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Sustainability & Taxonomy

Total questions: 11

Worksheet time: 24mins

Name
Class
Date
1.

Which of the following is NOT a potential use of sustainability taxonomies by banks and financial institutions?

a)

Enhancing the efficiency of green lending and funding operation

b)

Reducing uncertainty and reputational risks

c)

Increasing transaction costs and the fees chargable to clients

d)

Encouraging disclosure to sustainable investments as required by regulators

2.

What is a significant benefit of having a harmonized sustainability taxonomy?

a)

It increases the complexity of assessing green credentials

b)

It restricts the flow of green capital across national borders

c)

It allows for a substantial reduction in the value of green bond markets

d)

It enables capital to be directed towards the highest impact projects

3.

Which of the following best describes the purpose of using taxonomies in sustainable finance?

a)

To reduce the cost of financial transactions in environmental projects

b)

To set guidelines to identify which assets/activities are low-carbon

c)

As a marketing tool for promoting financial products as 'green'

d)

To provide a legal framework for environmental conservation

4.

Which of the following element is NOT a key driver when designing a sustainability taxonomy?

a)

Scope (e.g. national or vs internationally applicable)

b)

End users (e.g. green bond issuers)

c)

Target (e.g.asset vs. entity vs. activity)

d)

Output (e.g. data availability & disclosure)

5.

The Paris Agreement 2015 & the UN 2030 Agenda for Sustainable Development: Genuine or Facade?

4 lines
6.

Developed countries orchestrate the Climate Change Agenda to control the progress of developing countries. Do you agree?

a)

YES

b)

NO

7.

To be considered as EU Taxonomy compliant, a green investment must

a)

obey ethical taxation practices

b)

violate labour rights

c)

engage in corruption and bribery practices

d)

perpetrate anti-competition practices

8.

The European Taxonomy is the first taxonomy established in the world

a)

TRUE

b)

FALSE

9.

In China 2021 Project Catalogue, nuclear energy is considered as clean energy

a)

TRUE

b)

FALSE

10.

After 2021, natural gas & other fossil fuels cannot be used in projects that was funded by green bonds in China

a)

TRUE

b)

FALSE

11.

Outstanding green bonds approved before the publication of China 2021 Project Catalogue may follow earlier standards

a)

TRUE

b)

FALSE