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KnowledgeCity

ESG Risk in Finance

Learn how to identify, evaluate, and respond to ESG risks that shape financial stability and credibility.
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Course: On-Demand
Provider :  KnowledgeCity  5 Lessons ·  16m  in English 

Course Description

In this ESG Risk in Finance course, you’ll learn how financial institutions manage environmental, social, and governance risks that affect portfolios, disclosure practices, and long-term growth. You’ll also explore materiality principles, global frameworks such as TCFD and SASB, and the rules and data needed to build credible ESG reporting.

Financial institutions are under pressure from regulators, investors, and stakeholders to address ESG risks with the same rigor as traditional financial risks. Environmental risks include both physical threats and transition risks from new regulations or market shifts. Social risks range from labor practices to diversity and inclusion, while governance risks involve board oversight, compliance, and ethical conduct. Together, these risks can compound one another, raising the stakes for stability and credibility across financial systems.

This course also introduces materiality concepts, showing how financial and double materiality influence reporting priorities. You’ll examine the TCFD and SASB frameworks, learn how global standards like ISSB, SEC, and CSRD drive reporting requirements, and study how institutions source and verify ESG data. By the end of the course, you’ll be able to identify ESG risk categories, apply frameworks, and strengthen reporting practices to align with regulatory expectations and investor needs.

Learning Objectives:

• Define ESG risk categories for financial institutions

• Explain materiality principles and key frameworks (TCFD, SASB)

• Identify global regulatory drivers for ESG disclosure

• Outline key ESG data sources for risk measurement

• Understand the strategic implications of ESG risk integration

What You'll Learn

  • Define the environmental, social, and governance risk categories that financial institutions face
  • Explain financial and double materiality principles and key frameworks such as TCFD and SASB
  • Identify global regulatory drivers of ESG disclosure, including ISSB, SEC, and CSRD requirements
  • Outline key ESG data sources used for risk measurement and learn how institutions source and verify ESG data
  • Understand the strategic implications of integrating ESG risk into financial risk management
  • Strengthen ESG reporting practices to align with regulatory expectations and investor needs

Key Takeaways

  • Financial institutions are under pressure from regulators, investors, and stakeholders to address ESG risks with the same rigor as traditional financial risks.
  • Environmental risks include both physical threats and transition risks arising from new regulations or market shifts.
  • Social risks range from labor practices to diversity and inclusion, while governance risks involve board oversight, compliance, and ethical conduct.
  • ESG risks can compound one another, raising the stakes for stability and credibility across financial systems.
  • Financial and double materiality concepts influence which issues take priority in ESG reporting.

Frequently Asked Questions

Who is this course for?

It is designed around how financial institutions manage environmental, social, and governance risks, making it relevant to professionals involved in risk management, regulatory compliance, and sustainability reporting at financial institutions.

What topics does the course cover?

It covers ESG risk categories (environmental, social, and governance), materiality principles including financial and double materiality, the TCFD and SASB frameworks, global regulatory drivers such as ISSB, SEC, and CSRD, and how institutions source and verify ESG data.

What skills will I gain from this course?

The course builds skills in ESG research and analysis, regulatory compliance, and sustainability reporting. By the end, you will be able to identify ESG risk categories, apply frameworks, and strengthen reporting practices.

How is the course structured?

The course consists of five lessons: Introduction; ESG Risk Categories; Test Your Knowledge; Materiality and Frameworks; and Global Rules and Data.