GARP SCR Certificate: A Credential That Connects Finance with Sustainability

Professionals must have the necessary abilities to stay ahead as climate risk becomes a major problem in global banking. An organized route to become an expert in risk management and sustainability is provided by the SCR Certificate.

1) Overview The GARP (SCR) Sustainability and Climate Risk Certificate

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 skill sets – 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
  • emerging issues such as health effects and geopolitical impacts
A man in a suit stands at a crossroads labeled Finance and Sustainability, holding a finance sign, with city buildings and various business icons in the background.

Registration opened in May 2020 for the first SCR exam in September, with GARP reporting that there are already candidates from more than 60 countries globally, coming from a myriad of industries, company types and stages of career – all reflecting the relevance of climate change risks across geographies, industries and career level.

Since the inception of SCR exams, more than 16,000 candidates have registered for the exam so far, with more than 7,000 SCR title holders. GARP has also recently announced some changes for October 2024’s exam and onwards which we will cover below.

2) GARP (SCR) Certificate In A Nutshell

The SCR (Sustainability and Climate Risk) certification is designed for professionals who wish to gain a comprehensive understanding of how climate change can impact various sectors of business, particularly focusing on economic and operational aspects. This certification is not only relevant to finance but also applies to fields such as supply chain management, technology, and operations.

  1. Exam Structure and Format
    -: 90 multiple-choice questions
    -: case studies
    -: Duration: 4 hours
    -: Changes in format and pricing starting from October 2024
  1. Study Requirements
    -: Recommended study time: 100-150 hours
    -: No formal educational or work experience requirements
  1. CPD (Continuing Professional Development)
    -: Voluntary CPD of 20 hours every 2 years
  1. Global Recognition
    -: Globally recognized certification awarded by the Global Association of Risk Professionals (GARP)
    -: Cost-effective qualification for climate risk management professionals
  1. Exam Details
    -: No negative marking for incorrect answers
    -: Equal weightage for all questions
    -: Passing score determined by the SCR Advisory Committee
  1. International Availability
    -: The exam is available at Pearson Vue test centers worldwide
    -: Results are typically available 4 weeks after the exam (no official timeline)

3) Requirements for the GARP SCR Certificate

The GARP SCR (Sustainability and Climate Risk) certification does not have any specific work experience or prior qualification requirements for candidates to sit for the exam. This makes it accessible to professionals from various backgrounds who are interested in climate risk management.

  • No Educational or Work Experience Prerequisites: Anyone interested in the exam can apply, regardless of their educational background or work experience.
  • Digital Badge & Certification: Upon successful completion of the exam, candidates are eligible to receive a digital badge for LinkedIn and an electronic certificate from GARP to showcase their achievement.

4) Benefits of the GARP (SCR) Certification

Earning the GARP SCR (Sustainability and Climate Risk) certificate can be a significant advantage, especially in today’s competitive job market. It can set you apart in the risk management sector and enhance your career prospects, particularly as industries increasingly prioritize sustainability and climate risk management.

  • Practical Application: Learn to apply the principles of sustainability and climate risk management in both current and future roles.
  • Enhanced Career Prospects: Boost your career prospects and gain a competitive edge in the job market.
  • Industry Expertise: Demonstrate the knowledge and skills needed to assess and manage sustainability and climate risk challenges faced by various industries.
  • Global Recognition: Earn a globally recognized qualification from GARP, along with a digital badge for LinkedIn to showcase your achievement.
  • Pathway for Further Designations: The SCR certification can serve as a stepping stone for other finance-related certifications like FRM, CFA, or CAIA as you specialize further in the field.