WorksheetsESG and climate risk in finance
Total questions: 10
Worksheet time: 5mins
Which of the following is NOT a characteristic of sustainable finance?
It promotes clear and complete disclosure of financial and non-financial information.
It focuses on ESG factors, but does not consider profitability issues.
It can channel funds to projects aimed at alleviating poverty.
It has a long-term perspective.
Which of the following is a common characteristic of CSR and ESG?
Both take into account sustainability issues.
Both use quantitative metrics and clearly measurable objectives.
Both are compulsory in many developed countries.
Both concepts are equally popular nowadays.
What are the current sustainable development priorities?
Corporate Social Responsibility and Socially Responsible Investing.
The Millenium Development Goals and the Paris Agreement.
The Sustainable Development Goals and the Paris Agreement.
The Kyoto Protocol and the Sustainable Development Goals.
Which of the following is NOT a sustainable development goal targeted to be achieved by 2030?
Gender equality.
Zero hunger.
Space research.
Good health and wellbeing.
What is the main goal of the Paris Agreement?
Reduce greenhouse gas emissions by 50% by 2030.
Eliminate the use of fossil fuels by 2050.
Increase reforestation by 25% by 2040.
Limit the global temperature increase to less than 2 °C above pre-industrial levels.
Which of the following is true about the ESG rating agencies?
They provide information about the financial performance of corporations.
They consider stakeholder interests, such as employees, suppliers, customers, local community or the environment.
They are now less important than in the past.
Currently, there is only one ESG rating agency, which is called MSCI.
How can the banking sector contribute to the achievement of the Sustainable Development Goals?
By financing industries that are aligned with the objectives of the energy transition.
By offering women´s microcredit in developing areas.
By channeling funds towards socially responsible industries.
All the answers are correct.
ESG strategies might benefit banks in terms of:
Increased market volatility.
Lower transparency requirements.
Less need for financial innovation.
Better risk management.
If climate risks deteriote the ability of borrowers to repay loans, it will affect more directly:
The credit risk of banks.
The operational risk of banks.
The legal risk of banks.
The transition risk of banks.
Regarding banks´exposure to climate risks:
It can be quantified through well-defined and standard measures.
It only depends on the home country of the banks.
We can use the carbon-weighted Herfindahl index to analyze banks´ exposure to transition risks.
It is not very relevant because banks hardly generate carbon footprint.
