SCR GARP Sustainability and Climate Risk Free Practice Exam Questions (2026 Updated)
Prepare effectively for your GARP SCR Sustainability and Climate Risk certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2026, ensuring you have the most current resources to build confidence and succeed on your first attempt.
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?
An international hotel chain reviews progress on sustainability goals in preparation for an Earth Day marketing campaign. A sustainability director suggests the hotel highlight how its energy and food sustainability initiatives align with UN SDG targets.
Which of the following correctly describes an SDG target that the hotel could align with?
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?
Which of the following greenhouse gases (GHGs) has the longest lifetime in the atmosphere?
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 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?
An oil and gas company aligns strategy and resiliency planning with long-term global climate goals. After conducting a feasibility study, a company climate risk analyst recommends incorporating IEA scenarios into company strategy development. How might the use of IEA reference scenarios improve company strategy planning?
An international report on SDG progress identifies a large south Asian nation as not on track to meet most SDGs. Specifically, the nation’s reduction of infant mortality and adoption of clean energy lag behind regional peers. In response, a government environmental minister creates a memorandum outlining steps the nation can take to advance the 2030 Agenda goals. The office distributes the memorandum to other government agencies.
How will the memorandum describe the 2030 Agenda goals?
An industry association in Germany surveys members on business alignment with nationally determined contributions (NDCs). The association members express concern about potential cascading legal repercussions or penalties if governments do not conform to Paris Agreement pledges. An attorney at the association researches this issue and sends a memo to members.
The memo should state the Paris Agreement legally obliges signatories to take what action?
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 global cosmetics company surveys consumers. The survey reveals close to 75% of consumers indicate sustainability is an important issue and are willing to change shopping habits to reduce environmental impact. The company responds by establishing a sustainability framework. As part of the process to implement this framework, a company sustainability analyst identifies sustainable investment and disclosure practices.
Which recommendation will the analyst likely make to implement a company sustainability framework?
A telecommunications corporation issues a green bond to finance energy efficiency improvements for the company’s office space worldwide. The company’s risk management department commissions an independent advisory assessment of the bond to check bond alignment with components of the Green Bond Principles.
What action does the corporation take to align the bond with the “process for project evaluation and selection” component of the Green Bond Principles?
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?
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?
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?
