GARP SCR Exam Questions

Question 6 of 137

To improve sustainability, a railroad and transportation services company will revitalize its rail network by installing an operating system that reduces idle time. A reduction in idle time will decrease GHG emissions. To finance this plan, the company will issue green bonds beginning in 2024. The company sustainability director develops sustainability objectives and eligibility criteria to communicate to investors.
The director is fulfilling which core component of the Green Bond Principles?

A.

Process for project evaluation and selection

B.

Reporting

C.

Management of proceeds

D.

Use of proceeds

Question 7 of 137

A large insurance company in South America expands use of climate scenario analysis. The company used RCPs in previous scenario analyses but now hires an actuary with climate expertise to incorporate SSPs in this process.
How can the actuary advise the insurance company use SSPs going forward?

A.

Demonstrate how SSP and RCP trajectories typically show contradictory emissions trend trajectories.

B.

Combine SSPs with different RCPs to assess climate policy options.

C.

Eventually replace SSPs with RCPs by integrating underlying data assumptions.

D.

Use SSPs to provide alternative emissions pathways to RCPs.

Question 8 of 137

A climate risk consultant advises an Eastern European central bank. In response to regulatory changes, the bank will incorporate climate-related risks into bank policies. The consultant writes a summary on how central banks incorporated climate-related risks into policies. The summary highlights the Bank of England (BoE) example to demonstrate how the BoE integrated climate-related risks within the bank supervisory scope.
Which of the following BoE practices will the consultant recommend?

A.

Integrate climate-related risks into bank monetary policy before attempting to integrate climate into other areas of bank operations.

B.

Obligate firms to allocate responsibility for climate-related risks using a bottom-up approach where the risk team assesses climate risks while the board of directors approves or denies.

C.

Require banks and insurers include all material exposures relating to financial risks from climate change under capital adequacy and solvency assessments.

D.

Adopt a policy that requires firms to submit climate risk disclosures that precisely follow NGFS guidelines.

Question 9 of 137

A sustainability analyst for a global food and beverage company tracks ESG metrics to report to investors. The analyst meets with company leaders of different business units to explain criteria and indicator types for each ESG component.
To address each component, which metrics will the analyst socialize with company leaders?

A.

Carbon dioxide emissions; labor conditions of agricultural workers; board diversity

B.

Environmental health and safety record; adherence to code of ethics; risk management protocols

C.

Water use efficiency; employee retention and satisfaction; community engagement

D.

Energy use; GHG intensity reduction; executive leadership compensation

Question 10 of 137

In response to policy and technology changes, a cement manufacturer looks for new opportunities to raise profits by reducing GHG emissions. Because the cement industry accounts for a considerable percentage of global emissions, the manufacturer joins a coalition of company peers. The coalition lobbies country governments to adhere to the Paris Agreement nationally determined contributions (NDCs).
Which of the following actions does the coalition recommend?

A.

Aligned the first round of NDCs with a 2°C warming limit, followed by a second round of a 1.5°C limit.

B.

Set 2019-2022 NDCs at a smaller scale to comply with the “ratchet” mechanism.

C.

Tighten NDCs and report NDC progress every 5 years at COP meetings.

D.

Revise NDC targets annually and submit to the UN for review and approval.