GARP SCR vs CFA Climate Risk, Valuation, and Investing Certificate: A Comprehensive Comparison

Kateryna Myrko
3 hours ago
4 min read

Climate change is reshaping the financial world. As a result, professionals need specialized knowledge to understand climate-related risks and opportunities. Two leading certifications have emerged to meet this demand: the GARP Sustainability and Climate Risk (SCR) Certificate and the CFA Institute Climate Risk, Valuation, and Investing Certificate.

This article breaks down the key differences between these two credentials to help you choose the right one for your career.

GARP SCR vs CFA Climate Risk, Valuation, and Investing Certificate

GARP SCR Certificate

Launched in 2020 by the Global Association of Risk Professionals, this certificate focuses on managing climate and sustainability risks. It's designed for professionals who need to identify, measure, and mitigate risks in their organizations. Think of it as the "risk management" approach to climate.

CFA Climate Risk Certificate

Created by the CFA Institute, this certificate teaches you how to integrate climate factors into investment decisions. It's all about valuation, portfolio construction, and investment analysis. This is the "investment professional" approach to climate.

The Main Difference: GARP focuses on organizational risk management across all business functions. CFA focuses on investment analysis and portfolio decisions.

Who Should Get Each Certificate?

Choose GARP SCR if you work in: GARP SCR vs CFA Climate Risk, Valuation, and Investing Certificate

Risk management departments
Banking and insurance
Corporate sustainability
Regulatory compliance
Enterprise risk management

Choose CFA Climate Certificate if you work in:

Investment analysis
Portfolio management
Wealth management
Asset management
Financial advisory services

What Will You Learn?

GARP SCR Curriculum

The exam covers broad risk management topics:

Climate change fundamentals
Sustainability frameworks
Physical risks (floods, storms, heat waves)
Transition risks (policy changes, technology shifts)
Nature-related financial risks
Green finance and sustainable investing
Transition planning for organizations

CFA Climate Certificate Curriculum

The program has five courses focused on investing:

Climate Science Basics - Understanding the science, risks, and regulatory landscape
Corporate Transition Planning - How companies prepare for a low-carbon economy
Analyzing Stocks and Bonds - Applying climate factors to equity and fixed income valuation
Alternative Investments - Climate considerations in private equity, real estate, and infrastructure
Portfolio Management - Building portfolios with climate factors and engaging with companies

The Key Difference: GARP teaches you how to protect organizations from climate risks. CFA teaches you how to make better investment decisions using climate data.

How Do You Get Certified?

GARP SCR Process

Register for the exam
Study for 100-150 hours using official materials
Take a 4-hour exam with 80 multiple-choice questions
Pass or fail scoring
If you pass, you're certified
If you fail, you can retake at a reduced rate

The exam is offered through Pearson VUE testing centers or online proctoring. You can schedule it at your convenience during exam windows.

CFA Climate Certificate Process

Enroll in the program (choose self-paced or cohort)
Complete five courses (about 100 hours total)
Pass quizzes in each course
Complete practical assignments
Do peer reviews of other students' work
Get your certificate when you finish all five courses

You have 12 months of access to all materials from when you enroll.

The Key Difference: GARP is one big exam you must pass. CFA is continuous learning with assignments throughout the program.

Study Formats and Flexibility

GARP SCR

You study independently using:

Official SCR Exam Book (print or digital)
GARP Learning online platform
Practice exams
Third-party prep courses (optional)

You pick your exam date and prepare on your own schedule. Most people do intensive studying in the weeks or months before their exam.

CFA Climate Certificate

You choose between two formats:

Self-Paced Option

Start anytime
No deadlines
Study at your own speed
Access to discussion forums
Complete whenever you want (within 12 months)

Cohort Option

Start on specific dates
6-month structured schedule
Learn with peers globally
Facilitated discussions
Optional virtual events
More accountability and community

The Key Difference: GARP requires you to prepare for one exam date. CFA lets you spread learning over time with more flexibility.

After You're Certified

GARP SCR Benefits

Digital badge to display on LinkedIn
Encouraged to join CPD (Continuing Professional Development) program
Stay updated on risk management practices
Network with 16,000+ risk professionals who've taken the exam
Strong credential for risk management roles

CFA Climate Certificate Benefits

Digital certificate and badge
Access to the Sustainable Investing Community
Exclusive networking opportunities
Professional development resources
Recognition under Hong Kong's regulatory framework
Government funding available for Hong Kong residents (up to 80-100%)

The Key Difference: Both give you credentials to showcase. GARP opens doors in risk management. CFA opens doors in investment management.

Which One Is Right for You?

Choose GARP SCR if:

You work in risk management or corporate strategy
You need to assess climate risks for your organization
You want a recognized risk management credential
You prefer one comprehensive exam
Your role involves enterprise-wide risk assessment

Choose CFA Climate Certificate if:

You work in investments or asset management
You analyze securities or build portfolios
You advise clients on investments
You prefer structured learning with assignments
Your role involves valuation and investment decisions

Can you do both? Absolutely! They complement each other. Some professionals get both to cover risk management AND investment applications.

Comparative Analysis Table

Conclusion

Both certifications are valuable, but they serve different purposes:

GARP SCR = Risk management perspective
CFA Climate Certificate = Investment management perspective

Your choice depends on your current role and career goals. If you manage risks in organizations, choose GARP. If you manage investments and portfolios, choose CFA.

As climate considerations become essential in finance, both credentials demonstrate your commitment to understanding this critical area. The best choice is the one that aligns with what you do every day and where you want to go in your career.