SCR Exam Training Practice Tests (GARP Sustainability and Climate Risk)]

Question 1

An investment bank of a southern African country appoints a task force to assess current climate risk practices. The task force examines the potential of climate change to cause systemic risk at the macro level to inform climate investment strategies. The task force evaluates potential disruption scenarios to the financial system due to climate risk. Which risk type will most likely have the lowest potential to cause systemic risk to the financial system of the country?

A. Liquidity B. Market C. Underwriting D. Operational

Correct Answer: D

Question 2

A public policy think tank releases a report on global decarbonization pathways. The report describes the relative contribution of each GHG to modern climate change and recommends focusing global efforts on CO2 reduction.
Why would the think tank make this recommendation?

A. CO2 is responsible for approximately a 1.00 w/m2 increase in radiative forcing. B. CO2 atmospheric concentrations have increased by approximately 1 part per billion. C. CO2 atmospheric concentrations have increased by approximately 100 parts per billion. D. CO2 is responsible for approximately a 2.25 w/m2 increase in radiative forcing.

Correct Answer: D

Question 3

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?

A. Use historic weather data to improve route resilience. B. Incorporate physical risk impacts from extreme weather events into operational models. C. Integrate detailed data on regional hazards, exposure, and vulnerability. D. Apply a shadow carbon tax in cost assessment models.

Correct Answer: D

Question 4

To achieve emissions reduction goals, a South American government considers policies other than carbon pricing to target carbon-intensive industries more effectively. The government intends to promote renewable power generation by implementing subsidies.
Which action should the government take to support this subsidy policy?

A. Launch renewable portfolio standards B. Create fuel efficiency standards C. Establish feed-in tariffs D. Mandate CO2 emissions standards

Correct Answer: C

Question 5

To inform climate policy in a European country, a coalition of government scientists prepares a report on future climate conditions. Within the report, the scientists summarize how positive feedback loops accelerate the rate of climate change. Which feedback loop will the scientists most likely include in the coalition report?

A. Rising sea levels increase the total mass of global oceans, leading to increased oceanic carbon absorption and growing calcification for sea life. B. Melting sea ice increases solar energy reflection, which intensifies the albedo in polar regions and leads to more global warming. C. Thawing permafrost near polar regions absorbs CO2 which slows global warming and increases thawing. D. Warmer air temperatures can hold higher amounts of water vapor, leading to higher temperatures and increased water vapor.

Correct Answer: D

Question 6

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?

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

Correct Answer: B

Question 7

A natural gas production company makes a 2040 net-zero commitment. Before publicly announcing the commitment, the company sustainability team verifies the credibility and transparency of the company net- zero commitment to minimize any greenwashing claims. What action will the team most likely take to strengthen the credibility of the company net-zero commitment?

A. Offset future GHG emissions that cannot be avoided with carbon credits. B. Utilize existing internal audit processes in the absence of external audit verification providers. C. Develop interim targets and implement third-party verification aligned with established standards. D. Develop and promote a comprehensive media campaign announcing the company net-zero commitment.

Correct Answer: C

Question 8

Leaders of a small island nation implement a sector-specific carbon reduction policy to address climate change. The policy includes a commitment to reduce country emissions through NDCs under the Paris Agreement. Which of the following emission reduction policies is the nation most likely implementing?

A. Carbon tax B. Renewable portfolio standard C. Climate risk disclosure D. Cap-and-trade system

Correct Answer: A

GARP Sustainability and Climate Risk - SCR Exam Practice Test