Intro to Sustainability and Climate Risk Management, Markets and Instruments (VIRTUAL CLASS) - SCRM 

CPE Credits Awarded: 12
Categories: Other Energy Resources, Trading, Derivatives, Hedging and Risk Management, Global Association of Risk Professionals (GARP) Approved Course , Virtual Classroom Courses

Course Date Duration Venue Price Registration Deadline Register


12-15 October 2021  New York City Timing  London Timing  Singapore Timing
Session 1: 12 October 2021 
 10:00am - 1:00pm EDT
 15:00 - 18:00 BST  10:00pm - 1:00am SGT
Session 2: 13 October 2021
 10:00am - 1:00pm EDT  15:00 - 18:00 BST  10:00pm - 1:00am SGT
Session 3: 14 October 2021  10:00am - 1:00pm EDT  15:00 - 18:00 BST  10:00pm - 1:00am SGT
Session 4: 15 October 2021  10:00am - 1:00pm EDT  15:00 - 18:00 BST  10:00pm - 1:00am SGT


The course is designed to help professionals understand and manage the potential economic and operational impacts of sustainability and climate risks (SCRs) in their organizations.  It is also designed to help candidates of the GARP Sustainability and Climate Risk (SCR™) Certificate prepare for the exam.

We will review the way climate risk impacts various economic agents from energy firms, investors and banks to insurance and reinsurance companies, manufacturers and distributors in supply chains.  This workshop provides an overview of the “green” finance and trading markets created as a global response to climate change and will cover a wide range of financial products and instruments for financing sustainability and climate projects. We will review different initiative to price carbon, from a market and regulatory perspective.

We will discuss the main recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and see how different energy firms have adopted the framework to report climate risk exposures and guide portfolio management decisions.

The course also explores how to integrate SCR exposures in the Enterprise Risk Management Process, with focus on risk identification, measurement and management. We will also discuss effective design and applications of scenario analysis of climate change risks in the context of energy portfolios.

Case Studies for Energy Firms to illustrate key concepts will be introduced throughout the course.

The course builds on the selected readings by GARP SCR Certificate.


Professionals who need to understand and manage the potential economic and operational impacts of sustainability and climate risks.  Candidates for the GARP Sustainability and Climate Risk (SCR™) Certificate.


Session I: 3 hours

Foundations of Climate Change

  • Introduction to Earth science systems: greenhouse effect, global warming, and climate change
  • Carbon emissions, sequestration, greenhouse gas (GHG) scenarios, and tipping points
  • Brief history and evolution of past and present climate accords
  • Integrated Assessment Models (IAMs)
  • Linkages between climate change risk and energy portfolios

Climate change Policy, Regulations and Ratings

  • Sustainable Development Goals (SDGs)
  • Environmental, Social, and Governance (ESG) reporting frameworks, scorings, and ratings
  • Institutional Investors and Climate Change: Principles for Responsible Investment
  • Case study: ESG investment guidelines in BlackRock vs. Goldman Sachs
  • Principles for Responsible Banking
  • Climate-related financial disclosures
  • Greenhouse gas (GHG) emissions accounting and reporting principles
  • Setting organizational and operational boundaries
  • Case study: SCR criteria used by leading credit rating agencies

Session II: 3 hours

Green and Sustainable Finance: Instruments and Markets

  • Climate finance trends, instruments and sources
  • Understanding “Green” loans and sustainability-linked loans
  • Guidelines for issuance and uses of green, social, and sustainability bonds.
  • Trends in bond issuance for green markets. Alternative bond structures
  • Case study: Starbucks Issue of first U.S. Corporate Sustainability Bond
  • Climate finance and the current state of global climate flows
  • Factors in implementing sustainability strategies
  • Fundamentals of Trading and Pricing Carbon
  • Carbon pricing: taxes, trading, credits, and leakage

Financial risk Management and reporting

  • Financial impact of climate change
  • Risks and opportunities as a result of climate change
  • Preventable surprises and climate change action
  • Physical risks – severity and/or frequency of extreme weather events
  • Transition risks – Policy, legal, technology, markets and reputational risks
  • Role of Competitors, Investors, Regulators, Customers and Supply Chains
  • Identifying exposure to climate change-related financial risks
  • Summary Recommendations of Task Force on Climate-related Financial Disclosures (TCFD)
  • Climate Maturity Assessment and TCFD Gap Analysis
  • Case study: Chevon TCFD disclosures
  • Lessons learned and top recommendations

Session III: 3 hours

Enterprise Risk Management and SCRs

  • Integration of SCR into the Enterprise Risk Management Process
  • Organization’s governance around climate-related issues and opportunities
  • Sustainability and climate risks and opportunities on the organization’s business, strategy and financial planning
  • Bringing climate risks in the risk identification process
  • Mapping climate risks into the organization’s performance
  • Building a mindset for Climate Resiliency
  • Active vs. Passive Management of SCR risks
  • Climate Risk and Strategy: Linking physical and transitional climate risks linked to strategies, frameworks, and operations
  • Case study: Analysis of disclosures by integrated energy firms

Scenario-based climate risk assessment and methodologies

  • Considerations for applying scenario analysis
  • Types of climate-related scenarios: Publicly available for industry and sectors (e.g. EIA) vs. company-specific scenarios
  • Analytical Choices in Scenario Analysis: Selected Scenarios, Assumptions and Supporting data and models
  • Designing effective climate-related scenarios for different time horizons
  • Using Scenario Analysis in Disclosure of Climate-related Risks and Opportunities
  • Case study: Climate risk management, scenarios and stress tests by AES
  • ERM heat maps and applications to SCRs
  • Case study: Scenario analysis for a transportation company

Sesssion IV: 3 hours

Current Issues in SCR for Energy Firms and Renewable Energy Finance

  • Renewable portfolio standards (RPS) and impact on energy supply portfolios.
  • Electricity market dynamics and increasing renewable penetration
  • Emissions markets and Renewable Energy Credits (RECs)
  • Renewables portfolios: Wind, solar, batteries
  • Renewable energy Power Purchase Agreements (PPAs) and Virtual PPAs
  • Case study: Microsoft’s Carbon Negative goal and comparison against Amazon’s initiatives
  • COVID‐19 implications for climate change response
  • Risks and opportunities in the transition to a low-carbon economy
  • Integrated resource planning (IRP) incorporating renewables and batteries
  • Case study: Glendale Water and Power finds a way forward to bring clean energy and meet local reliability


DR CARLOS BLANCO is a financial risk management expert with over 20 years of diverse experience in energy markets. He has worked with some of the largest energy and commodity market firms worldwide providing educational, advisory services and software solutions.

He is the managing director of analytic solutions for Ascend Analytics. He has advised risk groups and senior management in oil, gas, power, mining and trading firms on various matters related to the risk management process including risk policy, hedging strategy, risk model development and validation, risk appetite and risk metrics.

Dr. Blanco is an active faculty member for Mennta Energy Solutions since 2004, and he has conducted a wide range of energy derivatives hedging, pricing and risk management seminars worldwide. A frequent conference speaker and writer, he has coauthored over 150 articles for Energy Risk Magazine, Commodities Now, Energy Metro Desk, Oil and Gas Journal and others.

He is a former VP Risk Solutions at Financial Engineering Associates, Inc (a MSCI/BARRA Company), where he managed the market risk suite of products as well as the firm’s product support and professional services group. He also taught finance at the University of California, Berkeley, and the ABN AMRO Academy.

GARP rgbMennta Energy Solutions is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. Mennta Energy Solutions has determined that this program qualifies for 16 GARP CPE credit hours. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at

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