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| Section | Objectives |
|---|
| Climate Change Policy and Regulatory Landscape | - International agreements and frameworks
- 1. Net-zero commitments and transition pathways
- 2. Paris Agreement and COP process
- Regulatory and disclosure standards
- 1. ISSB and sustainability reporting standards
- 2. TCFD recommendations
|
| Foundations of Climate Change | - Climate science and physical processes
- 1. Climate system components and feedback loops
- 2. Greenhouse gas effect and global warming mechanisms
- Climate data and evidence
- 1. Climate indicators and measurement methods
- 2. Historical climate trends and projections
|
| Climate Finance and Investment | - Portfolio and investment implications
- 1. Climate risk in asset valuation
- 2. ESG integration in investment decisions
- Green finance instruments
- 1. Carbon markets and pricing mechanisms
- 2. Green bonds and sustainability-linked bonds
|
| Climate Risk Measurement and Management | - Types of climate risk
- 1. Transition risk (policy, technology, market)
- 2. Physical risk (acute and chronic)
- Risk assessment techniques
- 1. Scenario analysis and stress testing
- 2. Risk quantification approaches
|
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GARP Sustainability and Climate Risk Sample Questions (Q70-Q75):
NEW QUESTION # 70
An environmental agency for a southeast Asian nation increases funding to study historic climate change and its impacts. The agency funds a proposal for a scientific subject matter expert to conduct a large-scale study of the nation's tree rings.
What information will this study most likely reveal?
- A. Temperature anomalies up to 1°C
- B. Frequency of climate tipping points
- C. Frequency of global ice ages
- D. Temperature anomalies up to 10°C
Answer: A
NEW QUESTION # 71
To assess potential business implications of climate change, a large manufacturing company implements scenario analysis for the first time. The company hires a consultant to help incorporate climate-related considerations into a model of the company's potential business outcomes.
What useful scenario analysis information should the consultant make the company aware of?
- A. Physical scenarios include material consequences of new climate policies on short-term energy supplies.
- B. Physical scenarios portray a pathway of emissions to deliver a given limit to warming.
- C. Transition and physical climate scenarios assess historical vulnerabilities to climate change.
- D. Transition and physical risk considerations are complementary in scenario analysis.
Answer: D
NEW QUESTION # 72
A company reduces water usage and increases usage of more expensive resources after regulations become more stringent. This most likely impacts:
- A. provisions
- B. revenues
- C. operating expenditure
Answer: C
NEW QUESTION # 73
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 # 74
A coalition of African central banks reviews member bank prudential policies for alignment with climate- related financial risk mitigation. To shape the coalition's climate risk and business continuity planning objectives, coalition leaders review key risk metrics. Which of the following metrics will the coalition most likely use to evaluate operational risk due to climate change?
- A. Loss given default
- B. Carbon intensity
- C. Changes in insurance premiums
- D. Bank preparedness level
Answer: D
NEW QUESTION # 75
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