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Mock Exam Questions

Here are 8 sample mock questions for the GARP SCR exam

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Question 1 of 8

A global energy corporation has faced criticism for its environmental impact. In response, the corporation announces its commitment to achieving net-zero carbon emissions by 2050. However, an independent audit reveals that the company has not implemented any tangible measures or investments to support this claim, nor has it set any interim targets. According to the audit, which type of greenwashing did the corporation engage in? 

A

Symbolic actions

B

Attention deflection

C

Decoupling

D

Risk mitigation

Question 2 of 8

A compliance officer at a multinational corporation is preparing a presentation for a sustainability workshop. The presentation aims to highlight enforcement mechanisms designed to ensure companies align with sustainability standards and prevent greenwashing. Which example of policy enforcement should the officer include in the presentation? 

A

Regulators encourage voluntary disclosures, leaving companies to determine what qualifies as sustainable under general guidelines

B

The introduction of mandatory sustainability certifications ensures that all advertised "eco-friendly" products meet verified environmental standards

C

Greenwashing occurs when a company voluntarily exceeds mandatory sustainability disclosure requirements but is accused of misrepresentation

D

The establishment of global sustainability goals requires all companies to adopt the same industry-specific measures for compliance

Question 3 of 8

A coalition of activist investors and community organizations pressures an energy corporation to adopt a revised operational strategy. They propose forming a task force to develop a plan that integrates environmental sustainability and community well-being with profitability goals. This kind of stakeholder influence stems from which private sector development of the 1980s and 1990s? 

A

Corporate social responsibility

B

Integrated reporting

C

Triple bottom line

D

Environmental stewardship

Question 4 of 8

A real estate company is evaluating water risks associated with its properties in water-scarce regions. It seeks to integrate water risk assessment into its overall nature risk management strategy. Which factor is most critical in assessing water risk for the company’s properties? 

A

Projected changes in regional water regulations

B

Historical water consumption data for each property

C

Baseline water stress levels and replenishment rates

D

Stakeholder engagement in local water management practices

Question 5 of 8

An environmental policy advisor working for a logistics company is creating a presentation on market-based mechanisms to regulate greenhouse gas (GHG) emissions. The advisor wants to explain the distinctions between different emissions trading systems (ETS). Which of the following would be correct for the advisor to include in the presentation? 

A

In a ‘baseline-and-credit’ system, a fixed carbon price is set that increases predictably over time to incentivize emissions reductions.

B

In a ‘baseline-and-credit’ system, companies that emit below a predetermined baseline can generate credits that are sold to those exceeding the baseline

C

In a ‘cap-and-trade’ system, an aggregate emissions cap is set for the entire market, and companies buy or sell allowances based on their emissions performance relative to the cap.

D

In a ‘cap-and-trade’ system, each company is assigned an individual emissions target that cannot be traded or adjusted

Question 6 of 8

A global manufacturing company is aligning its reporting practices with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). In its sustainability report, the company identifies increased frequency of droughts and heatwaves as long-term physical climate risks to its operations and explains how these risks could impact its future business strategies. This disclosure aligns with which thematic area of the TCFD? 

A

Governance

B

Strategy

C

Risk management

D

Metrics and targets

Question 7 of 8

The CFO of a renewable energy company is exploring the issuance of green bonds to finance upcoming solar farm projects. While reviewing the voluntary Green Bond Principles, which of the following would the CFO find to be accurate? 

A

Green bond proceeds can be used for projects in any sector, as long as they promote environmental benefits, but must be transparently tracked and reported

B

Obtaining a third-party certification for the environmental benefits of the funded projects is mandatory under the Green Bond Principles

C

Green bond issuers are required to integrate the bond proceeds into their general accounts to align with overall corporate financial strategies

D

Qualitative descriptions of environmental benefits are preferred over quantitative metrics due to the lack of standardization across green projects

Question 8 of 8

Company XYZ operates a fleet of vehicles as part of its daily delivery operations. To comply with greenhouse gas (GHG) reporting requirements, it needs to classify emissions from the combustion of fuel used in its vehicles. These vehicles are owned and operated by the company. Which GHG scope reporting category applies to these emissions? 

A

Scope 1

B

Scope 2

C

Scope 3

D

Scope 4

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