GARP SCR Exam Preparation

GARP SCR: Understanding Radiative forcing  This question was posed by one of the group member Valentina Ricciuti from the Linkedin group (https://www.linkedin.com/groups/12842133/).  What is Radiative forcing?

Cross-industry climate-related metric: Internal Carbon Price  The Task Force on Climate-related Financial Disclosures (TCFD), an initiative by the Financial Stability Board (FSB), recommends disclosing climate-related metrics to cover three broader topics (2017): a. Disclose metrics used to assess climate-related risks and opportunities in line with the strategy and risk management process.In addition, the TCFD recommends that organizations clearly disclose metrics used to assess progress against their decarbonization targets, including related operational and financial performance metrics, metrics aligned with " the cross-industry " ** , climate-related metric categories, and industry-specific or organization-specific metrics (TCFD, 2021). ** Internal carbon price is a cross-industry climate-related metric.There are two variants of Internal Carbon price , which being, Shadow Carbon pricing and Internal Carbon pricing. Let me explain these two types of pricing:

Dear Readers, You will see a LinkedIn share button on all the posts in this blog. I have shown it encircled in red in the the screenshot. You may click on it and feel free to share any of the posts through your LinkedIn handle.    

Benchmark your GARP SCR practice quiz score   Dear Readers,  Below post is dated: 20th Sep,2023. Please refer to the latest score summaries here at this link  published on 5th Feb'24.

What is Climate Value At Risk (CVaR) Source: Built the below explanation by modifying the base article sourced from Philippe Jorion's Orange County Case (Below article is a 6 mins reading time) CVaR or Climate Value at Risk is a variation of the standard Value at Risk (VaR). It is important to understand VaR first.   What is VaR? VAR summarizes the predicted maximum loss (or worst loss) over a target horizon within a given confidence interval. How can we compute VAR? Assume you hold $100 million in medium-term notes. How much could you lose in a month? As much as $100,000? Or $1 million? Or $10 million? Without an answer to this question, investors have no way to decide whether the returns they receive is appropriate compensation for risk. To answer this question, we first have to analyze the characteristics of medium-term notes. We obtain monthly returns on medium-term bonds from 1953 to 1995.                                              Figure   1  

Interesting questions from the GARP SCR aspirants#1  Dear Readers,      This is about some interesting questions that my group members on the LinkedIn group "GARP SCR 2023 October exam prep" (https://www.linkedin.com/groups/12842133/) have asked while preparing for the exams. What is interesting about these questions is just how keen the aspirants have been on understanding the content. This is what is precisely required for preparing for the GARP SCR certification exam.  It is the depth  of understanding that really matters and helps you remember the vast content as part of the curriculum. I am sharing those questions with all of you with a hope that it benefits all of you who are preparing for the exam. So, are you ready for the questions? Question 1: Question is from Chapter-1  Why is it that the sea-level rise lags GHG emissions? (Question posed by a group member from Singapore ) Let us refer to the page 19/227 of the e-book. I have attached a screenshot of

Trick to remember list of Sustainable development goals - SDG  Readers,    Here is a trick (Mnemonic) to remember the different Sustainability Goals.   Remember the phrase  "I hope We can"    Disclaimer:   This is not my idea. Full credit to Muhmad Hassan and his team for coming up with this Menmonic.

Understanding Carbon intensity and Emission factor Carbon intensity refers to the amount of carbon dioxide (CO2) emissions produced per unit of a specific activity, product, or economic output. It is typically measured in units such as kilograms of CO2 per megawatt-hour (kg/MWh) for electricity generation or metric tons of CO2 per unit of GDP for economic activities. Carbon intensity is a crucial metric for assessing and comparing the environmental impact of different processes, technologies, industries, or regions. Lower carbon intensity indicates a more environmentally friendly and sustainable operation, while higher carbon intensity suggests a greater carbon footprint and potential environmental harm. Efforts to reduce carbon intensity often involve adopting cleaner and more energy-efficient technologies, increasing the use of renewable energy sources, improving energy efficiency, and implementing carbon capture and storage (CCS) technologies to mitigate the impact of

 This should interest especially to all Risk management professionals and mathematicians. Try to answer this question using all your experiences and understanding of the fundamentals about a parameter called Climate Value at Risk.  Your response should be easy to understand for those professionals who are not from your field.  Are you ready? Here are simple questions: 1.  How do you explain CVaR in not more than 50 words? 2. Is it good to have a high or low value of CVaR ? 3. How do you interpret the value of CVaR as 0 or 0%? Is it possible to have such a value in practice? 4. How do you interpret the value of CVaR as 1 or 100%? Is it possible to have such a value in practice? Please share your comments here. We will look forward to hear from you. Thanks!

Test Your Understanding with a FREE Quiz for GARP SCR Certification - Chapter 8  Thank God,its Friday. A brand new exciting quiz for you! This quiz is based on Chapter 8: "Net Zero"  from GARP SCR course. You will find some interesting questions to tackle. Please feel free to share your feedback. Ready for the exam then? Click on this    link to take the short exam     Why support? #Questions #quiz #GARP #SCR #exam #free #Chapter #Net #Zero #Test