GARP Sustainability and Climate Risk - SCR FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

A major hurricane extensively damages the electrical infrastructure of a utility company. To improve the utility's risk management, the risk director prepares a strategy plan and incorporates climate risk considerations within the existing risk management framework.
Which recommendation should the director make to incorporate climate risk into the framework's risk identification component?

A. Evaluate the vulnerability and adaptive capacity of facilities using data gathered on the scope of climate risks. B. Flag any substantial changes in the utility's external environment to trigger a modification of the risk management process. C. Examine the transmission channels of climate risk drivers into financial risk to determine which risks are likely to materialize for the utility. D. Rate risks on impact and level of control to focus on risks with the most severe impact but over which the utility has the most control to improve outcomes.

Discussion 0

Correct Answer: C Vote an answer

Question 2

An EU vehicle braking system manufacturer implements a new sustainability framework for SLBs to finance projects with environmental and social benefits. The company sustainability team prepares a new SLB and submits the bond to an external reviewer for assessment. The bond contains four KPIs:
1. Scope 1 CO2 emissions
2. Supplier engagement on GHG emission reduction
3. Percentage of renewable energy used
4. Percentage of women in managerial roles
The bond benchmark year is 2022 and the bond will mature in 2030 Which of the following SPTs did the reviewer find aligns with the core components of SLB Principles?

A. Engage multiple suppliers to expand commitment to emission reduction targets by 30% by 2030. B. Increase renewable energy use to 20% by 2035 and to 50% by 2050. C. Reduce emissions from purchased raw materials by 60% by 2030. D. Increase women representation in managerial positions to 33% by 2025 and to 50% by 2030.

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Correct Answer: D Vote an answer

Question 3

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?

A. A national scholarship program to retrain displaced workers from carbon-intensive industries B. Subsidies provided to low-income residents who use carbon-intensive fuels C. Increased funding for researchers examining alternatives to carbon-intensive fuel sources D. An annual tax rebate for workers transitioning to jobs outside of carbon-intensive industries

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Correct Answer: A Vote an answer

Question 4

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. Require banks and insurers include all material exposures relating to financial risks from climate change under capital adequacy and solvency assessments. B. Integrate climate-related risks into bank monetary policy before attempting to integrate climate into other areas of bank operations. C. Adopt a policy that requires firms to submit climate risk disclosures that precisely follow NGFS guidelines. D. 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.

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Correct Answer: A Vote an answer

Question 5

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. Reporting B. Use of proceeds C. Management of proceeds D. Process for project evaluation and selection

Discussion 0

Correct Answer: D Vote an answer

Question 6

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

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Correct Answer: B Vote an answer

Question 7

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. Radiative forcing and Arctic sea ice extent B. Atmospheric aerosol levels and forced variability events C. Norther and Southern hemisphere temperatures D. Atmospheric water vapor and global temperature

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Correct Answer: A Vote an answer

Question 8

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. SLL because SLL issuance is highly concentrated in renewable energy projects and the power generation sector. B. SLL because the total volume of SLLs exceeded that of green loans over the past 5 years. C. Green loan because it offers greater flexibility of use than SLLs as green loans do not have loan usage reporting requirements. D. Green loan because in contrast to SLLs, green loans are rapidly being adopted by a variety of sectors and tied to numerous KPIs.

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Correct Answer: B Vote an answer