Pass the GARP Certification SCR Questions and answers with Dumpstech

After conducting a comprehensive climate risk assessment of company operations, a climate risk consultant hired by a large North American apparel manufacturer identifies climate change risks. The consultant highlights wildfires which are enhanced by occasional drought, as a high risk to company operations. What type of climate risk enhances wildfire risk?

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 global investment bank expands its risk department to include climate risk assessment. Senior management directs the department to implement approaches for evaluating how climate change affects traditional risk types. A risk manager recommends risk metrics for key risk types that measure physical and transition risk impacts.

To measure credit risk, which metric should the analyst recommend?

A global electronics manufacturer experiences severe flooding in one of its key locations. Company senior management will mitigate supply chain risk and adhere to environmental standards by issuing a bond. The bond proceeds will simultaneously address floodwater contaminated by industrial chemicals and assist communities experiencing deterioration of health conditions due to waterborne diseases.

Which bond is the company likely to issue?

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?

Organizers of an upcoming UN Climate Change Conference prepare a document highlighting successes and failures of climate accords over the last 20 years.

The document lists what success from the 2009 Copenhagen Accord?

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 Central American country signs the Paris Agreement to align actions and policies to keep global temperature rise below 1.5°C. The country’s environmental agency develops a nationally determined contribution plan that includes domestic, economy-wide, and sector-specific policies. The power generation sector is most comprehensively covered by the plan.

Which policy included in the plan targets the power generation sector?

Senior management of a sportswear manufacturer will issue a bond to optimize company capital structure, while providing investors with an opportunity to contribute to positive transformation of the fashion industry. Management prefers a bond with a high rate of issuance, and the company sustainability team researches various green and sustainable finance instruments and issuance information over the past 5 years. The team recommends a bond that globally posted the highest growth in issuance between 2019 and 2020.

Which bond did the team recommend?

A sustainability analyst at a global commercial bank researches trends surrounding the green loan market in China to develop a new business strategy. The analyst finds green loans are gaining popularity in various sectors due to environmental and financial benefits. If the analyst recommends the addition of green loans to the business strategy, what China market trend most likely supports this decision?