Ch04. Sustainability and Climate Policy, Culture, and Governance

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What motivated investors to encourage firms to limit their emissions?

Decreased profitability due to high emissions

Public pressure and reputational risk

Corporate strategy, moral responsibility, and long-term viability (correct)

Government regulations in their operating jurisdictions

What is the main goal of the Race to Net Zero initiative?

To create a new climate change regulatory framework

To promote sustainable investing in the financial sector

To develop a global carbon pricing mechanism

To bring together businesses and investors to accelerate the economic transition (correct)

What is the name of the global initiative that consolidates net-zero and Paris-aligned financial groupings?

Glasgow Financial Alliance for Net Zero (correct)

Glasgow Financial Alliance for Climate Action

Net Zero Financial Coalition

Paris Agreement Financial Initiative

What is the role of asset owners in the net-zero transition?

To position themselves as forerunners in the net-zero transition Signup and view all the answers

What is the name of the initiative that brings together cities and regions to accelerate the economic transition?

Race to Net Zero Signup and view all the answers

Why have some firms not made net-zero commitments?

They are not operating in jurisdictions with climate change regulations Signup and view all the answers

What is the primary goal of the Climate Action 100+ initiative?

To pressure the world's largest emitters to align with climate goals through collective shareholder engagement Signup and view all the answers

What is the collective goal of the Net Zero Asset Owners and Net Zero Asset Managers Initiative?

To reach net-zero greenhouse gas emissions by 2050 and align with a 1.5°C scenario Signup and view all the answers

Which organization provides guidance on understanding and managing the financial risks of climate change?

Australian Prudential Regulation Authority Signup and view all the answers

What is the purpose of the Glasgow Financial Alliance for Net Zero?

To bring together financial sector initiatives focused on net-zero greenhouse gas emissions by 2050 Signup and view all the answers

How many investors are part of the Climate Action 100+ initiative?

575 investors with over USD 54 trillion in assets under management Signup and view all the answers

What is the target year for the net-zero greenhouse gas emissions goal of the initiatives mentioned?

2050 Signup and view all the answers

What is the estimated impact of full implementation of non-state and subnational actor climate commitments on emissions by 2030?

A 3.8-5.5% reduction in emissions Signup and view all the answers

What has been the shift in the importance of climate change for corporations and financial institutions over the past decade?

From a peripheral issue to a key consideration Signup and view all the answers

What is the estimated number of cities that have made climate commitments, according to the assessment mentioned in the text?

Around 6000 cities Signup and view all the answers

What is the role of America’s Pledge in the context of climate policy?

A good example of public-private sector collaboration in climate coalitions Signup and view all the answers

What is the stance of Singapore's proposed ASEAN taxonomy on fossil fuels?

It considers them to have a 'significant role' in the region's energy supply. Signup and view all the answers

What is the driving force behind the development of policy-led sustainability classifications?

Regulatory bodies seeking to promote sustainable investments. Signup and view all the answers

Which region has made the most progress in creating public policy that defines sustainable investments?

The European Union. Signup and view all the answers

What is the primary goal of initiatives like the Operating Principles for Impact Management (OPIM)?

To develop a framework for impact management in the financial sector. Signup and view all the answers

What is the likely outcome of the trend towards policy-led sustainability classifications?

Increased clarity and consistency in sustainable investment definitions. Signup and view all the answers

What is the role of corporate and investor groupings in promoting sustainable investments?

They drive best practices in sustainable investments and promote climate-friendly policies. Signup and view all the answers

Which international organization was one of the first to develop explicit sustainability, ESG, and climate investment policies?

International Finance Corporation (IFC) Signup and view all the answers

What has been a recent trend in financial-sector promotion and policymaking around financial centers?

Incorporation of green elements and climate risk considerations Signup and view all the answers

What is the primary goal of institutions with a double bottom line mission?

To support socioeconomic development Signup and view all the answers

What type of reports has the IFC been writing about since before 2015?

Reports on climate risk Signup and view all the answers

What is a key aspect of public policy promoting the adoption of green finance?

Incorporating climate risk in financial decisions Signup and view all the answers

What is the ultimate goal of institutions promoting the adoption of green finance?

To promote socioeconomic development Signup and view all the answers

What was the first type of bond issued by the EIB in 2007 pertaining to climate-related issues?

Climate awareness bond Signup and view all the answers

Which institution has proposed guidelines on environmental risk management for insurers in Singapore?

Monetary Authority of Singapore Signup and view all the answers

What is the primary objective of the Centre for Green Finance established by the Hong Kong Monetary Authority?

To spread best practices and help to green Hong Kong's financial services industry Signup and view all the answers

What is the name of the UK-based institution established in 2019 to promote the growth of a green finance ecosystem?

Green Finance Institute Signup and view all the answers

Which institution has been discussing the financing gap on climate change as early as 2010?

International Finance Corporation Signup and view all the answers

What is the primary objective of the TCFD Consortium of Japan?

To facilitate dialogue between investors and companies on climate risk disclosure Signup and view all the answers