Environmental and social (E&S) risks to financial institutions stem from E&S issues related to their client’s/investee’s operations, which put in jeopardy of legal, financial, and/or reputational risks Considering these risks in the transaction review process helps financial institutions in reducing overall risk exposure. A financial institution can manage its exposure to environmental and social (E&S) risks from its portfolio by developing an Environmental and Social Risk Management System (ESRMS). By implementing an ESRMS, a financial institution can enhance its understanding of E&S risks associated with each transaction, which can be included in the decision-making process for proceeding with a transaction. Furthermore, if clients/investees engage in activities that present a potential E&S risk, financial institutions can encourage their clients/investees to identify and mitigate these risks and capture opportunities from transitioning to sustainability. The course focuses on the “procedures” component of the ESRMS to evaluate and monitor environmental & social risks. Moreover, it includes case studies from global and local good market practices and multiple group exercises.