Climate Aware Investing
Finance may have a central role to play against climate change on the condition that risks are properly measured and managed. In this course you will be introduced to the latest academic research findings and the most commonly used methods in industry to cope with climate change financial risks. How do we assess these kinds of risks? Can our portfolios perform well and at the same time contribute to the transition towards a low-carbon economy?
Monthly Subscription Starting at AED 99 + VAT
- Level Foundation
- Duration 15 hours
- Course by EDHEC Business School
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Offered by
About
Finance may have a central role to play against climate change on the condition that risks are properly measured and managed. In this course you will be introduced to the latest academic research findings and the most commonly used methods in industry to cope with climate change financial risks. How do we assess these kinds of risks? Can our portfolios perform well and at the same time contribute to the transition towards a low-carbon economy? How do climate change risks affect financial markets? This course starts with an overview of climate change and the tools at the disposal of policymakers to curb this phenomenon. These tools, when used to their fullest extent, will have a big impact on businesses and this impact may spill over into the financial markets even before the policies are fully implemented. The risks associated with these changes are grouped under the definition of transition risks. In this MOOC we will analyse these risks and also discuss the methodologies most widely used by asset managers to manage their portfolios’ carbon exposure. The final module of this course shows a real-world example of implementation. At the end of the course, you will understand how to maximize the contribution of your investments to the fight against climate change.Modules
Section 1 - From climate science to climate finance
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3
Videos
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2
Readings
3
Videos
- Causes & Consequences of Climate Change
- Economic roots of climate change
- Internalizing the externality
2
Readings
- Course overview
- Material at your disposal
Section 2 - How investment decisions can help fight climate finance
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3
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Module 1-Graded Quiz
1
Discussions
- Discussion Prompt - An economic problem: carbon emissions
3
Videos
- The landscape of climate finance
- Climate aware investing
- Climate Risk and ESG Investing
1
Readings
- Additional material - Module 1
Section 1 - Climate change risks
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3
Videos
3
Videos
- Motivations for climate risk management
- Type of climate risks: physical versus transition risks
- Climate Related Financial Disclosure
Section 2 - Climate change risk measures
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3
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Module 2-Graded Quiz
1
Discussions
- Discussion Prompt - ESG data
3
Videos
- Climate risks and ESG: indicators & providers
- Measure of Carbon emissions
- Heterogeneity in ESG & climate risk related measures
1
Readings
- Additional material - Module 2
Section 1 - Climate risks in equity markets
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3
Videos
3
Videos
- Carbon intensity versus carbon footprint measures
- Sector biases in climate investing
- Climate risks and Security selection decisons
Section 2 - Carbon risk impact on risk and performance
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3
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Module 3-Graded Quiz
1
Discussions
- Discussion Prompt - low-carbon investing
3
Videos
- Impact of low carbon filter
- Carbon intensity and Equity performance
- Carbon intensity and Equity performance - A closer look
1
Readings
- Additional material - Module 3
Section 1 - Climate risk and portfolio decisions
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3
Videos
3
Videos
- Carbon price exposure and equity risk
- Improve carbon beta estimates
- Measuring and Managing carbon risks in equity portfolio
Section 2 - Climate risk and equity products
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3
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Module 4-Graded Quiz
1
Discussions
- New Discussion - Carbon beta
3
Videos
- Benefits and limits of active investing
- The rise of passive investing
- Passive climate aware investing
1
Readings
- Additional material - Module 4
Section 1 - Portfolio optimization techniques for climate investing
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3
Videos
3
Videos
- Risks and rewards in equity portfolios
- Designing a replication strategy
- Replication strategies with carbon constraints
Section 2 - Case study in climate investing
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3
Videos
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3
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Module 5-Graded Quiz
1
Discussions
- New Discussion - Positive and negative screening
3
Videos
- Case study - Preparing the data
- Case study - Carbon efficiency and tracking error
- Case study - Positive and Negative Screening
3
Readings
- Case study
- Additional material - Module 5
- Congratulations !
Auto Summary
"Climate Aware Investing" is an insightful course offered by Coursera, positioned within the Business & Management domain. This course is designed to enlighten learners about the pivotal role finance can play in combating climate change, provided that the associated risks are accurately measured and managed. Led by expert instructors, this course delves into the latest academic research and industry-standard methods for handling climate change financial risks. It comprehensively covers how to evaluate these risks, the impact of climate change on financial markets, and the performance potential of eco-conscious portfolios. The curriculum begins with an understanding of climate change and the policy tools available to mitigate it, emphasizing the significant influence these tools can have on businesses and financial markets. Learners will explore the concept of transition risks and the strategies asset managers employ to manage carbon exposure in their portfolios. The course culminates with a practical example of applying these methodologies in real-world scenarios. Spanning approximately 900 minutes of content, this foundational-level course is accessible through Coursera's Starter subscription option. It is ideal for finance professionals, asset managers, and anyone interested in integrating climate awareness into their investment strategies. By the end of the course, participants will be equipped to enhance their investment contributions towards a sustainable, low-carbon economy.
LIONEL MARTELLINI -EDHEC BUSINESS SCHOOL
EMANUELE CHINI - EDHEC BUSINESS SCHOOL