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GARP SCR Certification Exam is aimed at professionals who are involved in developing and implementing risk management strategies in the financial, corporate or public sectors. SCR exam focuses on the key factors that pose risks to the sustainability of businesses, including climate change, resource depletion, human rights, corporate social responsibility and ESG investing. Through the exam, GARP aims to motivate and empower risk professionals to take an active role in meeting these sustainability challenges.
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The SCR Exam covers a wide range of topics, including climate science and impacts, regulatory frameworks, carbon pricing, sustainability reporting and disclosure, and sustainable finance. SCR exam is structured in two parts, with the first part focusing on the foundational knowledge of sustainability and climate risk, and the second part focusing on the practical application of this knowledge in risk management practices. Successful completion of the SCR Exam demonstrates a professional's ability to assess and manage sustainability and climate-related risks, which is increasingly important as investors and stakeholders demand greater transparency and accountability on ESG issues.
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The Global Association of Risk Professionals (GARP) is an industry-leading non-profit organization dedicated to advancing the risk management profession. With a focus on sustainability and climate risk, GARP has recently launched a new certification program known as the GARP SCR (Sustainability and Climate Risk) Certification Exam. Sustainability and Climate Risk certification aims to provide finance professionals with the knowledge and skills necessary to effectively manage sustainability and climate risks in their organizations.
GARP SCR Exam is an essential certification for professionals who work in the financial industry, including risk managers, portfolio managers, asset managers, investment bankers, and regulators. The program provides a comprehensive understanding of sustainability and climate risk management, which is critical for making informed investment decisions and managing financial risk in a changing climate.
GARP SCR Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Climate Risk Fundamentals | 15-20% | - Climate Science Basics - Climate Risk Concepts and Taxonomy - Physical Risk vs. Transition Risk - Climate Change Drivers and Scenarios |
| Regulatory Landscape and Disclosure | 20-25% | - SEC Climate Disclosure Rules - ISSB Standards - ESMA and EU Taxonomy - Regulatory Reporting Requirements - Basel Climate Risk Frameworks - TCFD Framework and Recommendations |
| Climate Risk Management Strategies | 15-20% | - Engagement and Stewardship - Portfolio Construction and Rebalancing - Hedging Strategies - Risk Mitigation and Adaptation |
| Climate Risk Assessment Methodologies | 20-25% | - Probability and Impact Assessment - Value-at-Risk (VaR) and Climate VaR - Data Requirements and Quality - Scenario Analysis and Stress Testing - Portfolio Climate Risk Exposure |
| Sustainable Finance and Investment | 15-20% | - ESG Integration Principles - Green Finance Instruments - Net Zero Commitments - Sustainable Portfolio Construction - Impact Investing |





