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Free GARP SCR Practice Exam with Questions & Answers | Set: 3

Questions 21

A West African energy company plans to expand beyond regional operations to markets throughout the continent. Executive leadership determines integrating SDGs into operations can help the company appeal to new consumers and political decision makers. The company CSO develops a strategy to promote the SDGs to external stakeholders.

What should the strategy include?

Options:
A.

Calculation of the economic benefits of an SDG before applying a strategy.

B.

Disclosure of the SDG alignment to investors to allow comparability among peers.

C.

Quantification of each SDG target to measure progress.

D.

Prioritization of SDGs that incorporate nature-based solutions.

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Questions 22

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?

Options:
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.

Questions 23

The CRO of an automobile manufacturer in North America prepares a keynote address on risks in the auto sector over the next decade. The CRO highlights the primary technology risks facing its line of internal combustion engine (ICE) vehicles.

At approximately what point will many manufacturers of ICE vehicles experience a significant technology risk?

Options:
A.

Renewable energy costs fall to USD 0.10 per megawatt hour

B.

The cost of battery packs falls below USD 0.50 per kilowatt hour

C.

Renewable energy costs fall to USD 35.00 per megawatt hour

D.

The cost of battery packs falls below USD 100.00 per kilowatt hour

Questions 24

A prominent institutional investor forms a committee to support global investments to achieve net zero GHG emissions by 2050. To inform this investment strategy, the committee relies on the IEA Net-Zero Scenario.

How should the committee proceed with investments to align with IEA milestones?

Options:
A.

Invest in electric vehicles sufficiently to help make electric vehicles 30% of global vehicle sales by 2030.

B.

Divest nuclear energy assets sufficiently to increase solar and wind energy shares of global energy production to 50% by 2050.

C.

Invest in energy infrastructure sufficiently to ensure all new buildings are “zero-carbon-ready” by 2050.

D.

Divest coal assets sufficiently to support a phase-out of all coal plants in advanced economies by 2030.

Questions 25

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?

Options:
A.

Transition and physical climate scenarios assess historical vulnerabilities to climate change.

B.

Physical scenarios portray a pathway of emissions to deliver a given limit to warming.

C.

Transition and physical risk considerations are complementary in scenario analysis.

D.

Physical scenarios include material consequences of new climate policies on short-term energy supplies.

Questions 26

A climate scientist is invited to a morning news program to discuss human influence on Earth’s climate. Prior to the program, a producer asserts climate change is a natural process, citing Earth’s historical climate shifts. What example does the scientist most likely provide to highlight human influence on climate?

Options:
A.

The close link between CO2 concentrations and ice age cycles

B.

Increased solar output since the 19th century

C.

Global temperature anomalies caused by El Niño in the 20th century

D.

An irregular orbit around the Sun since the last ice age

Questions 27

A climate analyst at a research institution analyzes climate risk for various companies. The analyst examines transmission channels of climate risk as part of the risk identification process.

Which of the following examples can the analyst use to describe an operational risk transmission channel?

Options:
A.

A damaging hurricane leads to a run on credit as affected communities need cash to fund recovery efforts.

B.

Following a high carbon tax, a company strands high-emissions assets.

C.

High commodity prices boost revenues for a mining company that extracts lithium.

D.

Flooding damages an information technology company data center.

Questions 28

A technology company announces a goal of increasing recycling programs by 30% and reducing company carbon emissions by 50% by 2040. A climate risk analyst at the company develops a sustainability framework and identifies ways to measure company-level transition and physical risks.

Which of the following should the analyst use to measure company-level transition risk?

Options:
A.

Corporate alignment scores

B.

Carbon intensity calculations

C.

ESG score comparisons

D.

Facility-level location

Questions 29

The sustainability team at a global airline company enhances long-term operational efficiency and resilience. The team reviews potential strategies using scenario analysis to assess climate transition risks and optimize logistics. How can the airline company use scenario analysis to assess transition risk?

Options:
A.

Apply a shadow carbon tax in cost assessment models.

B.

Incorporate physical risk impacts from extreme weather events into operational models.

C.

Use historic weather data to improve route resilience.

D.

Integrate detailed data on regional hazards, exposure, and vulnerability.

Questions 30

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?

Options:
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.

Exam Code: SCR
Certification Provider: GARP
Exam Name: Sustainability and Climate Risk
Last Update: Apr 5, 2026
Questions: 118

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