The group says the new qualification will help financial services professionals pass the “Carney Test,” a new climate change challenge.

Former Bank of England Governor Mark Carney, a COP 26 finance adviser and United Nations special envoy, wants to build a private finance system for a ‘net zero’ strategy to ensure that professional financial decisions take climate change into account.

To meet his objective, referred to as the “Carney Test”, the Chartered Body Alliance has developed a new Certificate in Climate Risk.

The Chartered Body Alliance comprises the Chartered Insurance Institute (parent body of the Personal Finance Society which provides the Chartered Financial Planner designation), the Chartered Institute for Securities & Investment (which runs the Certified Financial Planner designation in the UK) and the Chartered Banker Institute. 

The new course will help financial services professionals build expertise in managing 'climate risk' and “identify the challenges and opportunities from the transition to net zero.”

The course will cover the challenges in measuring, monitoring and reporting climate risks using the data available. Successful candidates will be able to outline common approaches to modelling climate risks, including the use of scenario analysis and regulation. 

The aim is that finance professionals will be able to embed climate risk in their strategies and be capable of discussing the opportunities for the financial services sector to support the transition to a sustainable, low carbon world. 

The Certificate in Climate Risk requires a one-and-a-half-hour online examination, consisting of 75 multiple choice questions.

To prepare them for the test, professionals will receive an online study guide for core reading and learning activities, interactive eLearning modules, plus online quizzes and knowledge checks to embed their understanding of key concepts. 

Sian Fisher, CEO of the Chartered Insurance Institute, said: “Managing climate-related risks and supporting the transition to a low carbon world is one of the most significant challenges facing the world today. 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.” 

Simon Culhane, Chartered FCSI, CEO of the CISI said: “This new Certificate in Climate Risk is testament to the effectiveness of the unity which can be achieved for our financial services profession by the Chartered Body Alliance. Ahead of the UK hosting the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow in November this year, the focus for global financial services practitioners - for themselves, their clients, and their firms - is to ensure their knowledge and skills are current and reflective of market and societal developments.”

Simon Thompson, CEO of the Chartered Banker Institute, said the alliance was playing its part in “tackling our greatest global challenge.”