Question #23Topic 1

At an international finance bank, a lack of staff clarity regarding sustainability,

climate, and ESG definitions led to overlapping and inefficient initiatives. To minimize
inefficiencies, the sustainability department develops new terminology for use across
the bank.
What should the department include in this new terminology?

 A. Sustainability issues fall exclusively within climate change impacts.

 B. ESG and sustainability risks are completely interchangeable.
 C. ESG risks are broader than all sustainability risks.
 D. Sustainability should include all governance and social risks. Most Voted

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Correct Answer: C 🗳️

Question #24Topic 1
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. Disruptions in the raw material supply due to climate adaptation
 C. Rising costs of outdated manufacturing equipment write-offs
 D. Higher costs of adaptation to stricter new low-carbon standards

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Correct Answer: B 🗳️