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Chartered Banker Institute Certificate in Green and Sustainable Finance — Information & Free Practice

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About Chartered Banker Institute Certificate in Green and Sustainable Finance

Chartered Banker Institute Certificate in Green and Sustainable Finance · GB

Key exam facts

Provider
Chartered Banker Institute — qualification owner and awarding body; CISI distributes in partnership and is explicitly not the awarding body.
Format
One online multiple-choice examination, available remotely or at a test centre.
Exam questions
Total questions: 75.
Time limit
90 minutes of examination time; approximately 12 weeks is the suggested study duration, not exam time.
Passing score
Minimum score of 60%.
Exam fee
GBP £625 includes the first examination entry; resit GBP £145 per module. Student membership GBP £45 annually during study (direct Institute route; partner bundles differ).

Topics covered

  • AN INTRODUCTION TO GREEN AND SUSTAINABLE FINANCE

    • Define the terms ‘green’ and ‘sustainable’ finance, and distinguish between these and related terms.
    • Describe a range of approaches to green and sustainable finance.
    • Describe the opportunities and challenges for green and sustainable finance.
    • Describe the UN Sustainable Goals (SDGs).
    • Outline the development of the green and sustainable finance sector globally.

  • CLIMATE CHANGE AND OUR CHANGING WORLD

    • Explain the key factors that underpin the science of climate change and global warming.
    • Outline the more recent IPCC assessments of climate change.
    • Describe the risks and opportunities for the finance sector arising from our changing environment.
    • Explain the nature of, and challenges arising from, ‘stranded assets’ and the ‘carbon bubble’.
    • Outline the ways in which the finance sector can support the transition to a sustainable, low-carbon economy.

  • BUILDING A SUSTAINABLE FINANCIAL SYSTEM

    • Identify a range of key actors involved in building a sustainable financial system.
    • Identify key policy and regulatory frameworks that support green and sustainable finance.
    • Explain how intergovernmental bodies, governments and other organisations support the development of green and sustainable finance.
    • Describe a range of key industry initiatives on green and sustainable finance.
    • Explain the ways in which sustainability may be embedded in organisational strategies.

  • MEASURING AND REPORTING IMPACTS, ALIGNMENT AND FLOWS OF GREEN AND SUSTAINABLE FINANCE

    • Outline how environmental and sustainability performance and impacts can be measured and reported
    • Describe some of the frameworks and tools commonly used to measure and report impacts, and identify key organisations and approaches involved
    • Explain the importance of independent, external review
    • Describe approaches to monitoring the alignment of lending and investment portfolios with the objectives of the Paris Agreement, including PACTA and SBTi
    • Explain the importance and challenges of monitoring, measuring, and reporting flows of finance to track progress towards achieving Article 2.1 (c) of the Paris Agreement
    • Describe how advances in data availability and analysis can support impact analysis and monitoring flows of finance

  • RISK MANAGEMENT

    • Describe the nature and importance of key climate-related and environmental risks.
    • Explain the different types of climate-related risk (physical, transition, liability) and their impact on the finance sector.
    • Describe the emergence of climate-related and environmental risks as priorities for central banks, regulators and policymakers.
    • Examine approaches to identifying, disclosing, managing and pricing climate-related risks, the use of scenario analysis, and the evolving regulatory agenda in this area.

  • RESPONSIBLE RETAIL, COMMERCIAL AND CORPORATE BANKING

    • Describe how banking activities can impact the environment and society – both positively and negatively - and play a key role in a successful transition to net zero
    • Describe the UN Principles for Responsible Banking, and the Net Zero Banking Alliance, and how these support the alignment of banking with the objectives of the Paris Agreement and the UN Sustainable Development Goals
    • Describe how banking products and services can align finance with the Paris Agreement, and other sustainability objectives, and support customers and clients in adopting more sustainable business models and behaviours.
    • Describe the ‘Green Loan Principles’, ‘Social Loan Principles’ and ‘Sustainability Linked Loan Principles’.
    • Cite examples and case studies of responsible, innovative green and sustainable banking products and services.

  • GREEN AND SUSTAINABLE BONDS

    • Describe the range of debt products available to green and sustainable finance investors.
    • Describe the main types and features of green and sustainable bonds, including green sukuk.
    • Explain what is meant by the ‘Green Bond’ ‘Social Bond’ and ‘Sustainability-Linked Bond’ Principles, and the ‘Sustainability Bond Guidelines’ and how these and other frameworks, standards and guidelines support the development of the green and sustainable bond market.
    • Describe how securitisation may be used to support smaller green and sustainable finance projects and help these grow and develop.

  • CENTRAL AND DEVELOPMENT BANKS

    • Explain the role of central and development banks (national and multilateral) in relation to green and sustainable finance.
    • Describe how central banks can support the transition to a low-carbon economy.
    • Describe how development banks play a key role in promoting sustainable economic development, and the key products and services they provide in order to do so.
    • Cite examples and case studies of central and development banks supporting green and sustainable finance.

  • RESPONSIBLE AND SUSTAINABLE INVESTMENT

    • Explain the role of investment within the wider financial system, and how investment impacts and is impacted by environmental and social sustainability factors.
    • Describe different investment approaches and products, their suitability for different types of investors, and how they may support green and sustainable finance.
    • Describe the growth in sustainable investment, and the reasons for this.
    • Explain the differences and similarities between sustainable investing, ESG, impact investing and other related terms.
    • Describe different types of investment funds and explain how these may support investment in green and sustainable finance.
    • Explain the risks of greenwashing, and other challenges to the growth of sustainable investing.

  • INSURANCE - IMPACT UNDERWRITING

    • Describe the role of insurance within the wider financial system, and how climate-related financial risks are impacting the insurance sector.
    • Describe how different insurance activities, products and services can improve the quality and functioning of the natural environment and natural systems.
    • Explain how impact underwriting can promote more environmentally and socially sustainable consumer behaviour
    • Cite examples and case studies of green and sustainable insurance products and services.

  • GREEN AND SUSTAINABLE FINTECH

    • Explain what is meant by FinTech and associated terms.
    • Explain how FinTech tools and techniques can support the growth of green and sustainable finance and help align finance overall with the aims of the Paris Agreement, the UN Sustainable Development Goals, and other sustainability objectives.
    • Explain the benefits of applying FinTech tools and techniques to support green and sustainable finance
    • Explain challenges that may arise from using FinTech tools and techniques to support green and sustainable finance.

  • THE FUTURE OF GREEN AND SUSTAINABLE FINANCE

    • Explain why it is vital to the finance sector and society as a whole for green and sustainable finance to become part of mainstream finance.
    • Consider progress to date in aligning finance with the objectives of the Paris Agreement and the UN Sustainable Development Goals.
    • Describe key challenges to mainstreaming green and sustainable finance.
    • Describe emerging and evolving areas of interest in green and sustainable finance.
    • Explain the role of Green and Sustainable Finance Professionals, and what individuals can do to promote and embed green and sustainable finance.
    • Develop a personal action plan for embedding the principles and practice of green and sustainable finance in their professional activities.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

One online multiple-choice examination, available remotely or at a test centre.

How many questions are on the exam?

Total questions: 75.

How long is the exam?

90 minutes of examination time; approximately 12 weeks is the suggested study duration, not exam time.

What is the passing score?

Minimum score of 60%.

How much does the exam cost?

GBP £625 includes the first examination entry; resit GBP £145 per module. Student membership GBP £45 annually during study (direct Institute route; partner bundles differ).

Official sources and references

Confirm current exam arrangements with the exam provider.