A public policy think tank releases a report on global decarbonization pathways. The report describes the relative contribution of each GHG to modern climate change and recommends focusing global efforts on CO2 reduction.
Why would the think tank make this recommendation?

• A. CO2 is responsible for approximately a 1.00 w/m2 increase in radiative forcing.
• B. CO2 atmospheric concentrations have increased by approximately 100 parts per billion.
• C. CO2 atmospheric concentrations have increased by approximately 1 part per billion.
• D. CO2 is responsible for approximately a 2.25 w/m2 increase in radiative forcing.

A federal regulator analyzes how the increasing frequency of natural disasters may impact the banking sector.
The regulator reviews and evaluates the potential for widespread climate events to simultaneously affect multiple financial institutions and drive cascading economic disruptions. What risk type is the regulator most likely evaluating?

• A. Counterparty
• B. Systemic
• C. Operational
• D. Concentration

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

A European commercial bank recently became a signatory to the UNEP FI PRB. To fulfill PRB commitments, the bank CRO emphasizes the need to holistically integrate ESG considerations into lending decisions to reduce long-term risk exposure. Which of the following strategies will the bank most likely adopt going forward?

• A. Assess social and governance risks prior to lending to high-yield industries.
• B. Launch a public relations campaign to highlight bank ESG initiatives.
• C. Integrate ESG risk assessments into credit evaluations for corporate clients.
• D. Expand bank green loan offerings to companies in the renewable energy sector.

A private equity fund invests in infrastructure development and agro-industrial projects. The fund hires a team of climate risk consultants to advise on investment structure and the potential climate risks to the fund. The team recommends data types and analytical tools to evaluate physical and transition risk impact at the company level.
How should the company evaluate company-level physical risk?

• A. Categorize carbon emissions as Scope 1, 2, or 3, and disclose corporate carbon footprints to data providers.
• B. Measure the degree of corporate alignment to opt-in initiatives like the Transition Pathway Initiative's Science-Based Targets.
• C. Develop company scores that combine proprietary methodologies with downscaled climate model data.
• D. Calculate CVaR to offer quantitative estimates of expected financial losses or gains from climate risks and opportunities.