The UK branch of the global association of investment professionals, CFA UK, is developing a new certificate in climate and investing, stating it will help the investment management industry address growing concerns about climate change.

The final syllabus and learning materials are currently under development ahead of the certificate's launch in early 2022.

According to Will Goodhart, chief executive of CFA UK, climate considerations are increasingly becoming a fundamental driver of risk and return at both a macro and micro level.

"As the world navigates the climate crisis and political, economic, and social action focuses on decarbonization, investment professionals must understand the threat and opportunity that climate represents at every stage of the investment decision-making process. That is why we're developing the certificate in climate and investing," he says.

The certificate in climate and investing aims to provide the knowledge and skills required by investment professionals to understand climate as it relates to investing and how to integrate climate change considerations into the investment process. More details on its launch, syllabus content and rollout will be provided in the coming months, according to CFA UK.

Danish CFA Society to participate in pilot group

The launch of the climate and investing certificate follows the ESG investing certificate, which was launched in 2019. The green ESG designation was also established by CFA UK, which was owner and responsible for administration until the beginning of September, when duties were transferred to the parent organization, CFA Institute.

When the CFA Society UK had its pilot group during the fall of 2019, CFA Society Denmark, domestically known as Finansforeningen, participated with one student in the form of Lars Bo Bertram, CEO of Danish asset manager BankInvest and at the time chairman of CFA Society Denmark.

CFA Society Denmark's CEO Michael Albrechtslund tells AMWatch that the plan is to follow the same procedure this time.

"This means that we're participating in the pilot project of the climate investing certificate and the following evaluation of it. I expect that we will distribute the new certificate in Denmark given that we are part of the pilot group, although I cannot confirm at this stage," Albrechtslund says.

Albrechtslund says that it will once again be Lars Bo Bertram who participates in the pilot project as Finansforeningen's representative. AMWatch talked to Bo Bertram after he completed the ESG education as the first Dane, where he was in no doubt that employees working with investments need to become qualified within sustainability.

"Otherwise you will become a dinosaur - sustainability is a huge trend," Bo Bertram said.

Keeping up with the curriculum

CFA UK established the ESG certificate less than two years ago, but the learning materials have already changed significantly. The reason is, among other things, due to changes in the regulatory environment, such as the EU Sustainable Financial Disclosure Regulation, which went into effect in March 2021.

"Members that have obtained the ESG investment certificate can receive the updated syllabus to make sure that they can keep up with all the changes," Albrechtslund explains.

How many members of the CFA Society Denmark have obtained the ESG Investing certificate?

"We have tried to search for the information, but because the administration of the ESG investing certificate is being transferred from CFA UK to the CFA Institute, I cannot give you the exact number. However, I estimate that 130-150 have signed up for certificate and with the pass rates I am familiar with, roughly 70-80 have got it," he says.

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