CFA Institute has launched the Investment, Valuation and Climate Risk Certificate program to provide investment professionals with the skills needed to understand and analyze the impact of climate risk on portfolio investments. The certification is launched in line with growing global demand for climate analysis expertise, as environmental considerations become central to investment strategies.
The initiative comes as growth in sustainable funds accelerates, with corporates and fund managers increasingly incorporating environmental considerations into their strategies. At the same time, regulators are developing rules for fund labeling and issuer disclosures related to climate risk.
The International Sustainability Standards Board (ISSB) recently implemented standards for reporting climate-related risks and opportunities, attracting support from regulators around the world. Canadian securities regulators are also considering adopting these ISSB standards.
Overseen by Richard Fernand, this certification program offers a rigorous learning methodology requiring 100 hours of study in five courses. These include climate science, risk and regulation; transition finance; the environment and valuation of listed equity and debt; alternatives; portfolio management and climate risk management. Each course ends with a quiz to reinforce learning, and upon completion, participants will receive a certification badge.
Course design promotes shared learning through a cohort approach and provides flexibility in the pace of learning. The program is expected to help analysts and portfolio managers incorporate climate considerations into company valuations and portfolio construction, highlighting the growing influence of key factors that also apply to investment decisions.
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