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Exam SCR topic 1 question 26 discussion

Actual exam question from GARP's SCR
Question #: 26
Topic #: 1
[All SCR Questions]

In response to a survey showing consumers consider sustainability a key factor in purchasing decisions, a group of cosmetics companies announce a collaboration to develop an environmental impact assessment and sustainability framework for cosmetics products. The framework enables customers to evaluate the environmental impact of products they purchase. The framework draft includes definitions of climate, green, and sustainable finance.
Which of the following definitions is appropriate for the proposed framework?

  • A. Green finance refers exclusively to financial flows relating to climate change such as mitigation or adaptation.
  • B. Green finance refers to sustainable finance focused on environmental risks and opportunities.
  • C. Sustainable finance refers to public sector funding of projects relating to ESG and sustainable development.
  • D. Climate finance is a subset of green finance and broadly refers to any financial transaction that considers climate issues.
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Suggested Answer: B 🗳️

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qingyang111000
2 weeks, 6 days ago
Selected Answer: B
Green finance refers to sustainable finance focused on environment-related risks and opportunities— often, but not necessarily, climate change. Other topics falling under the “green” categorization can include waste management, water usage, conservation of natural habitats, and mitigating biodiversity loss. Climate finance refers exclusively to financial flows relating to climate change, whether mitigation or adaptation.
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MatMat2023
6 months, 2 weeks ago
Both B and D are correct in line with section 5.1
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