SCR Certificate: A Practical Introduction

One of the most important lessons from the COVID-19 pandemic thus far is that delays in responding to hazards with a high probability and high impact must be avoided at all costs.

The weather is shifting and in the near future, the risks associated with climate change are only going to increase. Managing climate hazards will be a crucial part of an all-encompassing risk management strategy for all industries worldwide as climate risk management continues to advance toward becoming a distinct professional title.

The new GARP SCR (Sustainability & Climate Risk) accreditation is useful in this situation; read this in-depth blog to find out more.

Overview of the GARP Sustainability and Climate Risk Certificate (SCR)

Launched in January 2020 by Global Association of Risk Professionals (GARP) – which also runs the FRM program – SCR is a global climate risk management program designed to help professionals understand the effect of climate change on organizations and how to manage that risk. It is created in response to growing demand for financial and non-financial firms alike to incorporate sustainability standards in their operations, primarily driven by climate change.

The SCR course is great for professionals who are looking to add climate risk management to their skillsets – not just for those working in finance but also in other disciplines such as supply chain management, operations and technology.

And it isn’t just for those professionals early in their career either, GARP expects to see meaningful demand for the SCR coming from the more senior ranks as well.

The course consists of 6 modules, covering:

• foundations of climate change;
• policy and regulation;
• green and sustainable finance;
• the science, effects and measurement of climate-related risks;
• scenario analysis; and
• emerging issues such as health effects and geopolitical impacts.
  

SCR Certificate in a Nutshell

The SCR certification is designed to equip professionals with the understanding on how to manage the potential economic and operational impacts of a changing climate on their organizations. The impact of climate change is vast, and certainly not limited to just finance, but other disciplines such as supply chain management, technology and operations.  

The SCR exam consists of a one-part, computer-based testing exam consisting of 80 multiple choice questions in 3 hours. The exam is not highly quantitative and designed to be accessible to a wide audience.

In terms of study hours, it is recommended that SCR exam candidates devote around 100 study hours in total to complete the qualification The SCR exam can be taken in specific exam windows at Pearson Vue test centers internationally.

In terms of pass criteria, the questions are equally weighted and there are no negative markings for incorrect answers. There are no pre-determined pass/fail rates for the SCR Exams, with the passing score determined by SCR Advisory Committee.

There are no official timelines on when or how long it takes for exam results to be released, but so far SCR exam results are typically released 4 weeks after the exams.

GARP SCR Pass Rate

Here are the recent SCR exam pass rates:

• October 2022 = TBA
• April 2022 = 54%
• October 2021 = 55%
• April 2021 = 52%

GARP has confirmed that cut-off scores will be determined through an industry best-practice methodology under the oversight of the SCR Advisory Committee. The expectation is that “properly prepared” candidates should fare well on the exam.

Exam Fees

SCR exam fees vary depending on:

• your membership status with Global Association of Risk Professionals (GARP);
• whether you have other GARP certifications such as Financial Risk Manager (FRM) or Energy Risk Professional (ERP);
• whether you’re a new or returning candidate.
  

Benefits of the SCR Certification

Having the SCR Certificate could be a key differentiator in the risk management sector, which could be helpful if you’re job hunting during this COVID-19 pandemic.  
 
Similar to the Certificate in ESG Investing in terms of cost and time required, it does seem to be a cost-effective investment for risk professionals to upgrade their skillset with climate risk management credentials.

By completing and earning the Sustainability & Climate Risk Certificate, you can expect to:

• Apply principles of sustainability and climate risk management in current and future roles
• Improve your career prospects and increase your competitive advantage
• Demonstrate the knowledge and tools necessary to assess and manage the sustainability and climate risk challenges many industries face
• Gain a globally recognized qualification (and digital badge) from GARP
• Pave your way for further finance designation such as FRM, CFA, or CAIA as you further specialize

GARP SCR vs CFA ESG Investing Certificate: Which Is Right for You?

In short, while both qualifications focus on sustainable investing, there are some slight differences in focus about them:

• Sustainability & Climate Risk (SCR) certificate mainly focuses on educating professionals on how to manage the main environmental risk (arguably just the “E” part of ESG), i.e. climate change.
• On the other hand, Certificate in ESG Investing has a slightly broader focus on ESG factors, and how the investment industry can adapt to that change in investor preferences. That said, it also covers a section on climate change (including climate mitigation, and adaptation and resilience) and a range of climate change initiatives.  

Both GARP’s SCR and CFA Institute’s ESG Investing Certificate are available globally, with the latter offering online proctoring option in certain markets.

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