The CFA Institute has launched a certificate providing financial professionals with climate-related investment expertise to meet market demand for staff with specific climate analysis skills.

Incorporating practical and applied skills from practitioners based across the globe, the Climate Risk, Valuation and Investing Certificate is designed to support investors as they seek to account for climate-related factors in their investment decision-making processes.

The certificate attempts to address this knowledge and skills gap, helping analysts and portfolio managers to integrate climate considerations into valuation and portfolio construction processes across asset classes.

Richard Fernand, head of certificate management at CFA Institute, commented: “Our new Climate Risk, Valuation and Investing Certificate will be insightful, practical and address the needs of those investment professionals looking to apply climate analysis to investments. Uniquely, this certificate looks at climate risks from an investment practitioner-oriented viewpoint, addressing the practical application of climate factors in investment decisions.”

With a focus on real-world application, the advanced-level certificate, which candidates receive a certificate badge for completing, will require around 100 hours of learning. This is delivered across five distinct courses based on models and case studies received directly from industry professionals and subject-matter experts.

The five courses will cover climate science, risk and regulations; transition finance; climate and valuation in relation to listed equity, debt and alternatives; and portfolio management.

According to CFA Institute, the application-oriented curriculum will be complimented by a cohort-based learning experience that encourages community and shared learning among investment practitioners. Cohort learning allows for greater interaction between learners, encouraging them to share their perspectives on tasks via the use of discussion groups and online learning.

As part of a cohort, learners are expected to develop a comprehensive understanding of climate-related investing principles, learning how to apply them in the real world while building their network among like-minded professionals.

Fernand added: “The cohort approach is known to be an effective model for learning as it helps build a stronger sense of community among participants as they are going through the learning process at the same pace, which helps further develop their networks and provide motivation.”

This year the CFA Institute also launched the UK version of its diversity and inclusion code, and updated its Certificate in Climate and Investing to cover the latest developments in climate science, climate-related risks, and the evolving policy and regulatory landscape.

Registrations for the Climate Risk, Investing and Valuation Certificate are scheduled to open on 30 November.