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.Increase renewable energy use to 20% by 2035 and to 50% by 2050.
• B.Engage multiple suppliers to expand commitment to emission reduction targets by 30% by 2030.
• C.Reduce emissions from purchased raw materials by 60% by 2030.
• D.Increase women representation in managerial positions to 33% by 2025 and to 50% by 2030.

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A technology company expands its sustainable offerings and develops a flight booking application that allows customers to offset a flight's carbon emissions. An analyst at the company researches climate agreements to inform the structure of the offsetting program.
How does the analyst describe the achievements and shortcomings of the agreements?

• A.Although COP1 (Berlin) ended with no binding treaty, it was the first COP to establish a goal that global warming remains below 2°C.
• B.The main achievement of COP15 (Copenhagen) was the creation of the IPCC, an influential scientific body that became the leading body in guiding subsequent climate agreements.
• C.COP3 (Kyoto) resulted in differentiated national responsibilities wherein developing countries were not subject to emissions reduction obligations, which disincentivized Annex 1 countries to take action.
• D.A shortcoming of COP21 (Paris) is that countries are legally obligated to annually submit nationally determined contributions (NDCs), and most have kept NDCs at unchanged levels.

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An ESG scorecard for sovereign debt issuers has the following information:
Country 1No carbon policy and high corruption risk
Country 2High-level carbon policy and low corruption risk
Country 3Detailed carbon policy and low corruption risk
Based only on this information, the country with the lowest ESG risk is:

• A.Country 2
• B.Country 3
• C.Country 1.

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Which of the following greenhouse gases (GHGs) has the longest lifetime in the atmosphere?

• A.Methane
• B.Fluorinated gas
• C.Carbon dioxide

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

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