risk transmission channels, climate due diligence in underwriting, sector policies and risk appetite, and scenario analysis and stress testing using the scenarios of the Network for Greening the Financial System (NGFS). Participants will also measure financed emissions using the PCAF standard, assess portfolio alignment with sectoral decarbonization pathways, and set credible sector targets. A strong practical focus is placed on green and sustainability-linked lending. Participants will apply the Green Loan Principles and Sustainability-Linked Loan Principles to product design, performance targets, margin adjustments, and greenwashing controls, and connect them to the UNEP FI Principles for Responsible Banking. Through credit case studies, portfolio exercises, simplified stress tests, and product design workshops, participants will build a bank roadmap linking climate risk, financed emissions, and green lending to credit policy and strategy.

Learning Objectives

  • Analyze how physical and transition climate risks are transmitted to borrowers, collateral, and the bank's main risk categories.
  • Evaluate supervisory expectations for climate-related financial risk and their implications for credit and risk functions.
  • Assess sector and geographic climate risk concentrations across corporate, real estate, and retail loan portfolios.
  • Integrate climate and environmental factors into credit policies, sector policies, risk appetite, and lending limits.
  • Apply borrower climate due diligence, including transition plan assessment and physical hazard screening of collateral.
  • Evaluate the effect of climate risk on probability of default, loss given default, and loan pricing.
  • Design a climate scenario analysis using NGFS scenarios and translate scenario variables into borrower impacts.
  • Apply climate stress testing results to capital planning, risk appetite, and portfolio limits.
  • Calculate financed emissions using the PCAF attribution approach and assess underlying data quality.
  • Assess portfolio alignment against sectoral decarbonization pathways and develop credible sector targets.
  • Design green and sustainability-linked loan products consistent with the relevant loan market principles.
  • Develop a bank climate risk and green lending roadmap aligned with the Principles for Responsible Banking.

Who Should Attend

This training course is designed for bank professionals responsible for credit, risk management, and lending strategy, including chief risk officers, credit risk managers, credit analysts, credit committee members, relationship managers, portfolio managers, and enterprise and model risk specialists who need to bring climate considerations into the loan book. It is particularly relevant to commercial, corporate, Islamic, and development banks, as well as finance companies and banking supervisors, including sustainable finance teams, ESG and environmental and social risk officers, ICAAP and stress testing teams, strategy and planning functions, product managers, and compliance professionals involved in green and sustainability-linked lending. The course will benefit most those working with lending to energy, oil and gas, real estate, construction, agriculture, transport, and manufacturing clients across the Gulf and Africa, where climate risk, transition finance, and supervisory attention increasingly shape credit decisions.

Learning Outcomes

  • Explain how physical and transition climate risks translate into credit losses, collateral impairment, and concentration risk.
  • Interpret supervisory expectations for climate-related financial risk and assess the bank's readiness.
  • Integrate climate factors into credit policies, sector policies, risk appetite, and lending limits.
  • Conduct climate due diligence on corporate borrowers, including transition plan and physical hazard assessment.
  • Adjust credit assessments, covenants, and loan pricing to reflect material climate and environmental risks.
  • Design and interpret a climate scenario analysis using NGFS scenarios for a selected loan portfolio.
  • Apply simplified climate stress test results to ICAAP, portfolio limits, and strategic lending decisions.
  • Calculate financed emissions using the PCAF approach and explain the main data quality limitations.
  • Assess portfolio alignment and propose credible sector targets supported by client engagement plans.
  • Structure green and sustainability-linked loans with clear eligibility criteria, performance targets, and verification.
  • Identify and control greenwashing risks in green lending products and sustainability claims.
  • Develop a bank roadmap linking climate risk, financed emissions, and green lending to governance and strategy.

Course Outline

Course Outline:

Day 1

Climate Risk as a Driver of Bank Credit Risk

  • Physical and transition risk channels to borrowers, collateral, and the balance sheet
  • Climate impacts on credit, market, liquidity, operational, and reputational risk
  • Supervisory expectations, including the Basel Committee climate risk principles
  • Sector and geographic concentrations in carbon-intensive, real estate, and coastal exposures
  • Practical application: Map climate risk channels for a sample loan portfolio and rank exposed sectors
Day 2

Climate Risk in Credit Underwriting & Lending Policy

  • Climate factors in credit policy, sector policies, risk appetite, and lending limits
  • Borrower due diligence: transition plans and physical hazard screening of collateral
  • Environmental and social risk categorization, conditions precedent, and covenants
  • Climate adjustments to ratings, probability of default, loss given default, and pricing
  • Practical application: Assess a corporate credit application and propose climate-related conditions and covenants
Day 3

