CSR Climate Change and Carbon Management 2

Question 1

What is the primary purpose of the Task Force on Climate-related Financial Disclosures (TCFD) framework?

Accepted Answer

To help companies disclose climate-related risks and opportunities to investors and stakeholders

Answer

To set mandatory carbon reduction targets for publicly traded companies

Answer

To certify companies that have achieved net zero emissions

Answer

To administer the international carbon credit trading market

Question 2

Which of the following best describes 'physical climate risk' for a business?

Accepted Answer

Risks from direct climate impacts such as extreme weather, flooding, and sea-level rise

Answer

Risks from stricter environmental regulations and carbon pricing policies

Answer

Risks from consumer preferences shifting toward greener competitors

Answer

Risks from litigation related to the company's historical emissions

Question 3

What is an internal carbon price (ICP)?

Accepted Answer

A shadow price companies assign to carbon emissions internally to guide investment and decision-making

Answer

The market price of carbon credits on the voluntary carbon market

Answer

A fee governments charge companies per ton of CO2 emitted

Answer

The cost of purchasing renewable energy certificates (RECs)

Question 4

Renewable Energy Certificates (RECs) are primarily used by companies to:

Accepted Answer

Claim that a portion of their electricity consumption is matched by renewable energy generation

Answer

Offset Scope 1 direct emissions from combustion processes

Answer

Verify that their supply chain suppliers use renewable energy

Answer

Reduce their reported Scope 3 downstream emissions

Question 5

A company conducting a life cycle assessment (LCA) for climate purposes is evaluating:

Accepted Answer

The carbon emissions associated with a product from raw material extraction through end-of-life disposal

Answer

The financial lifecycle of a climate investment over its depreciation period

Answer

The regulatory lifecycle of carbon legislation from proposal to enforcement

Answer

The career lifecycle of a company's sustainability officers

Question 6

What is 'transition risk' in the context of corporate climate change exposure?

Accepted Answer

Financial and reputational risks arising from the shift to a lower-carbon economy, such as new regulations or market shifts

Answer

The operational disruption caused by relocating facilities away from flood zones

Answer

The risk of employee turnover during a company's sustainability transformation

Answer

The risk that renewable energy projects will not generate enough power during the transition period

Question 7

Which international initiative helps companies set emissions reduction targets consistent with a 1.5°C climate pathway?

Accepted Answer

Science Based Targets initiative (SBTi)

Answer

UN Global Compact

Answer

Carbon Disclosure Project (CDP)

Answer

International Organization for Standardization (ISO)