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SCR Exam Dumps : Sustainability and Climate Risk

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Sustainability and Climate Risk Questions and Answers

Question 1

Leaders of an energy company meet to address physical and transition risks to company operations. At the meeting, the CRO recommends a strategy to mitigate physical climate risk to the company. Which of the following strategies will the CRO most likely recommend?

Options:

A.

Participate in a carbon trading scheme with peer companies.

B.

Develop a net-zero plan informed by peer company strategies.

C.

Reinforce flood defenses for power plants along rivers.

D.

Provide professional development for the local workforce.

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Question 2

To comply with publicly stated climate goals, a country dependent on fossil fuel production begins phasing out oil production facilities. Climate activists largely celebrate this commitment, while expressing concern for a just transition. Which of the following just transition programs will the activists most likely support?

Options:

A.

Increased funding for researchers examining alternatives to carbon-intensive fuel sources

B.

Subsidies provided to low-income residents who use carbon-intensive fuels

C.

A national scholarship program to retrain displaced workers from carbon-intensive industries

D.

An annual tax rebate for workers transitioning to jobs outside of carbon-intensive industries

Question 3

The board of directors of a growing asset management firm recommends the firm expand its ERM framework to incorporate climate risks. In response, the risk team references the COSO ERM framework for applying ESG-related risks to develop and propose a strategy to implement climate risk into the various ERM components.

How will the risk team modify the existing strategy component of the company’s ERM framework?

Options:

A.

Gather and use scores and physical and transition risk exposure data to conduct various analyses to determine if excess risk would exist in an unfavorable climate scenario.

B.

Evaluate the full business context on climate risk and understand how climate change affects the inputs, business activities, and outputs.

C.

Factor in climate risk impacts when reassessing risks after considerable business changes.

D.

Rank climate risks by likelihood of occurrence and severity to examine resulting outcomes and how the firm can mitigate these risks.