Certificate Course in ESG and Climate Risk Management

Duration 10 days 20 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Risk Managers, Credit Risk Professionals and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 9 Nov 2026 Course code SD-RM-055

Before you join: Participants should have working experience in risk management, finance, credit, investment, sustainability, compliance, audit or operational management.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Climate and ESG factors can affect credit quality, asset values, insurance losses, operational continuity, regulatory exposure and access to capital. Risk teams must translate climate science, emissions data, policy change and stakeholder expectations into financial risk decisions that boards, regulators, lenders and investors can examine. The challenge is not producing a sustainability report; it is identifying material exposures, testing them under plausible scenarios and integrating the results into risk appetite, capital planning, lending, investment and controls.

This certificate course develops the methods needed to assess and manage climate and ESG risk within enterprise risk management and financial decision-making. Participants work with the TCFD structure, IFRS S1 and IFRS S2 requirements, GHG Protocol emissions data, PCAF financed-emissions methods, double materiality, climate scenario analysis, stress testing and transition-plan assessment. The programme covers physical risk, transition risk, nature-related risk, social and governance factors, model risk, data quality, disclosure controls and board reporting. Participants learn to build risk taxonomies, heat maps, KRIs, scenario assumptions, control registers and management reporting.

Teaching combines short technical briefings with cases drawn from banking, insurance, infrastructure, manufacturing, energy and investment management. Group work centres on interpreting risk evidence, challenging assumptions, prioritising treatment actions and presenting decisions to senior stakeholders. Participants progressively build components of a climate and ESG risk management pack, then complete a capstone review and presentation. They leave with reusable templates and a structured plan for applying the methods to their own portfolio, business unit or risk function.

The course is suited to professionals who already work with financial, operational, credit, investment, compliance or sustainability information and need to connect ESG evidence to formal risk governance.

What you will be able to do

  • Assess climate and ESG exposures using a financial materiality and double materiality framework
  • Construct a climate and ESG risk taxonomy linked to enterprise risk categories
  • Develop climate scenarios and translate assumptions into financial risk drivers
  • Perform physical and transition risk assessments for assets, counterparties and portfolios
  • Calculate and interpret financed emissions using the PCAF methodology
  • Design climate and ESG KRIs, risk appetite measures and escalation thresholds
  • Evaluate disclosure and control requirements under IFRS S1, IFRS S2 and TCFD
  • Present a board-ready climate and ESG risk management pack with treatment actions

Benefits of attending

For you

  • Build confidence explaining climate risk effects on revenue, assets, capital and liquidity
  • Apply recognised disclosure and emissions methods in risk and finance discussions
  • Create board-level risk reporting supported by traceable assumptions and evidence
  • Assess borrowers, investments and operations using consistent climate risk criteria
  • Develop a practical climate and ESG risk management portfolio for career progression

For your organisation

  • Improves consistency between ESG reporting, risk registers and financial planning
  • Strengthens board oversight through defined indicators, thresholds and escalation routes
  • Supports better credit, investment and supplier decisions under climate uncertainty
  • Identifies data gaps and control weaknesses before regulatory or assurance review
  • Produces actionable transition and physical-risk treatment priorities for management

Course modules

20 modules over 10 days

Participants can explain how climate and ESG drivers transmit into financial and enterprise risks.

  • Climate hazards, transmission channels and balance-sheet effects in financial risk
  • Physical, transition and liability risks distinguished through causal pathways
  • Time-horizon mapping from acute shocks to long-duration structural change
  • Risk appetite statements linked to climate-sensitive earnings, capital and liquidity
  • Three-lines model responsibilities for boards, management and independent assurance
  • Regulatory expectations from prudential supervisors and securities regulators compared

Participants can build an ESG risk taxonomy and determine material issues using documented criteria.

  • ESG risk taxonomy aligned with strategic, financial, operational and compliance risks
  • Double materiality separates enterprise value effects from outward impacts
  • Financial materiality thresholds using revenue, asset, capital and cash-flow measures
  • Stakeholder evidence captured through interviews, grievance records and investor questions
  • Materiality matrices calibrated by severity, likelihood, velocity and persistence
  • Documented materiality decisions supported by sources, owners and review dates

Participants can interpret climate data and select evidence suitable for risk assessment.

