CEA Climate Change & Sustainability Metrics 3

Question 1

Which reporting standard specifically requires organizations to disclose physical and transition climate risks to investors under a consistent framework?

Accepted Answer

Task Force on Climate-related Financial Disclosures (TCFD)

Answer

TCFD provides a voluntary framework for disclosing climate-related risks and opportunities structured around governance, strategy, risk management, and metrics.

Question 2

Which of the following is classified as a 'transition risk' under climate change scenario analysis?

Accepted Answer

Carbon pricing legislation increasing operational costs

Answer

Transition risks arise from the shift to a lower-carbon economy, including new carbon taxes, regulations, or technology shifts that affect business costs.

Question 3

A manufacturer calculates its product carbon footprint (PCF) using a cradle-to-gate boundary. What life cycle stage is EXCLUDED from this calculation?

Accepted Answer

Customer use and end-of-life disposal

Answer

Cradle-to-gate boundaries cover extraction through manufacturing but exclude downstream stages such as product use and end-of-life.

Question 4

According to the GHG Protocol Corporate Standard, which of the following is a primary characteristic of Scope 2 emissions?

Accepted Answer

Indirect emissions from purchased energy

Answer

Scope 2 covers indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling consumed by the reporting organization.

Question 5

The GHG Protocol's market-based method for Scope 2 accounting allows a company to use which instrument to claim lower emission factors?

Accepted Answer

Renewable energy certificates (RECs) or guarantees of origin

Answer

Under the market-based method, companies can use RECs or guarantees of origin to reflect procurement of renewable electricity with lower emission factors.

(CEA) Certified Environmental Auditor Practice Test

(CEA) Certified Environmental Auditor Practice Test

CEA Climate Change & Sustainability Metrics 3