The CFA climate investing certificate has garnered great interest in recent years as climate change risks become an integral part of investment analysis. As the first climate finance qualification launched by the CFA Institute, the certificate provides essential knowledge on integrating climate considerations into the investment process. This article will analyze the key requirements and content of the CFA climate investing exam.
CFA climate investing certificate eligibility and fees
The CFA climate investing certificate is open to all candidates regardless of background or qualifications. The only requirement is an valid ID such as a passport to register for the exam. The exam fees are USD 795 which covers preparation materials, access to online practice exams, and the final certificate upon passing. Unlike other CFA designations, no membership fee is required to enroll in the program or maintain the certificate.
CFA climate investing exam structure and format
The CFA climate investing exam is a 100 multiple choice question computer-based test that lasts 140 minutes. Questions test candidates’ understanding of key climate change risks and opportunities across the investment chain. Topics span environmental, social and governance (ESG) integration, climate policy, measurement of climate exposures, scenario analysis, disclosure and reporting among others. The exam has no separate levels and can be taken anytime at approved test centers after registration.
CFA climate investing exam preparation timeline
While candidates can decide when they feel prepared to attempt the exam after registering, the CFA Institute recommends around 100 hours of study time. Self-directed learning is facilitated through the comprehensive curriculum reading, online practice questions and mock exams. Many candidates are able to pass the exam with 60-80 hours of focused preparation over 2-3 months. Key is concentrating on the core concepts and quantitative climate tools that feature heavily on the test.
CFA climate investing exam content and competencies tested
The CFA climate investing curriculum and exam aims to equip candidates with the key knowledge and skills used by practitioners to incorporate climate change in investments today. This includes qualitative and quantitative techniques to assess transition and physical risks, recommend disclosure regimes, and construct climate-resilient portfolios among others. Questions test the practical application of climate analytics based on real-world scenarios across industries, regions and asset classes.
The CFA climate investing certificate has fast emerged as an essential qualification for investment professionals looking to better understand and act on climate change risks. Its comprehensive coverage of concepts supplemented by case studies provides a strong foundation to put ideas into practice. Meeting the eligibility criteria and focused preparation centered around the curriculum are key to passing the exam.