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GARP Certification Sustainability and Climate Risk

Sustainability and Climate Risk

Last Update Jul 29, 2026
Total Questions : 118

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Questions 2

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?

Options:

A.  

Renewable energy costs fall to USD 0.10 per megawatt hour

B.  

The cost of battery packs falls below USD 0.50 per kilowatt hour

C.  

Renewable energy costs fall to USD 35.00 per megawatt hour

D.  

The cost of battery packs falls below USD 100.00 per kilowatt hour

Discussion 0
Questions 3

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?

Options:

A.  

Green/low carbon public procurement

B.  

Renewable portfolio standard

C.  

Emission trading scheme

D.  

Carbon tax

Discussion 0
Questions 4

A retail company operates internationally, and increasingly incurs scrutiny for environmental and social impacts. In response, the company adopts the SDGs. The company sustainability director begins this process by linking the SDGs to material concerns for the company.

Which strategy should the director suggest the company take to directly address one of the SDGs?

Options:

A.  

Disclose ESG factors to investors and stakeholders.

B.  

Maximize profits from green forest bonds.

C.  

Promote equitable access to water for surrounding communities.

D.  

Ensure the company follows through on stated CSR commitments.

Discussion 0
Questions 5

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?

Options:

A.  

Green loans outperform all other sustainable and traditional loan types.

B.  

Green loans are primarily issued in the clean transport and clean energy sectors.

C.  

Green loans are riskier for larger banks but less risky for smaller banks.

D.  

Green loans are mostly concentrated in the real estate sector.

Discussion 0
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