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Week 4 of eight in the Green Finance Professional Certificate, 108 contact hours for finance professionals, taught at the University of Twente and published by the Erasmus+ GREEN FINANCE project under CC BY 4.0. The project's second programme, the micro-credential, is five modules and 30 lessons worth 4 credits in the European Credit Transfer and Accumulation System (ECTS).

Week 4: Climate Risk Assessment

Learning Goals

  1. Understand climate risk frameworks including TCFD and physical vs transition risks
  2. Apply carbon metrics and temperature alignment methodologies
  3. Conduct scenario analysis for portfolio climate risk assessment

Topics Covered

  • TCFD framework and recommendations
  • Physical risks vs transition risks
  • Carbon footprinting (Scope 1, 2, 3)
  • Climate Value-at-Risk
  • Temperature alignment metrics
  • NGFS scenarios

Data behind the figures

The week models a portfolio’s climate exposure, and the modelling rests on three sources of data. None of them is redistributed with the slides; each is obtained from its publisher, on the publisher’s own terms.

SourceWhat it suppliesTerms
Network for Greening the Financial System scenariosthe six reference scenarios on slide 24, and the pathways behind the Climate Value-at-Risk worked examplepublished by the NGFS and hosted on its scenario portal; free to use, registration required
CDP disclosurescompany-reported emissions across Scopes 1, 2 and 3responses are published by CDP; bulk access is licensed
MSCI ESG Research estimatesmodelled emissions where a company does not reportcommercial subscription

Materials

(c) Joerg Osterrieder, University of Twente

The project's published teaching material is free to use under CC BY 4.0. Attribute it to the GREEN FINANCE consortium and name the grant, 101237817.

Co-funded by the European Union - Erasmus+ Programme

Erasmus+ Programme | Capacity Building in Higher Education
Project 101237817 - GREEN FINANCE
Material on this site is published under CC BY 4.0, attributed to the GREEN FINANCE consortium.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Education and Culture Executive Agency (EACEA). Neither the European Union nor EACEA can be held responsible for them.