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| Section | Weight | Objectives |
|---|
| Topic 1: Sustainability | 12.5% | - UN Sustainable Development Goals - Definitions: sustainability, ESG, climate risk - Sustainability in finance and business
|
| Topic 2: Sustainability and Climate Policy, Culture, and Governance | 18.75% | - Organizational culture and strategy alignment - Corporate governance and board oversight - Global and regional regulatory frameworks
|
| Topic 3: Climate Change Risk | 12.5% | - Risk identification and classification - Physical risk impacts - Transition risk drivers
|
| Topic 4: Climate Models and Scenario Analysis | 12.5% | - Scenario design and assumptions - Using results for decision-making - Modeling approaches and limitations
|
| Topic 5: Net Zero, Climate and Nature Risk, Transition Planning | | - Nature-related risks and biodiversity - Transition planning and carbon reporting - Net zero targets and pathways
|
| Topic 6: Foundations of Climate Change | 12.5% | - Climate science basics and evidence - Global climate frameworks and agreements - Physical and transition risks
|
| Topic 7: Green and Sustainable Finance: Markets and Instruments | 12.5% | - Green bonds, sustainability-linked instruments - Sustainable investment strategies - Market standards and verification
|
| Topic 8: Climate Risk Measurement and Management | 18.75% | - Risk assessment methodologies - Integration into risk management frameworks - Metrics, indicators, and disclosure
|
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GARP Sustainability and Climate Risk Sample Questions (Q105-Q110):
NEW QUESTION # 105
A credit loan officer at a commercial bank reviews a loan application from a company engaged in coal-fired power generation. The loan officer examines transition risks associated with the company's business strategy.
What policy risk driver should the loan officer identify?
- A. Prices of solar photovoltaic panels have declined since 2015.
- B. A government proposes legislation to mandate closure of all coal-fired power plants by 2035.
- C. Lending to a coal-fired power plant will hurt the bank's public image.
- D. Activists and advocacy organizations increasingly file lawsuits against fossil fuel-based power companies.
Answer: B
NEW QUESTION # 106
A timber products company in the southeastern US plants, manages, and harvests a species of trees with a 30- year growth cycle. Prior to a planting cycle, the risk management team measures company exposure to stranded asset risk. Which of the following will the team most likely use to measure stranded asset exposure risk to the company?
- A. Projected quality of timber products at forest maturity
- B. Short-term consumer preference shifts toward alternative products
- C. Stringency of carbon regulations in timber farm locations
- D. Timeframe before timber assets are written off
Answer: C
NEW QUESTION # 107
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. SLLs to finance properties in areas prone to physical climate risk
- B. Green car loans designed to finance modern EVs
- C. Green loans to support general-purpose financing secured from sustainable sources
- D. Sustainable credit cards with rewards for purchase of eco-certified products
Answer: B
NEW QUESTION # 108
An industry association in Germany surveys members on business alignment with nationally determined contributions (NDCs). The association members express concern about potential cascading legal repercussions or penalties if governments do not conform to Paris Agreement pledges. An attorney at the association researches this issue and sends a memo to members.
The memo should state the Paris Agreement legally obliges signatories to take what action?
- A. Report on NDC progress every 5 years.
- B. Revise NDC targets annually.
- C. Penalize industries exceeding NDC emissions thresholds.
- D. Provide financing to help developing countries achieve NDC goals.
Answer: A
NEW QUESTION # 109
T he sustainability team at a Central European agricultural firm identifies nature-related risks threatening agricultural productivity and supply chain resilience. Declining yields are linked to environmental degradation and biodiversity loss. To avoid biodiversity loss, which of the following actions will the team most likely recommend?
- A. Support sustainable practices to restore natural habitats and strengthen biodiversity.
- B. Choose a non-native crop species to reduce ecosystem dependence and improve biodiversity.
- C. Implement soil management programs to improve land productivity.
- D. Develop water-saving technologies to mitigate resource stress.
Answer: A
NEW QUESTION # 110
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