What's the CFA ESG and GARP SCR Pass Rate? A Comprehensive Guide

The Growing Importance of CFA ESG Certificate and GARP SCR Certifications

The financial landscape is undergoing a seismic shift as ESG factors and climate risks move to the forefront of investment and risk management strategies. Companies, investment professionals, and regulators are demanding greater accountability and transparency in ESG investing, and professionals with expertise in these areas are in high demand - ways to acquire that knowledge is by completing the CFA ESG or the GARP SCR exams.

Why the CFA ESG Investing Certificate Matters

The CFA ESG Investing Certification, offered by the CFA Institute, equips candidates with knowledge of ESG considerations, their integration into investment decision-making, and the role ESG factors play in financial performance. It’s especially relevant for asset managers, financial advisors, and sustainability-focused analysts.

Specifically, the CFA ESG Exam addresses concepts like the ESG market (a breakdown of all market participants and the history of responsible investing), deep dive into each of the three ESG factors (Environmental factors, Social factors and Governance factors), Engagement and Stewardship (how to address ESG issues with companies), ESG Analysis, Valuation and Integration (turning these ESG concepts into practice, try to value ESG expertise into financial metrics), ESG Integrated Portfolio Construction and Management (rolling up the company-level ESG knowledge into a portfolio), and finally Investment Mandates, Portfolio Analytics, and Client Reporting (how do institutional clients demand reporting on ESG factors for their investment mandates).

The CFA ESG book represents a very broad program that largely addresses every aspect of ESG Investing.

Why the GARP SCR Certificate Matters

The GARP SCR Certificate, provided by the Global Association of Risk Professionals, focuses on sustainability and climate-related risks. It’s particularly valuable for professionals in risk management, compliance, and corporate governance roles. It goes beyond ESG considerations to address climate change risk modeling, regulatory requirements, and climate risk mitigation strategies.

Taking a closer look, the GARP SCR certification has a more focused look on one aspect of the whole Environmental, Social and Governance world - namely, the "E". The entire curriculum is largely built around the threat of Climate Change and related the Climate risk challenges for financial markets.

The chapters include Foundations of Climate Change, Climate Science (takes a brief look at the science behind the climate change phenomenon), Policy, Regulations, and Governance (looks at the history of conventions, policies and norms to address climate risks), Climate Risk Measurement and Management (this chapter unpacks the difference in measuring 'transition risks' and 'physical risks' of climate change), Scenario Analysis and Stress Testing (this chapter looks at the financial risks in the context of portfolio analytics), Climate Risk Management at Financial Institutions (after the risk assessment has been done, the question is how to address it, particularly by the finance industry), Disclosures and Reporting (What are common ways to report on environmental risks in investment mandates), and lastly Case Studies (like how environmental factors can have impacts on supply chain management).

Both certifications address critical aspects of sustainable finance, making them indispensable for professionals looking to lead in the ESG and climate risk domains.

Challenges and Key Difficulty Areas of CFA ESG exam and GARP SCR Exam

1. Breadth of Topics

Both certifications cover extensive material. The CFA ESG exam focuses on the ESG expertise, ESG integrated portfolio construction in financial decision-making, and sustainable investing at large, while the GARP SCR exam dives deep into climate risks and focuses on climate science and advanced risk frameworks.

2. Balancing Theory and Application

Candidates often find it challenging to connect theoretical concepts to practical scenarios. Both the CFA ESG exam and the GARP SCR exam test not just knowledge but also the ability to apply it in real-world contexts.

3. Time Management

The multiple-choice format requires quick thinking and time management. Many candidates struggle to complete all questions within the allocated time, especially in the CFA ESG exam.

4. Complex Topics

• In the CFA ESG exam: Governance factors and how to integrate ESG considerations are often cited as the most challenging areas by the average CFA ESG alumni.

• In the GARP SCR exam: Climate risk modeling and scenario analysis are particularly demanding due to their technical nature, as stated by finance professionals after receiving their SCR exam results.

