SECTION A 1. Explain the meaning of environmental, social and governance (ESG) issues in relation to lending and institutional investment decision making, giving examples, and consider why they have become increasingly important in recent years. 2. The nancial risks of climate change have become central to the E36 debate. Explain why climate change presents risks and why climate change risks may be different in nature from traditional risks. 3. The Principles for Responsible Banking were published in November 2018. Explain what these Principles are trying to achieve and what changes might be seen in the banking industry if a large number of banks sign up to the Principles. What steps, such as changes to the incentive system, might a bank take to encourage conformance with the principles right across all areas of operation