  • Climate variables translated into heat, flood, drought, wildfire and storm hazards
  • IPCC scenario families interpreted without treating projections as forecasts
  • Hazard, exposure and vulnerability combined within physical risk assessment
  • Return periods and exceedance probabilities used for extreme-event interpretation
  • Downscaled climate data assessed for resolution, uncertainty and decision relevance
  • Climate data limitations recorded within model assumptions and governance papers

Participants can assess physical climate risk for facilities, collateral, supply chains and portfolios.

  • Asset geocoding connects facilities, collateral and suppliers with hazard data
  • Acute hazards assessed through event severity, downtime and recovery costs
  • Chronic hazards evaluated through productivity, water availability and asset deterioration
  • Exposure scores combine location, asset value, criticality and insurance coverage
  • Vulnerability analysis tests building standards, contingency capacity and adaptation measures
  • Physical risk registers assign owners, treatments, residual ratings and review triggers

Participants can identify and assess transition risks arising from policy, markets, technology and behaviour.

  • Carbon pricing translated into operating costs, margins and borrower repayment capacity
  • Policy pathways assessed through regulation, subsidies, standards and enforcement dates
  • Technology substitution tested against capital expenditure, obsolescence and demand shifts
  • Market transition risks include customer preferences, contracts and product substitution
  • Reputation and litigation risks evaluated using claims, conduct and disclosure evidence
  • Transition risk heat maps distinguish sector exposure from management readiness

Participants can evaluate emissions data quality and apply financed-emissions measurement principles.

  • GHG Protocol scopes classified by operational control and value-chain boundaries
  • Scope 1, 2 and 3 data assessed for completeness and estimation quality
  • Activity data, emission factors and global warming potentials documented
  • PCAF attribution factors applied to listed equity, loans and project finance
  • Data quality scores identify estimation uncertainty within financed-emissions calculations
  • Emission baselines reconciled with acquisitions, disposals and methodology changes

Participants can construct climate scenarios that link external assumptions to business risk drivers.

  • Scenario narratives connect policy, technology, energy prices and macroeconomic conditions
  • Orderly, disorderly and delayed transition pathways compared through risk drivers
  • Physical hazard scenarios specify location, timing, intensity and adaptation assumptions
  • Transmission channels map scenario shocks into revenues, costs, values and defaults
  • Sensitivity analysis tests critical assumptions, parameter ranges and management responses
  • Scenario documentation separates plausible assumptions from forecast statements

Participants can design climate stress tests and interpret their implications for financial resilience.

  • Stress-test objectives defined for capital, liquidity, credit losses and valuation
  • Severe but plausible shocks calibrated from scenario narratives and portfolio data
  • Credit migration matrices adjusted for sector, geography and borrower vulnerability
  • Cash-flow stress tests model revenue disruption, carbon costs and repair expenditure
  • Reverse stress testing identifies conditions that breach solvency or risk appetite
  • Results reported with uncertainty ranges, limitations and management actions

Participants can integrate climate and ESG evidence into credit assessment and monitoring.

  • Borrower climate profiles combine sector exposure, locations, emissions and transition plans
  • Credit due diligence tests governance, capex plans and insurance arrangements
  • Collateral vulnerability assessed through hazards, valuation sensitivity and insurability
  • Climate-adjusted cash flows inform debt service capacity and covenant design
  • Loan covenants specify reporting, emissions targets and remediation obligations
  • Early-warning indicators trigger portfolio reviews, escalation and watchlist actions

Participants can assess climate and ESG risk within investment, liquidity and treasury decisions.

  • Portfolio exposure mapped by issuer, sector, geography and asset class
  • Climate value-at-risk assumptions challenged for data sources and model boundaries
  • Transition-plan credibility assessed through targets, capex, governance and milestones
  • Sovereign risk analysis considers fiscal exposure, adaptation capacity and energy dependence
  • Liquidity risk assessed for collateral haircuts, market repricing and concentration
  • Engagement priorities ranked by financed emissions, risk exposure and influence

Participants can evaluate climate risk effects on insurance portfolios and operational continuity.

