SCR Exam Results

Sustainability and Climate Risk Questions and Answers

Question 21

An EU vehicle braking system manufacturer implements a new sustainability framework for SLBs to finance projects with environmental and social benefits. The company sustainability team prepares a new SLB and submits the bond to an external reviewer for assessment. The bond contains four KPIs:

1. Scope 1 CO2 emissions

2. Supplier engagement on GHG emission reduction

3. Percentage of renewable energy used

4. Percentage of women in managerial roles

The bond benchmark year is 2022 and the bond will mature in 2030 Which of the following SPTs did the reviewer find aligns with the core components of SLB Principles?

Options:

Reduce emissions from purchased raw materials by 60% by 2030.

Increase women representation in managerial positions to 33% by 2025 and to 50% by 2030.

Increase renewable energy use to 20% by 2035 and to 50% by 2050.

Engage multiple suppliers to expand commitment to emission reduction targets by 30% by 2030.

Question 22

The central bank of a Southeast Asian country joins the NGFS to address climate-related risks and promote financial stability. To align with the central bank mandate and NGFS recommendations, the risk team prioritizes NGFS recommendations directly applying to the bank role in the financial system. Which central bank action will the team most likely prioritize during implementation?

Options:

Introduce fiscal policies to reduce GHG emissions and stabilize the national economy.

Assess the exposure of financial institutions to high-carbon sectors.

Develop and implement a national taxonomy for green economic activities.

Require all corporations to submit annual carbon emission reduction targets.

Question 23

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:

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.

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

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

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

Question 24

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:

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

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

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

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

Spring Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

Sustainability and Climate Risk Questions and Answers

Options:

Answer:

Options:

Answer:

Options:

Answer:

Options:

Answer:

CompTIA

Fortinet

Microsoft

Salesforce