AML Red Flags

This eLearning course is aimed at all staff within an organisation. It provides an introduction to ESG and highlights the impact of ESG initiatives and regulations on the organisation and staff members.

This module and the end assessment can be tailored to incorporate client-specific content.

1. Introduction
   • Definitions – ESG and sustainable finance
     
     
2. Why does ESG matter?
   • The moral imperative
     • Link to the UN Sustainable Development Goals (SDGs)
     • Sustainable investment as a means for the financial sector to support the achievement of the SDGs
   • The commercial imperative
     • Growing client demand for sustainable investment options
   • The legal/regulatory imperative
     • Multiple initiatives launched by international standard-setters and local regulators
   • Case studies and examples highlighting the major themes and issues relating to:
     • Environmental issues
     • Social issues
     • Governance issues
       
       
3. Unpacking ESG
   • History of ESG as a concept
   • Sustainable investing did not begin with ESG – the ‘spectrum of capital’
   • Components of ESG (environmental, social and governance)
     
     
4. ESG – risks and opportunities
   • Examples of risks
     • Financial
     • Reputational
     • Climate risks – physical and transitional
   • Examples of opportunities
     
     
5. Expectations on firms
   • Regulators are at varying stages in consulting on, and implementing, specific requirements on firms.
     • Overview of some of the key themes in regulatory initiatives (e.g. taxonomies, risk management, stewardship)
   • Disclosure as a major focus of regulatory policy
     • The risk of greenwashing
     • Challenges of disclosure (for example, emissions ‘scopes’)
       
       
6. Conclusion
   • ESG and sustainable finance are growing in importance for both regulators and firms
   • Highlight some of the key initiatives on the horizon
     
     
7. Assessment