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The Global Association of Risk Professionals (GARP) is a leading professional association for risk management practitioners, with a strong focus on environmental, social, and governance (ESG) issues. In response to the growing importance of sustainability and climate risk in the financial industry, GARP has developed the SCR (Sustainability and Climate Risk) Certification Exam. SCR exam is designed to help risk professionals enhance their knowledge and skills in managing sustainability and climate risks.
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The SCR exam covers a wide range of topics related to sustainability and climate risk, including environmental, social, and governance (ESG) factors, sustainable investing, climate risk assessment and management, as well as regulatory and reporting frameworks. SCR Exam is designed to ensure that professionals are equipped with the tools to identify, measure, manage, and report on sustainability and climate risks in a transparent and effective manner.
GARP Sustainability and Climate Risk Sample Questions (Q35-Q40):
NEW QUESTION # 35
A team of climate risk specialists at a global non-profit research organization prepares a study on climate policy and achieving national climate change mitigation targets. The study focuses on actors, non-state and subnational (NSA) participants, and actions that can be taken to impact climate policy.
How should the team describe effective climate policy and climate change mitigation targets?
- A. A hindrance to the effectiveness of regional policies is that ambitious climate policy cannot be made without the support of the federal government.
- B. Subnational commitments and actors can function as networks or advocacy efforts to combat climate change.
- C. There has been an increasing trend in diverging public and private sector coalitions and consequent climate actions.
- D. Full implementation of NSA commitments is expected to lower GHG emissions by close to 1.5%-2.0% more by 2030 than national pledges.
Answer: B
NEW QUESTION # 36
A climate resilience consultant prepares an overview for a regional agency client. The overview summarizes climate policies that significantly reduce emissions. The client expresses a strong preference for a policy that limits emissions and offers flexibility in participant permits.
What policy should the consultant recommend to the client?
- A. Carbon tax
- B. Feed-in tariffs
- C. Fuel efficiency standards
- D. Cap-and-trade scheme
Answer: D
NEW QUESTION # 37
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 in contrast to SLLs, green loans are rapidly being adopted by a variety of sectors and tied to numerous KPIs.
- B. SLL because the total volume of SLLs exceeded that of green loans over the past 5 years.
- C. Green loan because it offers greater flexibility of use than SLLs as green loans do not have loan usage reporting requirements.
- D. SLL because SLL issuance is highly concentrated in renewable energy projects and the power generation sector.
Answer: B
NEW QUESTION # 38
Which of the following greenhouse gases (GHGs) has the longest lifetime in the atmosphere?
- A. Fluorinated gas
- B. Methane
- C. Carbon dioxide
Answer: A
NEW QUESTION # 39
The national meteorological agency of a small African nation forms a team to identify and assess extreme climate events in the region. The team leader introduces extreme attribution science along with data and techniques used to connect climate change to extreme events.
To attribute extreme events to climate change, what information will be most useful for the team to collect?
- A. Cross-hatching that indicates climate model agreement
- B. Community exposure to increased flooding events
- C. Future projections of global emissions
- D. Statistical analysis of historic drought occurrences
Answer: D
NEW QUESTION # 40
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