Climate Investing case studies

Climate Investing · Put your knowledge to work in context.

The Climate Risk, Valuation, and Investing Certificate is a self-paced, five-course online program from CFA Institute that teaches how to build climate considerations into investment decision-making and how to explain climate concepts to clients and stakeholders. It sits on the sustainability learning path and is positioned as the more advanced option: the Sustainable Investing Certificate builds foundational sustainability knowledge, while this certificate develops the practical skills needed to apply climate considerations in valuation and portfolio construction. The Climate Investing case studies are 5 cases and about 5,117 words.

Coastal Mortgage Book, Scenario Choice, and the 'Unmodellable' Physical Risk Problem

A US regional bank holds 6.8bn of residential mortgages, with 2.4bn concentrated in three coastal counties. Downscaled projections for those counties indicate 0.45–0.65m of sea-level rise by 2050 under SSP3-7.0, and about 30% of the exposure sits in FEMA A/E zones currently being remapped.

998 words, about 5 min 2

Steel Producer SLB: Whether a 7% Intensity Cut Qualifies as Transition Finance

An ASEAN-headquartered steel producer with 5.4 Mt of crude steel capacity is seeking a $750m sustainability-linked loan. Blast furnaces make 71% of output; the remainder is scrap-EAF.

988 words, about 5 min 3

European Utility DCF: Carbon in the Cash Flows or a WACC Premium?

A portfolio manager is valuing a Central European integrated utility: 4.1 GW installed, of which 38% lignite, 22% nuclear, and the balance hydro and gas. Free EU ETS allocation for the lignite units falls to zero by 2030.

1,058 words, about 5 min 4

District Heating Acquisition: Coal Exit, Co-Ownership, and a 2036 Bullet

A European infrastructure fund is bidding for a district heating network serving 210,000 households. Heat supply is 58% from a 190MW coal CHP unit co-owned with an industrial partner, 27% waste-to-energy, and 15% gas peakers.

1,022 words, about 5 min 5

Pension Scheme Stewardship: A 31% WACI Fall That Is Mostly Reallocation

A $32bn pension scheme reports that the weighted average carbon intensity of its listed equity portfolio fell 31% between 2019 and 2024, against a 2030 target of –50%. Attribution shows 60% of the fall came from sector reallocation into software and semiconductors, 25% from selling two utilities and an integrated oil major, and 15% from genuine intensity reduction in holdings.

1,051 words, about 5 min