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

Physical risk assessment maps climate hazards (acute events and chronic shifts) against asset locations and operations to quantify financial exposure from climate-related damage or disruption.

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

Emissions factors are coefficients (kg CO2e per unit of activity) that translate metered activity data into standardized greenhouse gas quantities, published by EPA, IPCC, and IEA among others.

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

Verification under standards like Verra's VCS or Gold Standard confirms that the carbon reduction is real, additional, measurable, permanent, and not double-counted.

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

Carbon insetting involves financing or co-investing in emission-reduction projects within the company's supply chain (e.g., regenerative agriculture with farmers), creating value chain co-benefits.

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 8.5 (Representative Concentration Pathway 8.5) represents a high-emission scenario with approximately 4°C warming and is widely used as a worst-case baseline in climate scenario analysis.

(ESG) Certified Environmental, Social, and Governance Consultant Practice Test

(ESG) Certified Environmental, Social, and Governance Consultant Practice Test

ESG ESG Climate Change & Carbon Management 2