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The CFA Institute has introduced a Climate Risk, Valuation, and Investing Certificate program, aimed at equipping investment professionals with the necessary skills to understand and analyze climate risks’ impact on investment portfolios. The launch of this certification aligns with the increasing global demand for climate analysis expertise, as environmental considerations become central to investment strategies.
This initiative comes at a time when the growth of sustainable funds has surged, and corporations and fund managers are increasingly integrating environmental aspects into their strategies. Concurrently, regulatory bodies are developing rules around fund labelling and issuer disclosures related to climate risks.
The International Sustainability Standards Board (ISSB) has recently implemented standards for reporting climate-related risks and opportunities, which have garnered worldwide regulatory support. The Canadian Securities Administrators are also considering adopting these ISSB standards.
The certification program, overseen by Richard Fernand, offers a rigorous learning methodology that requires 100 hours of study across five courses. These include Climate Science, Risks, and Regulations; Transition Finance; Climate and Valuation for Listed Equity and Debt; Alternatives; and Portfolio Management and Stewardship for Climate Risk. Each course concludes with a test to reinforce learning, and upon completion, participants are awarded a certificate badge.
The curriculum design promotes shared learning through a cohort approach and provides flexibility in study pace. This program is expected to help analysts and portfolio managers incorporate climate considerations into company valuations and portfolio construction, underlining the growing influence of these factors on investment decisions.
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