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GARP SCR Exam
Sustainability and Climate Risk (Page 2 )

Updated On: 1-Feb-2026
Page 2 of 17
PDF with 137 Questions

A climate scientist develops a presentation on modern climate change for a group of policymakers.
What observation does the scientist include in the presentation that provides evidence of human attribution to current climate change?

  1. Atmospheric CO2 with isotopes consistent with fossil fuel emissions have increased since the mid-20th century.
  2. Glacial ice records indicate atmospheric CO2 increased by 135 parts per thousand since the Industrial Revolution.
  3. In the past 200 years, CO2 is responsible for most negative radiative forcing.
  4. In the past 100 years, the atmospheric lifetime of CO2 attributed to energy use increased.

Answer(s): A



A global electronics manufacturer experiences severe flooding in one of its key locations. Company senior management will mitigate supply chain risk and adhere to environmental standards by issuing a bond. The bond proceeds will simultaneously address floodwater contaminated by industrial chemicals and assist communities experiencing deterioration of health conditions due to waterborne diseases.
Which bond is the company likely to issue?

  1. Green bond
  2. Sustainability-linked bond
  3. Social bond
  4. Sustainability bond

Answer(s): A



An international agrochemical company performs climate scenario analysis to include in TCFD disclosures. The risk department hires an analyst with experience in physical risk scenario analysis.
What scenario analysis action will the analyst most likely recommend to evaluate physical climate risk?

  1. Use a sector benchmark to understand the company wildfire risk for facility operations.
  2. Use sectoral emissions trajectories up to 2050 to predict exposure to flooding events over the next 30 years.
  3. Use historical data on hazard occurrences to identify potential supply chain vulnerabilities from changes in hurricane frequencies.
  4. Use annual instead of decadal climate precipitation models to achieve the most accuracy in climate risk prediction.

Answer(s): C



A global investment bank expands its risk department to include climate risk assessment. Senior management directs the department to implement approaches for evaluating how climate change affects traditional risk types. A risk manager recommends risk metrics for key risk types that measure physical and transition risk impacts.
To measure credit risk, which metric should the analyst recommend?

  1. Level of company preparedness
  2. Bid-ask spread
  3. Loan-to-deposit ratio
  4. Loss given default

Answer(s): A



After launching new large-scale sites for engine testing, a global automaker prepares a GHG inventory report according to the GHG Protocol. An analyst on the sustainability team gathers data for the assessment. The analyst identifies emissions from production processes, previously deemed irrelevant at the corporate level, now constitute over 25% of company aggregated GHG emissions across plant sites.
Which GHG Protocol principle did the company analyst follow?

  1. Consistency
  2. Accuracy
  3. Transparency
  4. Completeness

Answer(s): D



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