SCR SCR Climate Scenario Analysis & Stress Testing 2

Question 1

Under TCFD recommendations, which of the following is a required disclosure element for scenario analysis?

Accepted Answer

The resilience of the organization's strategy under different climate scenarios

Answer

TCFD requires companies to disclose how resilient their strategy is under different climate scenarios, including a 2°C or lower scenario.

Question 2

In SCR stress testing, 'acute physical risk' refers to which type of climate-related event?

Accepted Answer

Extreme weather events such as hurricanes, floods, and wildfires

Answer

Acute physical risks are event-driven hazards like storms and floods that cause sudden, discrete damage to assets and operations.

Question 3

Which metric is most commonly used in climate stress testing to quantify a portfolio's alignment with a net-zero pathway?

Accepted Answer

Implied Temperature Rise (ITR)

Answer

Implied Temperature Rise (ITR) maps a portfolio's financed emissions trajectory to a global temperature outcome, indicating alignment with net-zero pathways.

Question 4

In climate scenario analysis for the SCR exam, the 'hot house world' scenario is associated with which outcome?

Accepted Answer

Minimal climate policy action leading to 3°C or more warming and severe physical risks

Answer

The 'hot house world' scenario reflects a pathway where current policies are insufficient, resulting in warming above 3°C and intensifying physical climate hazards.

Question 5

For the SCR certification, chronic physical risks include which of the following examples?

Accepted Answer

Rising sea levels and persistent drought patterns

Answer

Chronic physical risks develop gradually over time, such as rising seas, shifting precipitation, and prolonged droughts that affect long-term asset values.

SCR - Sustainability and Climate Risk Certification Practice Test

SCR - Sustainability and Climate Risk Certification Practice Test

SCR SCR Climate Scenario Analysis & Stress Testing 2