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A large insurance company in South America expands use of climate scenario analysis. The company used RCPs in previous scenario analyses but now hires an actuary with climate expertise to incorporate SSPs in this process.
How can the actuary advise the insurance company use SSPs going forward?
A city planning commissioner consults with climate scientists to assess the impact of sea level rise on strategic infrastructure projects. The scientists discuss several climate model projections and indicate sea level rise has a fundamental relationship to GHG emissions, regardless of a specific warming scenario.
How should the scientists describe this relationship?
A climate analyst at a research institution analyzes climate risk for various companies. The analyst examines transmission channels of climate risk as part of the risk identification process.
Which of the following examples can the analyst use to describe an operational risk transmission channel?
A large country joins the Paris Agreement and directs the national environmental department to disseminate new policies and goals to relevant federal agencies. Most agencies are familiar with past climate agreement principles and protocols but not those of the Paris Agreement.
The environmental department should educate federal agencies on what feature of the Paris Agreement?
A European bank surveyed its most prominent clients to assess interest in sustainability-linked loans (SLLs) and green loans. The survey came after a recent study showed higher profitability rates of SLLs and green products than classical banking products. After positive feedback, the bank decides to introduce SLLs and green loans. The bank’s sustainability loan officer writes a new loan product guideline for corporate clients that explains SLLs and green loans.
How will the bank officer describe these loan types?
An EU vehicle braking system manufacturer implements a new sustainability framework for SLBs to finance projects with environmental and social benefits. The company sustainability team prepares a new SLB and submits the bond to an external reviewer for assessment. The bond contains four KPIs:
1. Scope 1 CO2 emissions
2. Supplier engagement on GHG emission reduction
3. Percentage of renewable energy used
4. Percentage of women in managerial roles
The bond benchmark year is 2022 and the bond will mature in 2030 Which of the following SPTs did the reviewer find aligns with the core components of SLB Principles?
A solar panel manufacturing company for renewable energy systems makes a 2040 net-zero commitment. The company sustainability director references the COSO ERM framework to inform the company’s long-term growth strategy. Which approach will the director most likely use to effectively assess the impact of transition risk on the business strategy?
A multi-industry consortium convenes risk managers from across the globe to discuss climate impacts on global trade and economic growth. A climate modeler leads a discussion on macro-level physical changes in the Earth’s atmosphere and highlights two climatic trends that demonstrate an inverse relationship in recent decades.
What two trends does the modeler highlight?