ESG Environmental Sustainability & Risk Management 3

Question 1

The Science Based Targets initiative (SBTi) requires a company's near-term Scope 1 and 2 targets to be consistent with limiting global warming to:

Accepted Answer

1.5°C above pre-industrial levels

Answer

SBTi's updated criteria require near-term targets to align with a 1.5°C pathway, consistent with the ambition of the Paris Agreement.

Question 2

In a lifecycle assessment (LCA), the 'functional unit' is defined to:

Accepted Answer

Provide a quantified reference for comparing products with the same function

Answer

The functional unit quantifies the primary function delivered by the product system, enabling a like-for-like comparison between alternative systems.

Question 3

Which biodiversity accounting standard assigns monetary or quantitative values to ecosystem services affected by a business operation?

Accepted Answer

Natural Capital Protocol

Answer

The Natural Capital Protocol provides a standardized framework for businesses to identify, measure, and value their impacts and dependencies on natural capital including ecosystem services.

Question 4

A company's carbon intensity metric is best defined as:

Accepted Answer

GHG emissions per unit of economic or physical output

Answer

Carbon intensity normalizes emissions against a unit of output (e.g., revenue or production volume), enabling performance benchmarking across companies of different sizes.

Question 5

Under the EU Taxonomy Regulation, for an economic activity to qualify as environmentally sustainable it must:

Accepted Answer

Substantially contribute to at least one objective and do no significant harm to others

Answer

EU Taxonomy criteria require substantial contribution to at least one of six environmental objectives while not significantly harming any other, and meeting minimum social safeguards.

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

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

ESG Environmental Sustainability & Risk Management 3