Objectives

• Understanding the institutional landscape affecting ESG regulation at the international and European level
• Obtaining insights into the different transmission channels of ESG risks and related taxonomy (ESG factors, physical, transition and litigation risks, biodiversity and non-financial risk factors)
• Overview of the challenges banks are facing amid the transition to a more sustainable economy
• Clarifying the nature and extent of ESG risks and the challenges related to their management, considering both the bank management as well as the supervisory perspective
• Obtaining insights into the micro-prudential framework for the supervision of ESG risks
• Understanding the macro-prudential approach considering risk buffers and climate stress tests
• Basic understanding of the associated data and quantification problems ("green swan")
• Gaining insights into relevant publications and activities of academia and supervisory authorities on sustainability risks
• Recognition of the importance of topics with growing importance to banking supervision (e.g. the taxonomy regulation)