Understanding these challenges is the first step to overcoming them.

Strategies from Alumni: How to Succeed in the CFA ESG and GARP SCR Exams

1. Start Early and Plan Your Study Timeline

• For the CFA ESG Certificate, aim for 3-4 months of preparation. The CFA Institute recommends 100-130 hours of preparation to pass the CFA ESG Investing exam.

• For the GARP SCR Certificate, allocate 4-6 months, given the exam’s complexity. The Global Association of Risk Professionals (GARP) recommends 150-200 hours to clear the exam.

Obviously, prior qualifications and experience in Responsible Investing will have an impact on how much time any student needs to master the concepts.

2. Leverage High-Quality Study Materials

Resources from providers like Brainie are invaluable. These include:

• Comprehensive study notes.

• Practice questions and mock exams.

• Summaries of key concepts.

With Brainie specifically, materials have been developed by experienced Finance Professionals who have passed the ESG Certification, GARP SCR and other CFA Institute certificates.

3. Practice with Mock Exams

Mock exams help you gauge your readiness and refine your time management. Take at least two full-length practice exams before test day. This process is extremely important to achieve the CFA ESG pass rate. The mock exams are designed to replicate the Prometric Online testing conditions.

4. Focus on Application

Use case studies and scenario-based questions to bridge the gap between theory and practical application, especially as exam dates get closer.

5. Join a Study Group or Forum

Engaging with peers through platforms like 300 Hours or local CFA ESG/GARP SCR chapters can provide additional insights and motivation. Brainie GARP SCR & CFA ESG Study Group

Timing Your Success: Best Practices for Registration, Deadlines, and Exam Preparation for CFA ESG certificate and GARP SCR course

CFA ESG Certificate

• Registration: CFA ESG Exam registration is open year-round. Once CFA ESG Certificate fees are paid, you can select any of the available exam dates.

• Preparation Tips: Create a 12-week study schedule, allocating time for reading, quizzes, and mock exams, in order to be ready for the exam date.

GARP SCR Certificate

• Registration: Exam windows for the GARP SCR exam are offered twice a year. Here again, you can select between the two exam window upon paying the registration fees.

• Preparation Tips: Begin studying 4-6 months before the exam, with an emphasis on practice tests in the final month, in order to be ready for the exam date.

Sticking to a well-structured timeline ensures you’ll be fully prepared by test day.

Mastering the CFA ESG Certificate and GARP SCR Curriculum: Effective Study Plans

Week 1-4: Build Your Foundation

• Read the official CFA ESG book/GARP SCR book and study guides (like Brainie's study notes).

• Focus on understanding basic concepts in ESG investing and climate risk.

Week 5-8: Deep Dive

• Use supplementary resources to explore complex topics like governance and climate risk modeling.

• Start taking topic-specific quizzes.

Week 9-12: Practice and Review

• Shift focus to mock exams and timed practice.

• Review weak areas identified in practice tests. Here it's instrumental to refer back to the CFA ESG book/GARP SCR book for areas that seem particularly difficult to understand.

Week 13-16 (for GARP SCR):

• Spend additional time on technical topics and regulatory frameworks.

• Complete at least two full-length practice exams.

A structured plan helps you balance content mastery with exam readiness.

Achieving Long-Term Career Success with Brainie’s CFA ESG Certificate and GARP SCR Exam Prep

At Brainie, we’re committed to your success. Our tailored prep resources for the CFA ESG Certificate and GARP SCR certifications provide:

• Customized Study Plans: Designed to fit your schedule and learning pace.

• Comprehensive Resources: Including large question banks (500+ questions), 2 mock exams, and extensive summary notes.

• Expert Guidance: Access to ESG and climate risk specialists for personalized support (with the Platinum program).

• Community Support: Connect with other candidates and share insights through Brainie’s exclusive forums.

With Brainie, you’re not just preparing for an exam—you’re building expertise to enhance career prospects in sustainable finance.