The document discusses a diversified industrial company that is embarking on a climate transition strategy to invest in a more fuel-efficient airline fleet. To finance this investment, the CFO analyzes sustainable finance instruments and must recommend the most suitable option. The best choice is a green bond, as the proceeds can be clearly tied to the specific project of acquiring more fuel-efficient aircraft.
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SCR Q&a 18
The document discusses a diversified industrial company that is embarking on a climate transition strategy to invest in a more fuel-efficient airline fleet. To finance this investment, the CFO analyzes sustainable finance instruments and must recommend the most suitable option. The best choice is a green bond, as the proceeds can be clearly tied to the specific project of acquiring more fuel-efficient aircraft.
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Question #35Topic 1
A diversified industrial company embarks on a climate transition strategy to invest in
a more fuel-efficient airline fleet. To finance the investment, the CSO analyzes sustainable finance instruments and recommends instruments most suitable to issue. Which of the following financial instruments should the CSO recommend and why?
A. A sustainability-linked bond for the purpose of financing a company-wide transition
strategy. B. A social bond as it offers more flexibility because there is no external review requirement. C. A green bond because the use of proceeds can be clearly identified and tied to a particular project. D. A sustainable bond so the company will benefit from favorable pricing from the terms linked to the corporate sustainability objective.
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Correct Answer: C 🗳️
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D (100%) Question #36Topic 1 A Central American country signs the Paris Agreement to align actions and policies to keep global temperature rise below 1.5°C. The country’s environmental agency develops a nationally determined contribution plan that includes domestic, economy- wide, and sector-specific policies. The power generation sector is most comprehensively covered by the plan. Which policy included in the plan targets the power generation sector?
A. Green/low carbon public procurement
B. Renewable portfolio standard C. Emission trading scheme D. Carbon tax
Climate-Related Financial Disclosures 2021: Progress Report on Implementing the Recommendations of the Task Force on Climate-Related Financial Disclosures