GARP Sustainability and Climate Risk (SCR) Certificate · International · Global Association of Risk Professionals
Original practice questions written to the published syllabus · not past papersHow companies report sustainability information and how investors use it: materiality, GRI, ISSB IFRS S1 and S2, the EU CSRD and ESRS, TCFD and TNFD recommendations, national regimes such as India's BRSR, assurance and greenwashing. The versions in force change often; the manual names the version it describes.
In the exams: GARP SCR; CFA Institute Sustainable Investing Certificate; GRI certified training; SEA/SEP (GBCI); corporate sustainability roles
How our questions for GARP Sustainability and Climate Risk Certificate spread across the units of Sustainability Reporting & ESG Disclosure. Difficulty: 9 easy, 24 medium, 15 hard.
| ISSB: IFRS S1 general requirements and IFRS S2 climate | 8 | |
| TCFD pillars: governance, strategy, risk management, metrics and targets | 8 | |
| TNFD and the LEAP approach for nature | 8 | |
| ESG ratings and data providers | 7 | |
| Assurance of sustainability information | 5 | |
| EU CSRD and ESRS | 4 | |
| Agriculture and food sector disclosure topics | 3 | |
| National mandatory sustainability-reporting regimes | 3 | |
| Single and double materiality | 1 | |
| Greenwashing and green claims regulation | 1 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
What does IFRS S2 require about climate resilience?
B. A resilience assessment of strategy using scenario analysis proportionate to its circumstances
S2 requires climate-related scenario analysis to assess resilience, with an approach commensurate with the entity's skills, capabilities and resources. It does not guarantee profitability, prescribe a single scenario or defer to TNFD.
Further reading: IFRS S2 (2023)
Under the EU Taxonomy, which three conditions make an economic activity taxonomy-aligned?
A. Substantial contribution, do no significant harm, and minimum safeguards
Alignment requires a substantial contribution to at least one objective under technical screening criteria, no significant harm to the others, and compliance with minimum social safeguards. Financial, ownership or certification criteria are not the test.
Further reading: Regulation (EU) 2020/852
How many recommended disclosures does the TNFD set out?
A. Fourteen
The TNFD has fourteen recommended disclosures across governance, strategy, risk and impact management, and metrics and targets; the TCFD had eleven.
Further reading: TNFD 2023
Why does the TNFD emphasise location-specificity more than climate disclosure frameworks do?
A. Nature effects depend on the specific ecosystem, so the same activity matters differently by place
A tonne of CO2 has the same climate effect anywhere, but water use in a stressed basin or land conversion in a biodiversity hotspot has far greater effect than elsewhere; hence the TNFD's focus on priority locations. The other claims are false.
Further reading: TNFD 2023
From which date did Australia make climate-related financial disclosure mandatory for its largest entities?
C. Financial years beginning 1 January 2025
Australia's regime, based on the AASB S2 standard aligned with IFRS S2, began with large entities for years starting 1 January 2025, phasing to smaller entities.
Further reading: Corporations Act amendments 2024 (Australia)
What do ESG ratings typically express?
C. An opinion on a company's ESG risk management or performance relative to peers
ESG ratings are opinions, usually industry-relative, on ESG risk exposure and management or on performance and impacts. They are not credit ratings, audited profits or licences.
Further reading: IOSCO 2021
How is a limited assurance conclusion typically worded?
C. Nothing has come to our attention that causes us to believe the information is materially misstated
Limited assurance gives a negative-form conclusion after fewer procedures; reasonable assurance gives a positive opinion. Assurance never guarantees complete accuracy, and a disclaimer is not assurance.
Further reading: ISAE 3000 (Revised)
Which IAASB standard, issued in November 2024, applies to sustainability assurance engagements under any framework?
B. ISSA 5000
ISSA 5000 General Requirements for Sustainability Assurance Engagements is profession-agnostic and framework-neutral, effective for periods beginning on or after 15 December 2026. ISAE 3402 covers service organisation controls; ISA 700 audit reports; ISO 14065 verification bodies.
Further reading: IAASB 2024
Why is assurance of Scope 3 and supply-chain labour data particularly difficult?
D. The data come from outside the company's control, often as estimates without strong controls
Value-chain data rely on suppliers and secondary factors and lack the internal controls of company systems, so evidence is weaker; providers test estimates and assumptions rather than refusing. The other claims are false.
Further reading: ISSA 5000
Which preparation most improves a company's readiness for reasonable assurance of sustainability data?
B. Building internal controls over sustainability data comparable to those over financial data
Documented processes, data ownership, reconciliations, review and IT controls give auditors reliable evidence. Shortening, changing methods each year and ad hoc compilation increase risk of misstatement.
Further reading: Assurance practice
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