Climate Change Risk in Finance

Overview

This Climate Change Risk in Finance Certificate from The University of Edinburgh will be delivered online over 12 weeks. Content is delivered by experts in their field and the live sessions will be an opportunity to share, reflect, and engage with other practitioners.

In parallel, central banks are increasingly integrating climate risks into their activities and supervisory authorities are calling for the integration of climate risk information into financial stability monitoring (stress testing) and micro-supervision (scenario analysis).

The desire of governments, regulators, standard-setters and business to understand how climate change can be a threat multiplier to key macro-financial risks requires to translate insights from climate science and climate modelling into micro and macroeconomic impacts, and eventually into financial risks.

Over the course of 12 weeks, you will:

• Explore the emerging theories of sustainable finance and climate-related financial risks.
• Be introduced to climate change fundamentals and terminology.
• Understand how to translate the complex climate information compiled from observations and near- and long-term model predictions for financial decision-makers.
• Understand how to assess and quantify the direct risks arising from climate change on physical assets, businesses, and portfolios; but also potentially near-term disruptive impacts associated with mitigation policies, changing preferences, and ongoing technological change.
• Understand the impact of climate change on different financial asset classes (including equity markets and fixed-income markets).
• You will build confidence in applying learnings from the academic theoretical and empirical literature.