A climate resilience consultant prepares an overview for a regional agency client. The overview summarizes climate policies that significantly reduce emissions. The client expresses a strong preference for a policy that limits emissions and offers flexibility in participant permits.
What policy should the consultant recommend to the client?

• A. Cap-and-trade scheme
• B. Feed-in tariffs
• C. Carbon tax
• D. Fuel efficiency standards

A global cosmetics company surveys consumers. The survey reveals close to 75% of consumers indicate sustainability is an important issue and are willing to change shopping habits to reduce environmental impact.
The company responds by establishing a sustainability framework. As part of the process to implement this framework, a company sustainability analyst identifies sustainable investment and disclosure practices.
Which recommendation will the analyst likely make to implement a company sustainability framework?

• A. Use the EU Taxonomy for classifying products as "green" when doing business in the EU market but develop new classification systems for jurisdictions outside the EU.
• B. Conduct internal audits annually and disclose any greenwashed product findings to government green finance taskforces.
• C. Follow NGFS sustainability best practices and verify company products and activities are considered sustainable through NGFS recommended voluntary disclosures.
• D. Incorporate mandatory disclosures and marketing requirements to ensure claims about sustainable products are fair and not misleading.

The CRO for a large agriculture company reviews reference scenarios as part of an annual climate scenario analysis exercise. The CRO creates a transition risk matrix that compares four different scenarios - W, X, Y,
Z. Scenarios are compared according to scale of emissions cuts and pace of emission cuts. Scale is depicted as business as usual (BAU) to net-zero. Pace is depicted as orderly to disorderly. The CRO uses this matrix to explain transition risk to the company's executive members:

How should the CRO rank the reference scenarios from lowest level of transition risk to highest level of transition risk?

• A. Lowest = X; Highest = Y
• B. Lowest = W; Highest = Z
• C. Lowest = Z; Highest = W
• D. Lowest = Y; Highest = X

The CRO at a commercial bank in China examines the negative impact of climate-related physical risk on clothing manufacturer cash flows that subsequently lead to higher credit risk.
The CRO observes which event leading to increased credit risk from climate physical risk?

• A. Decrease in production capacity due to higher labor absenteeism
• B. Rising costs of outdated manufacturing equipment write-offs
• C. Disruptions in the raw material supply due to climate adaptation
• D. Higher costs of adaptation to stricter new low-carbon standards

A prominent institutional investor forms a committee to support global investments to achieve net zero GHG emissions by 2050. To inform this investment strategy, the committee relies on the IEA Net-Zero Scenario.
How should the committee proceed with investments to align with IEA milestones?

• A. Invest in electric vehicles sufficiently to help make electric vehicles 30% of global vehicle sales by
  2030.
• B. Invest in energy infrastructure sufficiently to ensure all new buildings are "zero-carbon-ready" by 2050.
• C. Divest coal assets sufficiently to support a phase-out of all coal plants in advanced economies by 2030.
• D. Divest nuclear energy assets sufficiently to increase solar and wind energy shares of global energy production to 50% by 2050.