SCR – Sustainability and Climate Risk Certificate

Develop Expertise in Sustainability, Climate Risk Management, Green Finance and Environmental Risk Assessment

SCR – Sustainability and Climate Risk Certificate is a professional certificate programme conducted by the Global Association of Risk Professionals (GARP), USA.

The programme focuses on understanding sustainability principles, climate change, environmental risks and the financial implications of climate-related developments across organisations and global markets.

SCR combines climate science, sustainability frameworks, physical and transition risks, green finance, climate risk modelling, scenario analysis and environmental governance, developing essential analytical and professional skills for careers in banking, insurance, investment management, consulting and enterprise risk management.

Actuators Educational Institute (AEI) offers structured preparation aligned with the GARP SCR curriculum, helping students develop the knowledge required to understand climate-related risks and their practical applications in financial and business decision-making.

Course Structure & Syllabus

The SCR curriculum comprises ten major subject areas covering sustainability, climate change, environmental risks, financial markets and climate risk management.

Key Topics Covered:

1. Foundations of Climate Change:
   Climate science fundamentals, greenhouse gases, global warming, climate systems, causes of climate change, historical temperature trends and environmental consequences.
2. Sustainability:
   Sustainable development, Environmental, Social and Governance (ESG) principles, corporate sustainability, responsible investment, sustainable business practices and sustainability frameworks.
3. Climate Change Risk:
   Physical risks, transition risks, climate-related financial exposures, economic consequences, climate vulnerabilities and implications for financial institutions and businesses.
4. Sustainability and Climate Policy, Culture & Governance:
   International climate agreements, sustainability regulations, corporate governance, climate policies, stakeholder responsibilities and organisational risk management frameworks.
5. Green and Sustainable Finance:
   Green bonds, sustainability-linked bonds, sustainable investment products, climate finance, ESG investing, transition finance and financial instruments supporting environmental objectives.
6. Climate Risk Measurement and Management:
   Climate risk identification, risk assessment methodologies, risk indicators, climate-related financial exposures, risk mitigation techniques and integration of climate considerations into enterprise risk management.
7. Climate Models and Scenario Analysis:
   Climate modelling approaches, climate scenarios, stress testing, physical and transition risk modelling, uncertainty assessment and applications to financial risk management.
8. Net Zero:
   Net-zero emissions objectives, decarbonisation strategies, emission reduction pathways, carbon neutrality, energy transition and organisational climate commitments.
9. Climate and Nature Risk Assessment:
   Biodiversity loss, ecosystem degradation, nature-related financial risks, environmental dependencies and assessment of climate and nature-related business exposures.
10. Transition Planning and Carbon Reporting:
    Corporate transition plans, greenhouse gas accounting, carbon emission measurement, sustainability disclosures, climate reporting frameworks and monitoring decarbonisation progress.

The SCR syllabus focuses on climate change, sustainability, environmental risk assessment, sustainable finance, climate modelling and responsible business governance, developing the knowledge required to evaluate climate-related risks across financial institutions and organisations.

Syllabus Topics & Weightages

The SCR curriculum comprises ten principal examination areas:

The curriculum is reviewed annually by GARP. Candidates should refer to the official SCR Study Guide and Learning Objectives for the examination question allocation across chapters and the curriculum applicable to their examination year.

The SCR examination also covers selected required online readings prescribed by GARP.

Examination Structure

SCR is a computer-based multiple-choice examination assessing climate risk concepts, sustainability frameworks, environmental risk management and practical business applications.

Important Examination Guidelines

• Multiple-Choice Examination: Candidates must attempt 80 equally weighted questions within four hours.
• Conceptual & Practical Applications: Questions evaluate sustainability principles, climate science, financial risks, environmental policies and climate risk management frameworks.
• Case-Based Assessment: The examination includes a multi-part case study requiring candidates to apply climate risk concepts to practical scenarios.
• Quantitative Requirements: The examination is not highly quantitative, although basic numerical calculations, ratios and interpretation of graphs or tables may be required.
• Examination Mode: Candidates may appear at authorised Pearson VUE test centres or through eligible online proctoring arrangements.
• Examination Booking: Candidates must register through the GARP portal and schedule their examination within the applicable testing window.
• Examination Conduct: Candidates must comply with GARP’s identification, technical, examination security and testing requirements.

Eligibility Criteria

The SCR Certificate is suitable for students, graduates and working professionals interested in sustainability, environmental risk management and climate-related financial risks.

• No minimum professional work experience is required to register for the SCR examination.
• Students from Commerce, Finance, Economics, Actuarial Science, Mathematics, Statistics, Engineering and Environmental Science backgrounds may pursue the programme.
• Working professionals in banking, insurance, investment management, consulting, sustainability, auditing and financial services may also enrol.
• Prior professional experience in sustainability or climate risk management is not mandatory.
• A basic understanding of financial markets, risk management, environmental issues and economic concepts is beneficial.
• Candidates must satisfy GARP’s applicable registration, identification and examination requirements.

Important: Candidates who successfully pass the SCR examination receive the GARP Sustainability and Climate Risk Certificate. Unlike the FRM certification, SCR does not require two years of relevant professional work experience.

Learning Objectives

Studying SCR develops the ability to:

• Understand the fundamentals of climate change and sustainability.
• Identify physical, transition and nature-related risks.
• Evaluate climate-related financial and business exposures.
• Understand sustainability policies, ESG principles and regulatory frameworks.
• Analyse green finance markets and sustainable financial instruments.
• Apply climate risk identification and assessment techniques.
• Understand climate models, scenario analysis and stress testing.
• Evaluate net-zero commitments and decarbonisation strategies.
• Understand biodiversity and nature-related financial risks.
• Interpret carbon accounting, climate disclosures and transition planning.
• Develop professional judgement in sustainability and climate risk management.

Practical Applications of SCR

The knowledge gained through SCR is applicable across several financial, environmental and risk management disciplines:

1. Banking & Financial Institutions:
   Evaluating climate-related credit risks, environmental exposures, sustainable lending practices and the impact of climate change on financial stability.
2. Insurance & Actuarial Risk Management:
   Assessing catastrophe risks, climate-related insurance losses, underwriting exposures, claims modelling and the impact of environmental changes on insurance liabilities.
3. Investment & Portfolio Management:
   Evaluating sustainable investment opportunities, ESG risks, green bonds, transition finance and climate-related portfolio exposures.
4. Enterprise Risk Management:
   Identifying physical and transition risks, conducting climate stress testing, evaluating climate scenarios and integrating environmental risks into organisational risk management frameworks.
5. Sustainability Consulting & Regulatory Compliance:
   Supporting climate risk assessments, sustainability reporting, carbon accounting, climate governance and organisational transition planning.

SCR develops an understanding of sustainability and climate-related financial risks, supporting professional applications in climate risk management, sustainable finance, actuarial risk assessment, ESG analysis and environmental governance.

Technical Requirements – AEI Learning Application

To access online classes, recorded lectures and digital study resources, students must ensure their devices meet the following minimum technical requirements of the Actuators Educational Institute (AEI) Learning Application.

Students are advised to maintain a stable internet connection and verify device compatibility before enrolment. The application may be restricted on organisational devices or networks due to firewall, proxy, VPN or administrative security policies.

Note: These specifications apply to the AEI Learning Application. The official GARP SCR examination has separate technical requirements prescribed by GARP and Pearson VUE.