ESG ESG Climate Change & Carbon Management 2

Question 1

What is the purpose of a 'physical climate risk assessment' for a corporate facility?

Accepted Answer

Identifying and quantifying risks from climate hazards (floods, heat, drought) that could damage assets or disrupt operations

Answer

Measuring the facility's carbon emissions under physical conditions

Answer

Assessing the physical security of ESG data servers

Answer

Evaluating the physical health risks to employees from climate change

Question 2

What is the role of 'emissions factors' in calculating a corporate carbon footprint?

Accepted Answer

They convert activity data (e.g., kWh consumed, liters of fuel burned) into CO2-equivalent emissions

Answer

They rank emissions sources by environmental severity

Answer

They adjust raw emissions data for industry-specific standards

Answer

They define the scope of emissions that must be disclosed

Question 3

What distinguishes a 'verified carbon offset' from an unverified one?

Accepted Answer

Verified offsets have been independently audited against recognized standards (e.g., VCS, Gold Standard) confirming the claimed emissions reduction actually occurred

Answer

Verified offsets are government-issued; unverified are from private markets

Answer

Verified offsets guarantee permanence for 1,000 years

Answer

Verified offsets cover Scope 3 emissions while unverified cover Scope 1 only

Question 4

What is 'carbon insetting' as distinct from carbon offsetting?

Accepted Answer

Investing in emission reductions within a company's own value chain rather than purchasing external offset credits

Answer

Setting internal carbon reduction targets without external validation

Answer

A more accurate method of carbon measurement

Answer

Carbon offsets purchased from suppliers

Question 5

Which TCFD-aligned scenario is most commonly used to represent a 'business as usual' high-warming pathway?

Accepted Answer

RCP 8.5

Answer

RCP 2.6

Answer

IEA NZE 2050

Answer

NGFS Orderly scenario

Question 6

What is the primary limitation of relying solely on carbon offsets to achieve net-zero claims?

Accepted Answer

Offsets do not reduce actual emissions and may represent non-permanent or non-additional reductions

Answer

Carbon offsets are too expensive for most companies

Answer

Carbon offsets cannot be used for Scope 1 emissions

Answer

Offset markets are not regulated in the United States