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| Section | Weight | Objectives |
|---|
| Topic 1: Foundations of Climate Change | 12.5% | - Global climate frameworks and agreements - Climate science basics and evidence - Physical and transition risks
|
| Topic 2: Climate Models and Scenario Analysis | 12.5% | - Using results for decision-making - Scenario design and assumptions - Modeling approaches and limitations
|
| Topic 3: Sustainability | 12.5% | - UN Sustainable Development Goals - Definitions: sustainability, ESG, climate risk - Sustainability in finance and business
|
| Topic 4: Sustainability and Climate Policy, Culture, and Governance | 18.75% | - Global and regional regulatory frameworks - Organizational culture and strategy alignment - Corporate governance and board oversight
|
| Topic 5: Net Zero, Climate and Nature Risk, Transition Planning | | - Nature-related risks and biodiversity - Net zero targets and pathways - Transition planning and carbon reporting
|
| Topic 6: Green and Sustainable Finance: Markets and Instruments | 12.5% | - Sustainable investment strategies - Market standards and verification - Green bonds, sustainability-linked instruments
|
| Topic 7: Climate Change Risk | 12.5% | - Physical risk impacts - Risk identification and classification - Transition risk drivers
|
| Topic 8: Climate Risk Measurement and Management | 18.75% | - Integration into risk management frameworks - Risk assessment methodologies - Metrics, indicators, and disclosure
|
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Free PDF SCR - Sustainability and Climate Risk Pass-Sure Reliable Exam Answers
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GARP Sustainability and Climate Risk Sample Questions (Q55-Q60):
NEW QUESTION # 55
A European bank considers investing in an offshore wind farm project. A bank ESG analyst assists in the origination and execution of green and sustainable finance transactions to finance the project. The analyst recommends a loan to finance the project by gathering related materials on sustainability-linked loans (SLLs), green loans, and corresponding market trends.
Which of the following loans is the analyst likely to recommend?
- A. Green loan because it offers greater flexibility of use than SLLs as green loans do not have loan usage reporting requirements.
- B. SLL because SLL issuance is highly concentrated in renewable energy projects and the power generation sector.
- C. Green loan because in contrast to SLLs, green loans are rapidly being adopted by a variety of sectors and tied to numerous KPIs.
- D. SLL because the total volume of SLLs exceeded that of green loans over the past 5 years.
Answer: D
NEW QUESTION # 56
A product manager at a regional bank analyzes customer feedback and sustainability trends to enhance bank offerings. After completing the review, the manager recommends a new consumer-facing product to attract sustainability-conscious customers. Which product does the manager most likely recommend?
- A. Sustainable credit cards with rewards for purchase of eco-certified products
- B. Green loans to support general-purpose financing secured from sustainable sources
- C. Green car loans designed to finance modern EVs
- D. SLLs to finance properties in areas prone to physical climate risk
Answer: C
NEW QUESTION # 57
An alliance of electricity power producers examines a proposed cap-and-trade regulation that would affect most members. The alliance lobbies lawmakers to strengthen banking and borrowing provisions in the proposed regulation, allowing increased flexibility for the sector to comply with emissions limits.
What component of climate risk is the alliance directly attempting to influence?
- A. Vulnerability
- B. Drivers
- C. Hazards
- D. Exposure
Answer: A
NEW QUESTION # 58
In response to a survey showing consumers consider sustainability a key factor in purchasing decisions, a group of cosmetics companies announce a collaboration to develop an environmental impact assessment and sustainability framework for cosmetics products. The framework enables customers to evaluate the environmental impact of products they purchase. The framework draft includes definitions of climate, green, and sustainable finance.
Which of the following definitions is appropriate for the proposed framework?
- A. Sustainable finance refers to public sector funding of projects relating to ESG and sustainable development.
- B. Climate finance is a subset of green finance and broadly refers to any financial transaction that considers climate issues.
- C. Green finance refers to sustainable finance focused on environmental risks and opportunities.
- D. Green finance refers exclusively to financial flows relating to climate change such as mitigation or adaptation.
Answer: C
NEW QUESTION # 59
After conducting a comprehensive climate risk assessment of company operations, a climate risk consultant hired by a large North American apparel manufacturer identifies climate change risks. The consultant highlights wildfires which are enhanced by occasional drought, as a high risk to company operations. What type of climate risk enhances wildfire risk?
- A. Systemic
- B. Supply chain
- C. Acute physical
- D. Transition
Answer: C
NEW QUESTION # 60
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