GARP SCR 2025

What is climate change?

Climate change describes the long-term differences in the statistics of weather measured over multi-decadal periods. When the climate changes, it means the underlying statistical likelihoods are shifting, such as hot temperatures occurring more often.

The terms "climate change" and "global warming" are often used interchangeably by most people.

What is the difference between climate and weather?

Climate is long-term averages and patterns; climate refers to the long-term patterns or statistics of the weather, typically estimated over a period of several decades, such as 30 years or more.

weather is short-term conditions in a specific place and time. Weather refers to the exact state of the atmosphere at a particular location and time.

What are examples of evidence supporting climate change?

Rising surface and ocean temperatures, rising sea levels, shrinking glaciers and sea ice.

The conclusion that the climate is currently warming is supported by many independent data sets and statistical analyses, making it "beyond doubt".

Key trends identified include:

- An increase in global average temperature, showing the Earth has warmed by 1.2°C since the late-nineteenth century.

- Measurements from satellites confirm the warming trend seen in surface thermometers.

- Observed decreases in glacier ice and Arctic sea-ice extent.

- Increases in ocean heat content and global-average sea level change.

What causes sea levels to rise?

Melting grounded ice and the thermal expansion of seawater due to rising temperatures.

How do tree rings help us measure past climate?

They show patterns of temperature and precipitation over the past 1,000 years.

What method is used to measure climate over thousands of years?

Speleothems (cave deposits).

What method is used to measure climate over the past million years?

Ice cores.

What method measures climate over millions of years?

Corals.

What method measures climate over tens of millions of years?

Ocean sediment cores.

What is Earth's energy balance?

The energy Earth receives from the sun equals the energy Earth radiates back into space.

What is the greenhouse effect?

Greenhouse gases trap infrared radiation, keeping heat from escaping back into space.

What is the global warming potential (GWP) of CO₂?

1.

What is the GWP of methane?

28.

What is the GWP of nitrous oxide?

273.

What types of aerosols affect climate?

Aerosols reflect sunlight and have a cooling effect, but contribute to air pollution.

What are natural (non-human) causes of climate change?

Tectonic processes, sun output, orbital variations, and El Niño.

How is climate warming distributed geographically?

Continents and the Northern Hemisphere warm more than oceans and the Southern Hemisphere.

What is the impact of warming on precipitation?

Warming increases evaporation and precipitation; wet regions get wetter, dry regions get drier.

By how much does precipitation increase per degree of warming?

About 3% more per degree Celsius.

How much could oceans rise by 2100 under SSP2 scenario?

44 to 76 cm.

Who is most affected by climate-driven socioeconomic impacts?

Low-income and vulnerable populations.

What is maladaptation?

Adaptation efforts that have negative consequences, like planting invasive trees in afforestation.

What are examples of climate change adaptation strategies?

Sea walls, regulations, communication, access to technical help.

What is solar radiation management?

Injecting particles (like sulfur) into the atmosphere to reflect sunlight and reduce warming.

What is a downside of solar radiation management?

Potential unknown effects and geopolitical risks.

What are examples of carbon dioxide removal?

Planting trees, using natural climate solutions—limited in speed and scale.

What is a carbon budget?

The total amount of CO₂ that can be emitted to stay under a certain temperature threshold.

What is the CO₂ budget to stay under 1.5°C of warming?

250 billion tonnes.

What is the CO₂ budget to stay under 2°C of warming?

1.2 trillion tonnes.

How much CO₂ have humans emitted since the industrial revolution?

About 2.6 trillion tonnes.

What level of warming is expected with current commitments?

Between 2.5°C and 3°C.

What are the three pillars of sustainability?

Environmental, Social, and Economic.

What does environmental sustainability mean?

Meeting current needs without overburdening nature or future generations.

What does social sustainability mean?

Ensuring basic needs and human rights are met for all people.

What does economic sustainability mean?

Having accessible, inclusive systems that spread prosperity globally.

What is ESG?

Environmental, Social, and Governance criteria used to assess companies' sustainability practices.

What is CSR?

Corporate Social Responsibility - voluntary company actions that benefit society and the environment.

How did ESG evolve from CSR?

ESG formalized and expanded CSR, aligning corporate actions with investor and regulatory expectations.

What are SDGs?

Sustainable Development Goals - 17 global goals set by the UN to guide sustainable development through 2030.

What were the MDGs?

Millennium Development Goals - 8 global goals set in 2000 to address poverty and inequality by 2015.

Why did MDGs fail?

They lacked private sector engagement and were top-down.

How do SDGs differ from MDGs?

SDGs were developed bottom-up, are universally applicable, and include 17 goals with 169 targets.

Name 3 SDGs.

No poverty, Climate action, Gender equality.

What are ecosystem services?

Benefits humans receive from ecosystems, like clean water, pollination, and flood control.

What are the 4 types of ecosystem services?

Supporting, Provisioning, Regulating, and Cultural.

What is natural capital?

The stock of natural assets like forests, water, and biodiversity.

How do ecosystem services differ from natural capital?

Natural capital = stock; Ecosystem services = flow of benefits from that stock.

Give an example of natural capital and its ecosystem service.

