A credit loan officer at a commercial bank reviews a loan application from a company engaged in coal-fired power generation. The loan officer examines transition risks associated with the company’s business strategy.
What policy risk driver should the loan officer identify?
In response to policy and technology changes, a cement manufacturer looks for new opportunities to raise profits by reducing GHG emissions. Because the cement industry accounts for a considerable percentage of global emissions, the manufacturer joins a coalition of company peers. The coalition lobbies country governments to adhere to the Paris Agreement nationally determined contributions (NDCs).
Which of the following actions does the coalition recommend?
An alliance of electricity power producers examines a proposed cap-and-trade regulation that would affect most members. The alliance lobbies lawmakers to strengthen banking and borrowing provisions in the proposed regulation, allowing increased flexibility for the sector to comply with emissions limits.
What component of climate risk is the alliance directly attempting to influence?
The Commissioners of Insurance for a state in the western United States recommends all insurers now report annually on climate change, using TCFD guidance.
Which of the following sectors do the commissioners correctly identify as encompassing the full scope of the TCFD recommendations?
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