FOUNDERS. Certified Training Program on Sustainable Finance

Transcription

1 FOUNDERS Certified Training Program on Sustainable Finance Acknowledging that any industry move starts with shaping the minds.. Mostadam is a platform that was founded in 2012 by Arab African International Bank (AAIB), United Nations Development Programme (UNDP) and Egyptian Corporate Responsibility Center (ECRC). Mostadam is to promote Sustainable Finance in Egypt. Sustainable Finance aims at instilling the connection between EESG (Economic, Environmental, and Social & Governance) aspects within the bank s core businesses, operations, policies and practices.

2 Sustainable Finance Mostadam Mostadam Vision: To empower the Egyptian banking sector to become a forerunner in Sustainable Finance on a global level. Mostadam Mission: Developing a National Model for Sustainable Finance in Egypt. Mostadam Goals: Contextualize Sustainable Finance through initializing a platform that includes: FINANCIAL INCLUSION CLEAN ENERGY FUNDING ENTREPREUNERSHIP GOVERNANCE Why Sustainability & Why Sustainable Finance? The term sustainability is broad and means many things to many people biodiversity, conservation, ecological considerations, environmental issues, energy efficiency, long-termism versus short-termism, recycling, renewable energy, etc. At its core, sustainability is a concept that embraces two key elements: the interconnectedness of culture, ecology, economics and politics (as opposed to the dominance of one sphere, usually economics or economic growth, over the other spheres); and the promotion of this interconnectedness over time. Sustainable Finance is finance that considers more than today s financial performance or bottom line. Whereas previously financial institutions had a narrow focus of operations and results (profitability), today a sustainable financial institution recognizes that extra-financial environmental, social and governance (ESG) issues impact both its operations and its financial

3 results, both today and tomorrow. Furthermore, a sustainable financial institution understands that its operations influence society as well as a diverse universe of specific stakeholders: consumers, customers, investors, media, non-governmental organizations (NGOs) and regulatory authorities. Sustainable Finance recognizes a complex structure of internalities within and externalities surrounding the financial institution. Ignoring these factors evidences an inefficient, outdated and simplistic business model. Conversely, the careful analysis and effective management of these internalities and externalities brings both internal and external benefits to the financial institution. This is the business case for Sustainable Finance. The collapse of the internet bubble, the attacks on 9/11/2011, the sub-prime mortgage crisis, the current financial crisis, the Arab Spring and the emergence of Brazil, Russia, India, China, South Africa (BRICS) as well as other emerging markets challenge the validity of the shareholdercentric approach for all financial institutions. Simultaneously, the adoption of corporate governance codes worldwide, climate-related disasters, the emergence of risk management, the standardization of ESG reporting (ISO and GRI, et al), growing consumer / investor interest in sustainability, increased regulatory scrutiny of ESG issues and a wealth of studies analyzing the relationship between sustainability and financial performance have prompted a re-assessment and re-evaluation of the business case for sustainable finance. In addition to all of the above factors, increased competition worldwide and growing awareness about the finite supply of natural resources have led financial institutions to find ways to reduce costs, increase efficiency and promote innovation. Sustainable Finance is a catalyst; it provides effective tools to achieve these dual goals of enhanced risk mitigation and holistic delivery of financial as well as extra-financial value. This is the business case for Sustainable Finance. Mostadam s Certified Training Program Is the first certified training program for Sustainable Finance in Egypt initiated as a joint effort between AAIB, UNDP and ECRC. It is certified by the Egyptian Banking Institute. The training involves 40 hours of in-person training and 40 hours of individual learning following the in-person training. In this program, participants will acquire the knowledge to explain the relevance and importance of Sustainable Finance, the positive correlation between finance and socioenvironmental and governance issues. Participants will also be able to describe how to raise money from the bottom of the pyramid and how to finance clean energy projects. Moreover, participants will be able to describe how SMEs and entrepreneurs can develop business models for this purpose as well as broadening of their risk scope to include social and environmental risk assessment and risk management. Finally, participants will acquire the knowledge to explain the concept of sustainability reporting.

