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FINC498 Special Topic: Advanced Modelling of Climate Finance Risks

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Advanced modelling of the financial impacts of climate change-related risks. Data extracting and processing tools and advanced forward-looking modelling skills such as climate stress testing and geospatial finance risk modelling.

Paper title Special Topic: Advanced Modelling of Climate Finance Risks
Paper code FINC498
Subject Finance
EFTS 0.1667
Points 20 points
Teaching period Semester 2 (On campus)
Domestic Tuition Fees Tuition Fees for 2022 have not yet been set
International Tuition Fees Tuition Fees for international students are elsewhere on this website.

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Prerequisite
FINC 399 (taken in 2021) or FINC 420
Eligibility

This paper is normally available for BCom (Hons), MFinc, MAccFin, PGDipCom students. Students ideally have prior experience with basic Python skills and if possible, GIS skills however this is not mandatory.

Contact

accountancyfinance@otago.ac.nz

Teaching staff

Dr Quyen Nguyen
Associate Professor Ivan Diaz-Rainey
Associate Professor Antoni Moore

Paper Structure

Topic 1: Introduction to data and modelling in climate finance

  • Introduction to paper, climate transition and physical risks and climate-related datasets
  • Basic Python scrips to extract, clean and process climate-related datasets

Topic 2: Measuring and modelling climate transition risks using stress testing approaches

  • Measures of transitions risk
  • Conventional financial stress testing
  • Climate stress testing
  • Stress testing transition risks of investing portfolios
  • Stress testing transition risks of lending portfolios

Topic 3: Measuring and modelling climate physical risks using geospatial approaches

  • Climate physical risk and geospatial approaches
  • Geospatial analyses on the impacts of global warming on agricultural firms
  • Scenario analyses on the impact of sea-level rise on mortgage portfolios
Teaching Arrangements
  • Lectures (3 hour) and labs (1 hour) per week for 13 weeks
  • In-class assignments, quiz
  • Individual written assignments and group written assignments
  • No final exam
Textbooks

There is no set textbook. The course will utilise readings from the literature and reports.

Graduate Attributes Emphasised

Critical thinking, information literacy
View more information about Otago's graduate attributes.

Learning Outcomes

Students who successfully complete the paper will:

  • Explore latest methods, datasets and modelling approaches used in analyses of climate finance risks
  • Develop advanced skills and knowledge of appropriate tool needed to undertake analyses of climate finance risks
  • Understand and critically analyse climate transition risks of firms, investors and financial institutions through climate stress testing approaches
  • Understand and critically analyse climate physical risk by employing geospatial analysis technique to model this risk
  • Design and implement a climate finance risk modelling project

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Timetable

Semester 2

Location
Dunedin
Teaching method
This paper is taught On Campus
Learning management system
Blackboard