UCD Michael Smurfit Graduate Business School has unveiled a novel succinct course in Sustainable Finance, designed to equip financial professional with the critical skills they need to seize the growth potential emerging from the rapidly evolving financial landscape. This condensed, yet intensive, three-day course will be held from 9 to 11 April, addressing key areas like ESG governance and reporting, sustainable finance and investing, and climatic risk control.
This course is particularly timely considering Ireland’s aspiration to become a sustainable finance hub and the compelling urgency to confront the climate crisis. Julie Byrne, associate finance professor at the institution, highlights the growing acknowledgment among banks and financial entities of sustainable finance’s value.
Byrne cites the frequent natural calamities like storms and floods globally supporting the idea that we have reached a turning point. Global commitments to achieve net zero and regulatory authorities’ emphasis globally, including Ireland, on incorporating ESG factors in financial regulation, creates a need for financial institutions to adhere to the unfolding sustainable finance regulations to stay competitive and avoid penalties.
She also warns of the risk management implications, highlighting climate change and social inequality as significant potential financial threats to banks and financial institutions. Establishing sustainability-centered risk management strategies can help such organisations better foresee and minimise potential risks, securing enduring financial stability.
Byrne also points out the available opportunities. She emphasised the crucial role that financial institutions can play in the transition to net zero for climate change mitigation. She estimates the necessary funding to range from $125- $175 trillion (€115-€161 trillion) from now until 2050. This poses a significant opportunity for financial organisations in Ireland to become pioneers in this endeavour.
The surging demand in the marketplace is another motivating factor. With the growing awareness of environmental and social issues, consumers, businesses, and investors are seeking financial institutions that reflect their values and offer sustainable investment alternatives. This scenario opens up possibilities for new revenue avenues and innovation. Financial entities can produce creative products and services catering to the increasing interest in sustainability-oriented investments.
There’s an increasing tendency amongst investors to factor Environmental, Social and Governance (ESG) aspects into their investment decisions, which promises better access to capital. “Banks and financial institutions can enhance their reputation and brand image by adopting sustainable finance practices,” points out Byrne. He believes that by prioritising environmental and social responsibility, institutions can draw attention from socially-conscious customers and investors, ultimately consolidating their market standing.
The newly launched programme is designed for busy professionals in banking, insurance, asset management, wealth management, investment banking, financial regulation, NGOs, and Government. It aims to enable them to both seize these opportunities and tackle the challenges posed by sustainable finance. “The participants will get an insight into sustainable finance advances and the instruments required to assess return on investment in this field,” states Byrne. “They will also learn to interpret ESG data. This is not as straightforward as in conventional finance where the emphasis is on profit optimisation. Sustainable finance is distinctive in its consideration for society alongside profit. It is in sync with the UN Sustainable Development Goals and attempts to involve multiple stakeholders.”
On a functional level, the regulatory and reporting necessities related to climate-risk are compelling firms to tie their fundraising activities to sustainability criteria. “The programme caters to managers seeking to grasp the intricacies of sustainable financing. It will acquaint them with the reporting requisites foundational to sustainability, its association with financing structures, trends in sustainable investing, and how businesses and regulators evaluate climate-related financial risk.”
Financial services enterprises will inevitably have to align with this new agenda. “Sustainable finance is now a critical element in all organisational activities,” Byrne affirms. “Although it might not be as profit-centred as traditional finance, leaders in sustainable finance tend to achieve higher profitability. It enhances their appeal to customers and competitiveness. Rather than reducing profits, sustainable finance can harm the bottom line if organisations fail to adapt. Being a pioneer can bolster the bottom line instead of undermining it.”
Those interested in the Sustainable Finance short course can now apply. For further details, reach out to [email protected].