The Comprehensive Guide to the GARP SCR Syllabus

Overview of the GARP SCR Syllabus

The GARP SCR syllabus provides a holistic overview of the skills and knowledge required to tackle sustainability and climate-related risks. It integrates critical concepts in climate risk measurement, green and sustainable finance, scenario analysis, and risk management. Candidates will gain a comprehensive understanding of:

• Foundations of climate change

• Climate models and scenario analysis

• Managing sustainability and climate risks

• Policy culture and governance

• Financial risks linked to climate change

This certification is ideal for professionals in financial institutions, risk management, and investment decision-making, as well as those in corporate roles looking to expand their expertise in corporate disclosure and risk management.

The Value of Earning the GARP SCR Certification

Earning the SCR certificate provides global recognition as a professional capable of addressing the growing challenges of climate change and sustainability. It equips you to:

• Manage and mitigate climate risks effectively.

• Apply climate models and scenario analysis to identify financial risks.

• Drive sustainable practices and responsible investment within organizations.

• Gain an edge in a competitive job market driven by growing demand for climate risk expertise (see GARP SCR success stories here)

For further insights, read our article on How ESG Training Boosts Your Career.

Key Components of the GARP SCR Syllabus Explained

1. Sustainability and Climate Risk Concepts

The syllabus starts with foundational knowledge, including climate change, its drivers, and its implications for businesses and economies. Candidates will also explore:

• Climate-related risks and their connection to financial risks.

• The role of public policies, regulations, and sustainability standards.

• Key principles of sustainability and climate policy.

2. Climate Risk Measurement and Management

This section covers the tools and methodologies to measure and mitigate risks, including:

• Climate models: Understanding various modeling techniques.

• Scenario analysis: Developing frameworks to predict outcomes.

• Risk measurement and management: Identifying, quantifying, and addressing risks.

3. Case Studies in Climate Risk Management

The curriculum emphasizes practical applications through case studies, showcasing how organizations tackle real-world challenges in managing climate risks.

4. Policy, Culture, and Governance

This segment examines the intersection of policy frameworks, corporate actions, and governance in addressing sustainability. Candidates will gain insights into how governance structures impact risk management.

5. Green and Sustainable Finance

A deep dive into sustainable finance, including its role in fostering responsible investment and aligning financial strategies with climate-related goals.

Sustainability and Climate Risk Concepts

The GARP SCR syllabus provides candidates with a deep understanding of sustainability and climate risk concepts, laying the foundation for managing climate-related risks effectively. Here are the key areas covered:

1. Foundations of Climate Change

This section addresses the scientific, economic, and policy aspects of climate change, including:

• The causes and impacts of climate change on global markets and industries.

• The role of greenhouse gas emissions and mitigation strategies.

• The implications of climate change for businesses, governments, and society.

2. Climate-Related Risks

Candidates learn to identify and categorize climate risks, such as:

• Physical risks: The direct impact of extreme weather events on assets, supply chains, and operations.

• Transition risks: Risks arising from the shift to a low-carbon economy, including policy changes, market adjustments, and reputational factors.

• Financial risks linked to climate change, including impacts on credit, market, and operational risks.

3. Sustainability Standards and Climate Policy

The syllabus explores global and regional policies, including:

• International frameworks like the Paris Agreement.

• Sustainability standards such as IFRS sustainability disclosure standards.

• National and corporate approaches to managing climate-related risks and promoting sustainable finance.

4. Governance Frameworks and Corporate Actions

Understanding the role of governance in sustainability is a key focus, with insights into:

• The importance of policy culture and governance in shaping sustainability strategies.

• How companies can integrate climate risks into their governance structures.

• Case studies highlighting successful corporate actions for addressing climate risks.

5. Scenario Analysis and Climate Models

Candidates are introduced to tools and methodologies for analyzing potential climate outcomes, including:

• The application of climate models to predict risks and opportunities.

• Developing and using scenario analysis to assess financial and operational impacts under various climate conditions.

6. Green and Sustainable Finance

This component highlights how sustainable finance plays a role in addressing climate change, focusing on:

• The integration of ESG issues into investment and financial strategies.

• The development of green finance instruments and their role in promoting a low-carbon economy.

By mastering these sustainability and climate risk concepts, candidates gain the skills needed to anticipate and address the challenges of climate change in their professional roles.

For a deeper dive into the GARP SCR syllabus, visit our GARP SCR Certification Page.

Essential Skills Highlighted in the GARP SCR Curriculum

The SCR certification equips candidates with skills critical for navigating the sustainability and climate risk landscape, including:

• Climate policy analysis: Understanding global and regional policies.

• Risk management techniques: Identifying and mitigating climate risks.

• Scenario development: Anticipating risks using advanced modeling.

• Sustainability reporting: Aligning with global sustainability standards like the IFRS.

GARP SCR Exam Structure and Important Details

The SCR exam consists of 90 questions over four hours, testing candidates on their ability to apply knowledge from the syllabus. Key details include:

• Exam windows typically occur twice a year (March, October)

• Early registration is recommended to save costs and access study materials( See our Essential Guide here)

• The candidate portal provides access to essential resources like mock exams and case studies.