CFA Institute introduces certificate for climate investing

As investors become more aware of the how climate risks will affect portfolios, the CFA Institute is introducing a series of courses to provide professionals with climate-related investment knowledge.

The institute is opening registration for a new Climate Risk, Valuation and Investing Certificate on Nov. 30. The certificate involves five courses covering climate science, regulations, transition finance, effects on valuation for public and private assets, and managing portfolios for climate risk.

“Investment firms seeking to adapt to the risks associated with climate change increasingly require staff with specific climate analysis skills, and this new certificate meets that market demand,” a release from the CFA Institute said.

The number of sustainable funds has exploded in recent years as fund companies offer investments that take environmental concerns into account and managers develop new strategies to scrutinize issuers based on the risks posed by climate change.

Regulators are also developing rules around fund labelling and issuer disclosures. Last summer, the International Sustainability Standards Board (ISSB) released standards that aim to establish commonly used disclosures for climate-related risks and opportunities.

Global regulators endorsed the ISSB standards, and the Canadian Securities Administrators said they’re planning consultations to adopt a version of them.

The CFA Institute said it wants to address a knowledge and skills gap when it comes to climate analysis in investments. The courses are intended to help analysts and portfolio managers integrate climate considerations into company valuations and portfolio construction.

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