  • Underwriting exposure segmented by peril, geography, policy terms and concentration
  • Catastrophe-model outputs interpreted alongside model uncertainty and event clustering
  • Claims inflation reflects repair costs, supply shortages and post-event demand
  • Business continuity plans address site closure, workforce safety and supplier disruption
  • Operational resilience tolerances linked to climate hazard and recovery scenarios
  • Insurance availability and affordability assessed as emerging financial risk indicators

Participants can identify nature-related dependencies and assess associated financial risk.

  • TNFD concepts distinguish nature dependencies, impacts, risks and opportunities
  • Location-specific ecosystem services assessed for water, soil and flood regulation
  • Deforestation exposure traced through commodities, suppliers and sourcing geographies
  • Environmental permits, remediation liabilities and contamination risks quantified
  • Nature-related risk registers link dependencies to revenue, costs and asset values
  • Biodiversity data gaps documented through source quality, coverage and uncertainty

Participants can assess social and governance factors that create financial and conduct risks.

  • Human rights due diligence maps workforce, contractor and supply-chain exposures
  • Labour practices assessed through turnover, grievances, wages and safety performance
  • Community consent risks evaluated for projects, land access and social licence
  • Board competence tested against climate oversight, incentives and challenge records
  • Executive remuneration assessed for credible ESG targets and anti-manipulation controls
  • Greenwashing risk identified through claims substantiation, approvals and evidence trails

Participants can embed climate and ESG risks within enterprise risk management processes.

  • ISO 31000 principles applied to climate and ESG risk governance
  • Risk registers connect causes, events, consequences, controls and treatments
  • Inherent and residual ratings calibrated using defined scoring criteria
  • Bow-tie analysis identifies preventive controls, recovery controls and escalation points
  • Risk appetite metrics cascade from board limits to operational thresholds
  • Control self-assessments test design effectiveness, operating evidence and ownership

Participants can establish governance for ESG data, climate models and automated reporting.

  • Data lineage traces ESG metrics from source systems to external disclosures
  • Data dictionaries define metric boundaries, units, owners and calculation rules
  • Model inventories record purpose, inputs, assumptions, limitations and approvals
  • Validation tests assess conceptual soundness, data quality and outcome reasonableness
  • Version control preserves scenario assumptions, emission factors and calculation changes
  • Access controls protect sensitive borrower data and prevent unauthorised amendments

Participants can map risk evidence to climate disclosure requirements and assurance controls.

  • IFRS S1 requirements mapped to governance, strategy, risk and metrics
  • IFRS S2 disclosures link climate risks with financial effects and resilience
  • TCFD recommendations compared with IFRS S2 reporting architecture
  • Disclosure control matrices assign preparers, reviewers, evidence and sign-offs
  • Materiality judgments supported by quantitative thresholds and qualitative rationale
  • Assurance-ready evidence files retain calculations, sources, approvals and revisions

Participants can assess and prepare transition plans with measurable financial and risk actions.

  • Transition-plan baselines establish emissions, assets, revenues and target-year starting points
  • Decarbonisation pathways identify abatement measures, dependencies and residual emissions
  • Capital allocation aligns investment choices with targets, risk limits and milestones
  • Internal carbon prices tested for governance, scope and decision use
  • Transition-plan milestones connect accountable executives, budgets and performance indicators
  • Just transition considerations address workforce, communities and customer affordability

Participants can define treatment actions and report climate and ESG risk to senior decision-makers.

  • Risk treatment options compare avoidance, reduction, transfer, acceptance and adaptation
  • Climate KRIs specify formulas, thresholds, frequency, owners and escalation actions
  • Key control indicators monitor data quality, policy compliance and review completion
  • Management dashboards separate exposure, vulnerability, control performance and outcomes
  • Board papers present decisions, trade-offs, uncertainties and required approvals
  • Issue logs track remediation actions, due dates, evidence and overdue escalation

Participants can prioritise climate and ESG risk actions using sector-specific financial evidence.

