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

TCFD was established to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, and insurers.

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

Physical climate risks refer to the direct impacts of climate change on business operations, assets, and supply chains, including acute events like hurricanes and chronic changes like rising sea levels.

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

An internal carbon price is a voluntary tool companies use to assign a monetary value to their carbon emissions, steering internal investment decisions toward lower-carbon options.

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

RECs represent proof that one megawatt-hour of electricity was generated from a renewable source; companies purchase them to substantiate claims that their electricity use is matched by renewable generation.

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

A life cycle assessment quantifies the environmental impacts, including greenhouse gas emissions, associated with all stages of a product's life from cradle to grave.

CSR - Corporate Social Responsibility Practice Test

CSR - Corporate Social Responsibility Practice Test

CSR Climate Change and Carbon Management 2