SCR^® Required Readings

These readings are required as part of a comprehensive SCR study plan. An understanding of this material is needed, in addition to the chapters appearing in the SCR Certificate book. Unless labeled as “Optional”, this material will be covered on the SCR Exam.

Chapter 1. Foundations of Climate Change: What Is Climate Change?

No required online readings

Chapter 2. Sustainability

“UNEP-FI Principles For Responsible Banking,” United Nations Environment Programme Finance Initiative. (pages 3-38).
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The specific Learning Objectives for this online reading are as follows:

• Explain the requirements and suggested measures to take for each principle of responsible banking.
• Understand and describe how banks have implemented the responsible banking principles, along with the benefits of implementing these principles.

“UN Principles For Responsible Investment,” Principles for Responsible Investment, 2021.
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The specific Learning Objectives for this online reading are as follows:

• Describe how responsible investment approaches consider ESG issues with investment decision-making and ownership practices.
• Identify the six principles of responsible investment and potential ways to achieve them.

Chapter 3. Climate Change Risk

“Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures,” Task Force on Climate-related Financial Disclosures, October 2021. (pages 14-22). 
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The specific Learning Objectives for this online reading are as follows:

• Identify and discuss the purpose of the four Task Force on Climate-related Financial Disclosures (TCFD) disclosure parameters.
• Describe recommendations for TCFD disclosure parameters designed for all sectors.

 “Risk Management Fundamentals,” Global Association of Risk Professionals (GARP), December 2022.
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The specific Learning Objectives for this online reading are as follows:

• Define the major categories of financial risk faced by organizations.
• Understand and articulate how risk managers identify, measure, and manage credit risk, market risk, liquidity risk, and operational risk.

(Optional): “Handbook for Nature Related Financial Risks,” University of Cambridge, Institute for Sustainability Leadership.
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Chapter 4. Sustainability and Climate Policy, Culture, and Governance

“A call for action: Climate change as a source of financial risk,” Network for Greening the Financial System (NGFS), April 2019. (pages 4-9).
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The specific Learning Objectives for this online reading are as follows:

• Describe the six Network for Greening the Financial System (NGFS) recommendations for central banks, supervisors, policymakers, and financial institutions to manage environmental and climate-related risks.
• Explain how the NGFS recommendations can guide the financial sector in achieving the objectives of the Paris Agreement.

“The GHG Protocol: A corporate reporting and accounting standard (revised edition),” The Greenhouse Gas Protocol and World Business Council for Sustainable Development (WBCSD), March 2004. (Chapters 1, 3, 4).
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The specific Learning Objectives for this online reading are as follows:

• Describe greenhouse gas (GHG) accounting and reporting principles.
• Understand the two distinct approaches that can be used to consolidate GHG emissions.
• Explain the concept and importance of operational boundaries in GHG accounting.

Chapter 5. Green and Sustainable Finance: Markets and Instruments

No required online readings

Chapter 6. Climate Risk Measurement and Management

“Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures,” Task Force on Climate-related Financial Disclosures, October 2021. (pages 52-54).
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The specific Learning Objectives for this online reading are as follows:

• Understand the key advantages and disadvantages of common carbon footprinting and exposure metrics.
• Know the components of carbon metrics (e.g., revenue, current portfolio value, scopes).
• Calculate the weighted average carbon intensity of investments, total carbon emissions, and carbon footprint, given a set of inputs.

Chapter 7. Climate Models and Scenario Analysis

No required online readings

Chapter 8. Net Zero

No required online readings