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The Science of Climate Change
Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.
Tackling the Plastic Crisis
Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.
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The Scale of the Net Zero Challenge
The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.
ESG, Sustainability and Impact Jargon Buster
ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.
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Lewis Howard
The quality of the content is very high, the UI is super easy to use, and we can see how the content will be impactful at scale.
Nicola Stürmer
Our people have a strong growth mindset and access to this sort of material satisfies that curiosity and our need as a business to retain our talent through the provision of a quality learning experience.
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Categories
Discover our Courses
Featured Pathways
More pathways
The Science of Climate Change
Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.
Tackling the Plastic Crisis
Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Sustainability Unlocked to your current platform
Featured Content
More featured content
The Scale of the Net Zero Challenge
The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.
ESG, Sustainability and Impact Jargon Buster
ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Lewis Howard
The quality of the content is very high, the UI is super easy to use, and we can see how the content will be impactful at scale.
Nicola Stürmer
Our people have a strong growth mindset and access to this sort of material satisfies that curiosity and our need as a business to retain our talent through the provision of a quality learning experience.
More testimonials
Ready to get started?
Asset Pricing Theory of Climate Hedge Portfolios
Robert Engle
Nobel Prize winning economist
In this video collaboration with MMF, Nobel Laureate and economist Robert Engle explores the asset pricing theory behind hedge portfolios, as well as how you would build a portfolio using either fundamental or statistical analysis.
In this video collaboration with MMF, Nobel Laureate and economist Robert Engle explores the asset pricing theory behind hedge portfolios, as well as how you would build a portfolio using either fundamental or statistical analysis.
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Asset Pricing Theory of Climate Hedge Portfolios
6 mins 14 secs
Robert Engle argues that risky stocks are less desirable than stocks which are minimally risky. Stocks that are exposed to climate risk are not desirable but could expect to have higher expected returns and a hedge investor will want to short this risk. To build a hedge portfolio, fundamental analysis can be undertaken based on how climate change is going to impact industries or statistical analysis which recognises how stocks will react based on climate change news.
Key learning objectives:
Learn what a climate hedge portfolio is
Understand two analytic approaches to building a climate hedge portfolio
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This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
What is the asset pricing theory behind hedge portfolios?
Brown stocks are less desirable than green stocks. Stocks that are exposed to climate risk are not desirable but could expect to have higher expected returns and a hedge investor will want to short this risk. However, shorting these companies that are exposed to risk and going long companies that are not exposed to this risk, means you're going to achieve a negative risk premium. This says that your investment is going to underperform the market on average, which is a bad selling point to investors.
What are the two analytic approaches to building a hedge portfolio?
1. Fundamental analysis
This involves using data to frame how you think climate change is going to impact different industries. However, ESG data is often criticised as incomplete and not measuring specifically what is needed.
2. Statistical analysis
This recognises that when there is news about climate change, we would know which stocks are going up and which ones are going down and use this as a basis to form this portfolio.
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This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Robert Engle
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