NGFS Scenario Analysis & Climate Stress Testing

  • Scenario analysis versus stress testing; orderly, disorderly, and hot house world scenarios
  • Translating carbon prices, energy demand, and hazard intensity into borrower financials
  • Top-down and bottom-up approaches, time horizons, and balance sheet assumptions
  • Using results in ICAAP, risk appetite, and limits, with model and data limitations
  • Practical application: Run a simplified transition stress test on a sector portfolio under two NGFS scenarios
Day 4

Financed Emissions & Portfolio Alignment

  • The PCAF standard: asset classes, attribution factor, and data quality scoring
  • Reported, estimated, and proxy client data, including client Scope 3 emissions
  • Portfolio alignment metrics, sectoral decarbonization pathways, and sector targets
  • Client transition engagement versus divestment from high-emitting sectors
  • Practical application: Calculate financed emissions for a sample portfolio and set one indicative sector target
Day 5

Green & Sustainability-Linked Lending and the Bank Roadmap

  • Green Loan Principles: use of proceeds, project selection, proceeds management, and reporting
  • Sustainability-Linked Loan Principles: KPIs, performance targets, margin ratchets, and verification
  • Green products for corporate, SME, and retail clients, and greenwashing controls
  • UNEP FI Principles for Responsible Banking: impact analysis, targets, and governance
  • Final workshop: Develop a bank climate risk and green lending roadmap covering credit policy, stress testing, emissions targets, green products, and governance

Upcoming Dates

Selected date

Madinah · 2 – 6 Nov 2026 · Classroom

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CityDatesPrice per ParticipantEarly Bird
MadridScheduled
2 – 6 Nov 2026€5,400—
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MadinahScheduled
2 – 6 Nov 2026€4,200—
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MakkahScheduled
9 – 13 Nov 2026€4,200—
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MarbellaScheduled
16 – 20 Nov 2026€5,400—
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ManamaScheduled
16 – 20 Nov 2026€4,700—
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MuscatScheduled
23 – 27 Nov 2026€5,300€4,770until 2 Nov
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OnlineScheduled
29 Nov – 3 Dec 2026€1,700€1,530until 9 Nov
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ParisScheduled
7 – 11 Dec 2026€5,700€5,130until 16 Nov
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SalalahScheduled
7 – 11 Dec 2026€5,300€4,770until 16 Nov
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AbujaScheduled
14 – 18 Dec 2026€5,100€4,590until 23 Nov
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AccraScheduled
21 – 25 Dec 2026€5,100€4,590until 30 Nov
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AmmanScheduled
27 – 31 Dec 2026€3,100€2,790until 7 Dec
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AmsterdamScheduled
28 Dec 2026 – 1 Jan 2027€5,400€4,860until 7 Dec
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BarcelonaScheduled
4 – 8 Jan 2027€5,400€4,860until 14 Dec
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BangkokScheduled
4 – 8 Jan 2027€6,100€5,490until 14 Dec
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BeirutScheduled
10 – 14 Jan 2027€4,000€3,600until 21 Dec
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BerlinScheduled
18 – 22 Jan 2027€5,800€5,220until 28 Dec
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CairoScheduled
24 – 28 Jan 2027€3,300€2,970until 4 Jan
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Cape TownScheduled
25 – 29 Jan 2027€5,100€4,590until 4 Jan
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CasablancaScheduled
1 – 5 Feb 2027€4,300€3,870until 11 Jan
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DammamScheduled
7 – 11 Feb 2027€4,200€3,780until 18 Jan
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DohaScheduled
7 – 11 Feb 2027€4,400€3,960until 18 Jan
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DubaiScheduled
14 – 18 Feb 2027€4,400€3,960until 25 Jan
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ErbilScheduled
21 – 25 Feb 2027€3,100€2,790until 1 Feb
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IstanbulScheduled
22 – 26 Feb 2027€4,700€4,230until 1 Feb
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JeddahScheduled
28 Feb – 4 Mar 2027€4,200€3,780until 8 Feb
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Kuala LumpurScheduled
8 – 12 Mar 2027€4,400€3,960until 15 Feb
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KigaliScheduled
8 – 12 Mar 2027€5,100€4,590until 15 Feb
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LisbonScheduled
15 – 19 Mar 2027€5,400€4,860until 22 Feb
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LondonScheduled
22 – 26 Mar 2027€5,600€5,040until 1 Mar
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Available in: Istanbul · Dubai · London · Doha · Amsterdam

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