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Climate and Investing

Recognising the growing importance of understanding climate change considerations into investment decision making
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Over recent years, there has been a significant change in attitudes and priorities among investors, governments and regulators, companies and other stakeholders around the topic of climate change. Both concerns over climate change and expectations for asset managers to respond to it have increased as companies develop and implement transitions targeting carbon neutrality by the middle of the century. Therefore, there is a growing consensus that investors and investment professionals need to be educated on the risks, opportunities and investment impacts associated with climate change.

However, understanding this complex area with multiple stakeholders, initiatives, metrics and tools presents challenges for both investors and investment professionals.

Building on the launch of the Certificate in ESG Investing, CFA UK recognises the growing importance of equipping today’s investment professional with the knowledge and skills necessary to understand climate as it relates to investing and how to integrate climate considerations into the investment decision making process.  

Working with practitioners from leading firms in this area, we are looking to develop a new qualification that addresses this educational need.

Who is the qualification for?

We are designing a qualification for practitioners working in investment roles who need to understand and / or undertake climate analysis in their day-to-day roles, including those working in the following areas:

  • Portfolio / Fund management
  • Research / investment analysis
  • Sales & distribution
  • Product development
  • Financial advice
  • Consulting
  • Risk 
  • Compliance
  • Accountancy
  • Pensions


What will I learn?

Candidates will learn about the investment risks, impacts and opportunities presented by climate change, the regulatory and policy environment as well as learn how to apply key tools and techniques to integrate climate considerations across a range of asset classes. Topics will include:

  • Introduction to climate and Investing
  • Climate science, climate change risks and considerations
  • Regulation, policy response and the corporate reporting landscape
  • Climate change impacts and opportunities
  • Climate risk measurement: data, metrics, targets and scenario analysis
  • Climate stewardship and engagement
  • Investment instruments – Listed and Private
  • Portfolio management
  • Serving client needs


Why should I take it?

Taking the qualification will be an excellent way for individuals to ensure that they possess the skills and competencies necessary to incorporate climate considerations into the decision-making process. It will also serve as a clear signal to clients about how fundamental these considerations are to a firm when making its investment decisions. Most importantly, however, taking the new qualification should equip investment professionals to ensure the risks and opportunities in this area are appropriately captured across the investment decision making process.


How is the Certificate in Climate and Investing different to the Certificate in ESG Investing?

Whilst the Certificate in ESG Investing offers a broad foundational framework to incorporate ESG factors into the investment decision-making process, the Certificate in Climate and Investing has a dedicated focus on climate-specific considerations, recognising the socio-economic implications of climate change, the systemic risk that climate change presents to the stability of the financial system and the role capital markets are expected play in allocating capital towards the transition to a low carbon economy. As such, the syllabus includes coverage of policy, regulation and tools specific to measuring climate related impacts on investments across a broad range of asset classes.


What do I do next?

If you are interested in finding out more about the new Climate and Investing qualification, please register your interest.