About this course
This course 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.
Assessments of financial risk associated with climate change are increasingly informing decision-making in global capital markets. The Financial Stability Board's Taskforce on Climate-Related Financial Disclosures (TCFD) has set out a high-level framework for disclosing both climate risks and opportunities in financial reports, and financial regulatory authorities are beginning to move towards the mandatory disclosure of such risks.
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).
Finally, a growing number of investment managers and advisers are assessing exposure to climate change risks using Environment, Social, Governance (ESG) frameworks, and emerging climate service providers.
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.
This programme seeks to act as a catalyst for change. We assume no prior knowledge, but we do assume a keen interest in learning the tools required to help you think about future solutions linked to your day-to-day work.
Edinburgh has a proud history of innovation in financial services and is an important hub of sustainable finance.
The University of Edinburgh is a world-leading academic centre, with a number of research centres across a number of different Schools focused on understanding how climate is changing; the impact of these changes on the environment, society and economies; how professions and practices are responding, and how climate adaptation and mitigation strategies are evolving.
The Edinburgh Futures Institute; the Centre for Business, Climate Change and Sustainability (Business School); the Edinburgh Climate Change Institute (Geosciences) and others are at the forefront of these conversations providing a space for academia and practice to come together to create powerful solutions to the challenges we face.
Who will benefit from this programme?
This course will suit those who are growing their experience in sustainable finance or anticipating a move into this field.Is this course for you?