"I believe the development of the Institute’s Green Finance Certificate, the world’s first benchmark qualification for green finance professionals, is such a significant development. It’s also a development that I am extremely proud of. While there has been great progress made in rebuilding the finance profession over the last decade, we still need to do much more to reconnect finance and society and to rebuild people’s trust in our profession. Ensuring that sustainability and stewardship sit alongside credit, risk, operations and technology as key aspects of financial professionalism, will help us to do this, as well as helping current and future generations of Chartered Bankers and financial professionals to demonstrate the positive social purpose that finance can, and should have."  

Simon Thompson, Chief Executive, Chartered Banker Institute 

 

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Green Finance

What is Green Finance?

“Any financial initiative, process, product or service that is designed to protect the natural environment and support the transition to a sustainable, low-carbon world; and/or manage climate-related and other environmental risks impacting finance and investment”

This is a broad definition which acknowledges the different dimensions of the concept of green finance,  while retaining an overarching focus on enhancing and sustaining the natural environment, and managing current and future environmental risks - particularly, but no, exclusively, climate change. It highlights and recognises the two-way nature of the relationship. Finance and investment can help or harm the environment, while the environment can also positively or negatively impact the performance of investments and finance services firms. 

Green finance certificate

 

What is Sustainable Finance?

"The inclusion of economic, environmental and social factors in an organisation’s strategy, management, activities and operations; combined with the financing of sustainable economic, environmental and social objectives.” 

resescoues 

International partners 

To read the full first chapter and learn more,  please click the link below. 

Chapter 1: AN INTRODUCTION TO GREEN AND SUSTAINABLE FINANCE

 

Why study the Green Finance Certificate?

The Certificate is the world’s first benchmark qualification for Green Finance.  The Certificate provides learners with a comprehensive overview and understanding of the evolving Green Finance sector, covering:

  • Scientific background to Green Finance – climate science and the transition to a low carbon world
  • Global, international and national responses to climate change
  • Climate-related financial risks, stranded assets and other environmental risks
  • Key Green Finance principles, including the UN Sustainable Development Goals, TCFD, Green Bond Principles and Green Loan Principles
  • Importance of monitoring and verification
  • Green Finance products and services (banking, insurance and investment)
  • Green FinTech
  • Ethical dimensions of Green Finance and the Role of the Green Finance Professional

 

 

As the finance sector aims to meet the challenges of climate change and the transition to a low-carbon world, green finance has grown increasingly mainstream. Green and Sustainable Finance is a comprehensive guide to the application of common green and sustainable practices in banking, investment and insurance, pre-order here

 

Green Finance Certificate

Green Finance Certificate

Green Finance Certificate

The world's first qualification for Green Finance - updated for 2019. Developing financial services professionals’ knowledge of the science behind, and the principles and practice of Green Finance.

CISI  -The CISI is the largest and most widely respected professional body for the securities and investment profession in the UK and in a growing number of financial centres globally.

UK Finance - UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry,  they act to enhance competitiveness, support customers and facilitate innovation.

FINSIA - FINSIA is the professional body in Australia and New Zealand for the financial services industry. FINSIA, the Financial Services Institute of Australasia, origins go back to 1886, when the AIBF was established by a group of bankers to drive improvements in professional practice and high standards of conduct.

Hong Kong Institue of Bankers - Established in 1963, The Hong Kong Institute of Bankers (HKIB) is the first non-profit institution that provides training and certification services to the banking community in Hong Kong. Playing an important role in talent development in the local banking industry. 

The Institute of Banking and Finance Singapore - The Institute of Banking and Finance Singapore (IBF) was established in 1974 as a not-for-profit industry association to foster and develop the professional competencies of the financial industry. 

Key Terms

Green Finance

Any financial initiative, process, product or service that is designed to protect the natural environment and support the transition to a sustainable, low-carbon world; and/or manage climate-related and other environmental risks impacting finance and investment. 

Sustainable finance

The inclusion of economic, environmental and social factors in an organisation’s strategy, management, activities and operations; combined with the financing of sustainable economic, environmental and social objectives

Just transition

Ensuring that the transition from a high to low carbon economy is fair for current and future generations, particularly those communities and workers most impacted 

Climate change mitigation

Projects and activities that aim to reduce greenhouse gas emissions and the rate of climate change.

Climate change adaptation

Projects and activities that aim to improve resilience to the effects of climate change.

Renewable energy

Energy that comes from a source that is not depleted when it is used or is naturally replenished within a human timescale.

Fossil fuels

Fuel that is formed from the decayed remains of plants or animals, such as coal and oil.

Biodiversity

The full range of ecosystems, species and gene pools in the environment – the full variety of plant and animal life on earth.

Embedded approach

An approach that sees the financial system as embedded in the economy, society and the environment.

De-carbonisation

Reducing the amount of carbon (e.g. carbon dioxide or methane) emitted from an agricultural, industrial or other process.

Divestment

The opposite of an investment, e.g. selling rather than buying an asset such as shares in a firm.

Net carbon footprint

Total greenhouse gas emissions associated with the production, processing and consumption of products and services, offset by activities to mitigate emissions, such as Carbon Capture and Storage.

Paris Agreement

In December 2015, countries agreed to combat climate change and to accelerate and intensify the actions and investments needed to support the transition to a low-carbon world. The Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise in the 21st century below 2 degrees Celsius above pre-industrial levels and to pursue greater efforts to limit the temperature increase to 1.5 degrees Celsius. The Agreement entered into force in November 2016, after countries accounting in total for at least 55% of total global greenhouse gas emissions ratified the Agreement. 

Intergovernmental Panel on Climate Change (IPCC)

The United Nations body that assesses the science related to climate change. The IPCC provides regular assessments of the scientific basis of climate change, its impacts and future risks, and options for adaptation and mitigation. 

Tragedy of the horizon

The mismatch between business, political and regulatory cycles, and the timescale needed to prevent climate change impacting on financial stability.

Stakeholder value approach

An approach that sees the role of business as generating value for all the stakeholders it serves.

UNFCCC

United Nations Framework Convention on Climate Change. Agreed in 1992, and ratified by 197 parties to the Convention, the UNFCCC is the key international treaty providing a global framework for combating climate change.  The Paris Agreement (see above) is an agreement reached within the UNFCCC process. 

Greenwashing

Making false, misleading or unsubstantiated claims about the positive environmental impact of a product, service or activity.

UN Sustainable Development Goals

17 objectives agreed by 193 countries in 2015 to address the major environmental, social and economic challenges of our time.