Pass the GARP Certification SCR Questions and answers with ExamsMirror

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?

The Commissioners of Insurance for a state in the western United States recommends all insurers now report annually on climate change, using TCFD guidance.

Which of the following sectors do the commissioners correctly identify as encompassing the full scope of the TCFD recommendations?

A federal regulator analyzes how the increasing frequency of natural disasters may impact the banking sector. The regulator reviews and evaluates the potential for widespread climate events to simultaneously affect multiple financial institutions and drive cascading economic disruptions. What risk type is the regulator most likely evaluating?

A timber products company in the southeastern US plants, manages, and harvests a species of trees with a 30-year growth cycle. Prior to a planting cycle, the risk management team measures company exposure to stranded asset risk. Which of the following will the team most likely use to measure stranded asset exposure risk to the company?

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 multi-industry consortium convenes risk managers from across the globe to discuss climate impacts on global trade and economic growth. A climate modeler leads a discussion on macro-level physical changes in the Earth’s atmosphere and highlights two climatic trends that demonstrate an inverse relationship in recent decades.

What two trends does the modeler highlight?

A diversified industrial company embarks on a climate transition strategy to invest in a more fuel-efficient airline fleet. To finance the investment, the CSO analyzes sustainable finance instruments and recommends instruments most suitable to issue.

Which of the following financial instruments should the CSO recommend and why?

A financial services firm in South America evaluates climate-related financial risks and opportunities to align with ISSB reporting standards. The firm initiates a scenario analysis to determine potential impacts on its investment portfolio. To enable a thorough assessment, which climate scenario input parameter should the firm prioritize in the analysis?

An international development bank publishes an annual index that evaluates climate risk at a regional level. The index consists of several economic, policy, and physical risk components. For the upcoming index publication, the bank identifies new components that reflect the ability of companies and local infrastructure to incorporate clean and renewable energy sources into electric grids and transport systems. Which of the following risk components will the bank most likely identify?

To comply with publicly stated climate goals, a country dependent on fossil fuel production begins phasing out oil production facilities. Climate activists largely celebrate this commitment, while expressing concern for a just transition. Which of the following just transition programs will the activists most likely support?