  • Energy transition exposure assessed through reserves, demand outlook and retirement costs
  • Real-estate portfolios screened for flood, heat, efficiency and insurability risks
  • Agriculture risk profiles combine water stress, soil health and commodity volatility
  • Manufacturing assessments examine process emissions, supplier concentration and product redesign
  • Infrastructure reviews test asset lifespan, service obligations and adaptation expenditure
  • Portfolio prioritisation ranks exposures by financial materiality, urgency and controllability

Participants can build, review and present a complete climate and ESG risk management pack for a defined organisation, portfolio or business unit.

  • Scope statement defines decision context, boundaries, stakeholders and assessment period
  • Materiality assessment selects priority climate and ESG risk exposures
  • Scenario analysis translates assumptions into quantified financial risk drivers
  • Risk register documents ratings, controls, owners, treatments and residual exposure
  • KRI dashboard sets thresholds, reporting frequency and escalation responsibilities
  • Board paper presents findings, limitations, decisions and implementation priorities

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Climate and ESG risk taxonomy template
  2. Double materiality assessment matrix
  3. Climate scenario and stress-testing model
  4. Financed emissions calculation worksheet
  5. Climate risk KRI dashboard template
  6. Board-ready climate and ESG risk management pack

Who should attend

  • Risk Managers — need to integrate climate and ESG drivers into enterprise risk processes
  • Credit Risk Professionals — need consistent climate assessment of borrowers and collateral
  • Investment and Treasury Managers — need to assess portfolio exposure, valuation and transition risk
  • Sustainability and ESG Managers — need to connect sustainability data with financial risk decisions
  • Finance and FP&A Managers — need to reflect climate assumptions in forecasts and capital plans
  • Internal Audit and Compliance Professionals — need to test governance, controls and disclosure evidence

Skills and tools covered

Climate scenario analysisESG risk assessmentFinanced emissions measurementRisk appetite designClimate stress testingBoard risk reporting

Tools and standards

IFRS S1 and IFRS S2, Task Force on Climate-related Financial Disclosures, GHG Protocol, Partnership for Carbon Accounting Financials

How the course runs

Training methodology

The programme uses short instructor briefings to establish methods and standards, followed by sector cases, facilitated group analysis, risk simulations and structured application planning. Participants examine emissions records, borrower information, asset-location data, scenario assumptions and disclosure extracts. Teams test materiality judgments, challenge scenario inputs, build risk responses and present findings in management-report formats. Instructor feedback focuses on financial relevance, evidence quality, governance and decision usefulness. Each participant develops material they can adapt for their own risk function, portfolio or business unit.

Requirements and prerequisites

Participants should have working experience in risk management, finance, credit, investment, sustainability, compliance, audit or operational management. They should be comfortable reading financial statements, interpreting management reports and discussing risk concepts such as likelihood, impact, controls and risk appetite. Familiarity with ESG reporting or climate science is helpful but not required. The course does not require prior use of climate models, coding, advanced statistics or specialist carbon-accounting software. It is not an introductory accounting course; participants should understand core business finance terminology.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants should understand basic finance and risk terminology and have experience working with management, credit, investment, sustainability, audit or compliance information. Prior climate modelling, carbon accounting or programming experience is not required.

Bring a laptop if attending in person, plus any non-confidential risk register, ESG report, climate target, credit policy or board-report format you wish to consider. Course materials and case data are provided.

It is designed for risk, finance, credit, investment, treasury, sustainability, compliance and internal audit professionals. It is particularly useful for people responsible for connecting ESG information with financial decisions and governance.

The course treats disclosures and emissions data as inputs to risk assessment, financial analysis, controls and decision-making. It gives substantial attention to scenarios, stress testing, credit, investment, risk appetite and board oversight.

Participants develop reusable risk, materiality, scenario, KRI and reporting materials during the programme. These can be adapted to a portfolio, business unit, lending process, investment process or enterprise risk framework.

Each day runs from 08:30 to 16:30 and provides about 6.5 contact hours. Early modules establish climate, ESG, data and assessment methods; later modules focus on financial applications, governance, disclosures and the capstone management pack.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

Related courses in Risk Management