To help financial services professionals pass the so-called Carney test, the Chartered Body Alliance – which consists of the Chartered Insurance Institute (CII), Chartered Institute for Securities & Investment (CISI), and the Chartered Banker Institute (CBI) – has launched the Certificate in Climate Risk.
The alliance’s first joint qualification, the Certificate in Climate Risk is aimed at providing financial services professionals the opportunity to develop the expertise required to manage climate risks, as well as identifying the challenges and opportunities from the net zero transition.
“Managing climate-related risks and supporting the transition to a low carbon world is one of the most significant challenges facing the world today,” said CII chief executive Sian Fisher.
“This qualification from the Chartered Body Alliance will develop the capacity and capability of finance and risk professionals globally in this key area to ensure they can help consumers and corporate clients make financial decisions that include the consideration of climate change.”
The move is in line with United Nations special envoy on climate action and finance and former Bank of England governor Mark Carney’s push for climate change to be taken into account when making professional financial decisions.
It was highlighted that certified professionals will be capable of examining the challenges in measuring, monitoring, and reporting climate risks. Those with the certificate will also be able to outline common approaches to modelling climate risks and examine regulatory responses.
Additionally, the new qualification spans climate risk appetite as well as governance and culture. It also delves into the opportunities for the financial services sector to support the transition to a sustainable, low-carbon world.
“Recognising the need for ambitious and urgent climate action, the three leading UK-based, global professional bodies forming the Chartered Body Alliance have developed the Certificate in Climate Risk, and accompanying study materials, to lead the upskilling and reskilling of finance and risk professionals globally,” noted CBI CEO Simon Thompson.
“This is the first time we have developed a joint qualification in this way, and we are proud to work together, in the public interest, to play our part in tackling our greatest global challenge.”
CISI chief executive Simon Culhane, meanwhile, described the new certificate as “testament to the effectiveness of the unity” which can be achieved by the Chartered Body Alliance for the financial services profession.