Climate Investing study plan

Distinguish physical risk from transition risk and map each to the transmission channels (revenue, cost, asset value, cost of capital) used in climate-aware valuation

Explain the greenhouse-gas accounting scopes 1, 2, and 3 and identify which scope dominates emissions for a typical high-emitting sector

Summarize the core mechanics of the TCFD and ISSB climate disclosure frameworks and state what each requires of an issuer

Interpret the IPCC emissions pathways and explain what net zero by 2050 implies for cumulative carbon budgets

Compare the main national and regional climate policy instruments (carbon pricing, cap-and-trade, disclosure mandates, taxonomy rules) and their likely valuation impact

Calculate a company's carbon exposure under a stated carbon price and show the effect on EBITDA margin

Identify the regulatory scenarios most likely to create stranded-asset risk for a given sector

Explain how scenario analysis (for example a 2°C versus a 4°C pathway) is used to stress-test cash flows

Define transition finance and distinguish it from general sustainability-linked financing

Explain the structure and use-of-proceeds logic of green bonds, sustainability-linked bonds, and transition bonds, including key performance indicators and step-up features

Identify the main transition-finance taxonomies and explain the criteria that determine eligibility

Assess the credibility of a transition plan against stated targets, capex alignment, and governance

Explain how the cost of capital differs between green and brown assets and what evidence supports a green premium or brown discount

Model the impact of a change in the cost of debt on a project's net present value using a simple discounted cash flow

Describe how transition finance affects an issuer's credit profile and refinancing risk

Connect transition-finance flows to the valuation assumptions used in listed equity and debt analysis

Build a climate-adjusted valuation for a listed equity by adjusting revenue growth, operating costs, and terminal value for transition risk

Explain how physical risk enters equity valuation through asset impairment, insurance costs, and revenue disruption

Analyze how climate risk is priced in corporate credit spreads and sovereign yields

Distinguish transition risk from physical risk in fixed-income duration and credit migration analysis

Explain how climate risk is incorporated into private equity and infrastructure due diligence, including asset-level physical risk assessment

Describe the valuation adjustments applied to real assets exposed to transition risk, such as fossil-fuel infrastructure and carbon-intensive real estate

Evaluate how climate risk affects real estate cash flows through energy-efficiency standards, insurance, and tenant demand

Assess the role of blended finance and concessional capital in de-risking climate-aligned infrastructure investment

Construct a portfolio-level climate risk assessment using weighted average carbon intensity and scenario-based stress testing

Explain how portfolio decarbonization targets interact with tracking error and sector allocation constraints

Design a stewardship engagement plan with escalation steps and measurable outcome criteria

Evaluate proxy voting and shareholder resolution strategies on climate-related items

Synthesize the five domains into an integrated climate investment thesis for one sector

Diagnose weak areas using timed practice questions and targeted review of missed concepts

Rehearse explaining climate-adjusted valuation assumptions concisely under time pressure

Consolidate formulas, frameworks, and definitions into a single reference sheet