Forest = natural capital; Timber or carbon sequestration = ecosystem service.

What are some tools to assess natural capital?

Natural Capital Protocol and WRI Ecosystem Services Review.

What is greenwashing?

Making false or misleading claims about environmental performance.

What is decoupling in greenwashing?

Making empty promises without real follow-through.

What is greenlighting?

Overemphasizing green actions to distract from harmful ones.

What is greenshifting?

Shifting blame for environmental damage onto consumers.

What is greenlabeling?

Using misleading labels to appear environmentally friendly.

What is greenrinsing?

Changing ESG targets before achieving previous ones.

What is greenhushing?

Underreporting or not disclosing environmental practices.

What is greenwishing?

Apparent climate-friendly choices that have limited or unintended negative impacts.

What is LCA?

Life Cycle Assessment - evaluates environmental impacts of a product from cradle to grave.

What are the 4 phases of LCA?

Goal/scope definition, inventory analysis, impact assessment, interpretation.

How is LCA used by companies?

To make decisions about sustainability, improve products, and validate green marketing claims.

Name one LCA standard.

ISO 14040.

What is the GRI?

Global Reporting Initiative - sustainability reporting framework.

What is SASB?

Sustainability Accounting Standards Board - industry-specific standards for disclosing ESG risks.

What is ISSB?

International Sustainability Standards Board - develops comprehensive global sustainability reporting standards.

How does PRI support ESG?

It provides principles for responsible investing and tools for engagement and reporting.

How does climate risk translate to financial risk?

By affecting assets, operations, and creditworthiness of companies, governments, and households—impacting financial institutions that lend to and invest in them.

What are the two types of climate risk?

Physical risk and transition risk.

What are physical climate risks?

Risks from the direct physical impacts of climate change (e.g. floods, hurricanes, sea level rise).

What are acute physical risks?

Sudden, extreme weather events like storms, wildfires, and floods.

What are chronic physical risks?

Long-term changes such as sea level rise or prolonged drought.

What are transition climate risks?

Risks from the shift to a low-carbon economy, including policy, legal, market, technology, and reputational changes.

Name four drivers of transition risk.

Policy & legal, technology, market, and reputational.

What is exposure in climate risk?

The presence of assets or operations in harm's way (e.g. in a flood-prone area).

What is vulnerability in climate risk?

How susceptible something is to being harmed, depending on its resilience or lack thereof.

How do exposure and vulnerability create climate risk?

When an exposed asset lacks adequate resilience, climate hazards lead to greater impacts.

What are stranded assets?

Assets that lose value or become liabilities due to climate-related factors (e.g. fossil fuel reserves).

Which sectors face the highest stranded asset risks?

Energy and industrial sectors (e.g. oil, coal, steel).

What are examples of acute hazards?

Hurricanes, wildfires, floods.

What are examples of chronic hazards?

Rising temperatures, sea level rise.

Why are hazard predictions difficult?

Climate models vary in accuracy, especially for localized or complex hazards.

Why is modeling vulnerability difficult?

It requires facility-level data and infrastructure-specific assessments.

What are indirect physical risks?

Supply chain disruptions, legal liability, labor productivity loss.

How does climate change affect labor productivity?

Heat stress reduces safe working hours and productivity.

How can physical risk lead to financial opportunity?

Companies can be rewarded for building adaptive infrastructure or offering resilience services.

What are policy risks in the transition?

Carbon taxes, emissions caps, mandated closures of polluting facilities.

What are technology risks?

New green technologies replacing carbon-intensive ones, disrupting traditional business models.

What are market risks?

Changing demand (e.g. less coal, more rare metals), asset repricing.

What are reputational risks?

Negative public perception for failing to act on climate issues.

What is a just transition?

Managing the social impacts of decarbonization by supporting affected workers and communities.

How can human capital become stranded?

Workers in high-carbon industries lose employment without reskilling or transition support.

How can companies mitigate transition risk?

By updating strategies, adopting low-carbon tech, engaging stakeholders, and improving transparency.

What are some examples of transition opportunities?

Green tech investments, efficiency improvements, low-carbon product markets.

What is the role of infrastructure in vulnerability?

Stronger infrastructure lowers climate vulnerability and reduces physical risk.

What does the ILO estimate for climate-related labor loss by 2030?

80 million full-time jobs lost globally.

What is the economic cost of climate-related labor loss?

Estimated USD 2.4 trillion by 2030.

Why is the concept of 'stranded assets' important for investors?

It helps assess long-term risks of holding carbon-intensive investments.

How do credit ratings factor in climate risk?

Major agencies are starting to integrate climate risk into creditworthiness assessments.

What was the first global agreement on climate change?

UNFCCC (United Nations Framework Convention on Climate Change), established in 1992 at the Rio Earth Summit.

What is the Kyoto Protocol?

A 1997 treaty requiring Annex I countries to reduce emissions by 5% below 1990 levels by 2008-2012; widely considered a failure due to design flaws.

What is the Paris Agreement?

A 2015 global accord aiming to limit global warming to well below 2°C, preferably to 1.5°C; based on voluntary Nationally Determined Contributions (NDCs).