4 Whether you hail from a retail, corporate or investment background, this program is about providing you with a comprehensive knowledge base that allows you to tap new business opportunities to generate and sustain your profits. The program is to equipping ambitious bankers to learn about future trends and lean to raise money from emerging opportunities within the social and environmental landscape. Course Description & Training Goals The course will begin with a presentation about sustainability and an introduction to sustainable finance. CSR in the banking sector will be examined through a broad range of perspectives. ESG reporting the three elements of extra-financial reporting will be explained and participants will work on exercises to strengthen their understanding of how these issues impact risk as well as financial performance. The history and development of SRI will be presented, with a focus on SRI methodologies and performance. Expert viewpoints on CSR, SRI and sustainability in the financial sector will be reviewed and discussed. Participants will work on exercises, case studies and templates, fostering interactive learning. During the second half of the course, inclusive banking will be examined, with a focus on assisting participants in developing pragmatic tools for designing and implementing a successful inclusive finance program. Concepts and definitions will be presented, followed by an understanding of how indicators and methodology are assessed and quantified. Then, the goals of inclusive banking will be analyzed. Finally, the course will describe the constituent elements of a strategy for successful implementation. Case studies, from a variety of jurisdictions, will demonstrate negative and positive examples of indicators, methodology, goals, strategy and implementation. The Equator Principles will be described as an example of environmental and risk assessment in project finance. At the end of the in-person training, each participant will take a multiple-choice test to verify her/his understanding of the main topics. Post course work will be assigned. Each participant should complete the assigned work and return it to the course organizer by the deadline. An annex of resources, including a detailed bibliography and a list of free online resources, will be provided in the course materials. Course duration: 80 Hour to be divided 40 hours in-person course and 40 hours individual work after the course Assessment Strategy: Participants will be assessed as follows: attendance at and active participation in the in-person component of the training course 20%; multiple choice question (MCQ) test administered on the last day of the in-person training course 60%; and completion of the assignment during the post-course work 20%. Each participant who successfully completes all three components of the assessment will receive a pass grade and will receive a certificate of completion of the training course. Coarse Language: English

5 Prerequisites: Proficiency in English, written and spoken; understanding of banking operations, corporate & retail. Ability to read, analyze and discuss case studies individually and in small groups. Ability to complete exercises and fill-in templates individually. Program Dates Sunday, November 16 th Thursday, November 20 th, 2014 Program duration: 5 Days in class (8 hrs/day) 5 days for undertaking two case studies (out-of class) Program Venue Marriott Hotel Zamalek (Ballroom Verdi) Course Fees: 9500LE This course is funded by AAIB&ECRC For Registration: please visit to fill in the registration form Or contact :Nehal Mahgoub, nmahgoub@ecrc.org.eg and/or Mostadam@aaib.com Topics: Environmental, Social and Governance (ESG) Indicators Assessing and Mapping ESG Risks Sustainability and Financial Performance Best Practice in Sustainable Finance Bottom of the Pyramid (BoP) Inclusive Finance (strategy, methodology, loan analysis, microfinance, micro-saving, & micro-insurance,...etc) Integrated Reporting The Equator Principles (concepts, definitions, documents, institutions, case study in risk management ) Corporate Social Responsibility (CSR) in the Banking Sector The final goals of the Mostadam Certified Training Program are: Upon completion, all participants should have developed an adequate understanding of: The relevance and importance of sustainable finance;

6 The positive correlation between finance and social, environmental and governance issues; The rising importance of the Bottom of the Pyramid (BoP); The new trends in funding clean energy projects; The ability to fund micro-small and medium enterprises and entrepreneurs and develop business models for this purpose; The broadening of the risk concept to include social and environmental risk assessment and risk management; and The concept of sustainability reporting. Who should apply? This training program about sustainable finance targets the following participant profiles: Financial sector: middle and senior level managers of corporate banking, investment banking, corporate marketing, risk management, compliance and sustainability departments as well as other departments that cover the above-mentioned issues. Whereas the emphasis is on banking, middle and senior level managers in capital market activities and/insurance may also be interested; Expert consultants engaged in clean energy, microfinance and sustainability reporting; and Financial sector regulators. Course Provider Geoffrey Mazullo, Principal, Emerging Markets ESG, possesses 22 years of professional experience as an analyst, writer and trainer covering corporate governance; corporate social responsibility (CSR); environmental, social and governance (ESG) reporting; investor relations; prevention of money laundering; socially responsible investment (SRI); and sustainability reporting in a number of developed and emerging markets. He has analyzed the governance practices of banks, financial institutions and listed companies in Canada, the Caucasus, Central and Eastern Europe (CEE), Egypt, European Union (EU) member states, Japan, Russia, South East Europe (SEE) and the United States. He has been directly engaged in corporate governance and SRI developments in Egypt as well as in emerging markets in the Caucasus, CEE, Russia and SEE. During the past decade, he has designed and conducted training programs on corporate governance, CSR, ESG reporting and SRI in Egypt, Latvia, Poland, Romania and Serbia. Since 2010, Mr. Mazullo has designed and conducted the following courses in Egypt: Training Course on Corporate Social Responsibility (CSR) and Inclusive Banking (June 2013); Training Program on Best Practice in Corporate Governance Reporting (November 2012); Training Program on the Equator Principles (May 2012); Seminar on Inclusive Banking (May 2012); Training Workshop - Strengthening Transparency and Boosting Competitiveness through Effective Environmental, Social and Governance (ESG) Reporting (March 2010). He

7 contributes regularly to on-line and print publications. In November 2010 he launched Five Questions about SRI, an expert interview series published on the Emerging Markets ESG internet portal. Mr. Mazullo is Chair of the Evaluation Committee of the Baltic Market Awards, an initiative of the NASDAQ OMX Baltic Exchanges to recognize best practice in investor relations, and Adjunct Professor at the School of American Law (SAL) in Wroclaw, Poland. He holds a Bachelor of Science in Foreign Service (BSFS) from Georgetown University and a Master of Science from the London School of Economics and Political Science (LSE). Certified by: