Ethiopia's climate and social exposure

Module 02 / 5 · 55 min

Understand the climate and social risks Ethiopia faces and trace how drought, floods, power cuts and displacement reach a bank's loan book.

In this module you will learn to

Describe Ethiopia's main physical climate hazards and the sectors most exposed
Distinguish physical risk from transition risk with Ethiopian examples
Trace how a climate shock moves from a borrower to the bank's provisions and capital
Build a simple hazard and sensitivity score for parts of a loan portfolio

Built on

Erudite Africa course specification: 4.d Sustainable Finance and ESG, Level 1 Beginner (October 2026)
Erudite Africa: Ethiopian Context program overview and regulatory register (October 2026)
NBE directives as listed in the lessons: SBB/90/2024 and SBB/91/2024; Environmental Impact Assessment Proclamation No. 299/2002
A commercial bank's Revised Credit Procedure Manual (2025), unnamed
World Bank Group: Ethiopia Country Climate and Development Report (2024) and Making Ethiopia's Financial Sector Work for Women (2024)
International frameworks: UNEP FI Principles for Responsible Banking, IFC Performance Standards and exclusion list, ICMA Green Bond Principles, Basel Committee climate risk principles

Examples and organizations are fictional. Apply your own organization's approved policies.