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Portfolio Temperature Alignment Assessment Quiz
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Portfolio Temperature Alignment Assessment Quiz

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Questions and Answers

Which indicator measures the GHG emissions directly produced by the investee companies?

  • Scope 1 GHG emissions (correct)
  • Carbon footprint
  • Share of non-renewable energy consumption and production
  • GHG intensity of investee companies
  • Which indicator represents the total GHG emissions, including all scopes, of the investee companies?

  • GHG intensity of investee companies
  • Total GHG emissions (correct)
  • Exposure to companies active in the fossil fuel sector
  • Energy consumption intensity per high impact climate sector
  • Which indicator assesses the share of investments in companies active in the fossil fuel sector?

  • GHG intensity of investee companies
  • Share of non-renewable energy consumption and production
  • Emissions to water
  • Exposure to companies active in the fossil fuel sector (correct)
  • Which indicator compares the share of non-renewable energy consumption to renewable energy consumption of the investee companies?

    <p>Share of non-renewable energy consumption and production</p> Signup and view all the answers

    Which indicator measures the energy consumption per million EUR of revenue of investee companies in high impact climate sectors?

    <p>Energy consumption intensity per high impact climate sector</p> Signup and view all the answers

    Which indicator evaluates the share of investments in investee companies negatively affecting biodiversity-sensitive areas?

    <p>Activities negatively affecting biodiversity-sensitive areas</p> Signup and view all the answers

    Which aspect is encompassed under environmental reporting in the Corporate Sustainability Reporting Directive (CSRD)?

    <p>Biodiversity</p> Signup and view all the answers

    What does the French Energy & Climate Law outline specific reporting requirements for?

    <p>Entities with over 500M€ in assets</p> Signup and view all the answers

    What are the core components of Life Cycle Assessment (LCA)?

    <p>Goal and scope definition, life cycle inventory, life cycle impact assessment</p> Signup and view all the answers

    What is a strength of Life Cycle Assessment (LCA) as a methodology for environmental impact evaluation?

    <p>Metrics-based approach, life-cycle orientation, and multi-criteria assessment</p> Signup and view all the answers

    What does Life Cycle Assessment (LCA) serve as?

    <p>A decision-making tool to identify environmental issues and improvement possibilities</p> Signup and view all the answers

    What does LCA help prevent and assess?

    <p>Burden shifting and the eco-friendliness of options</p> Signup and view all the answers

    What are the stages of the LCA process?

    <p>Goal and scope definition, inventory analysis, impact assessment, and interpretation</p> Signup and view all the answers

    Which standards outline the framework for LCA?

    <p>ISO 14040 and 14044</p> Signup and view all the answers

    What does the goal and scope definition encompass?

    <p>Product system, functional unit, system boundaries, impact categories, data requirements, and type of critical review</p> Signup and view all the answers

    What is evaluated in the life cycle inventory?

    <p>Different flows, including secondary data from recognized sources and primary data from specific measurements and operational technical specifications</p> Signup and view all the answers

    What are the common problems in LCA?

    <p>Continuous development of databases, need to adapt existing processes, and aligning operationally measured data with database information</p> Signup and view all the answers

    What does the LCA process aim to provide insights into?

    <p>Comparative claims, areas for improvement, and product footprints</p> Signup and view all the answers

    What are the components included in the Life Cycle Assessment (LCA) framework?

    <p>Goal and scope, functional unit, system boundaries, inventory analysis, and impact assessment</p> Signup and view all the answers

    Which impact categories are covered by the EF3.0 LCIA method in LCA?

    <p>Climate change, human health, ecosystems, and natural resources</p> Signup and view all the answers

    What are the debates around LCA related to?

    <p>Issues with data quality, uncertainty of impact methods, regional differentiation, and unaccounted social or environmental impacts</p> Signup and view all the answers

    What causes data uncertainty in LCA?

    <p>Measurement or collection methods, leading to known or undefined uncertainties</p> Signup and view all the answers

    How is the data quality in LCA affected?

    <p>By uncertainties in primary data used for databases and deviations from reality due to nonspecific processes</p> Signup and view all the answers

    What do impact methods in LCA use?

    <p>Statistical models with varying precision and deviations from observed reality</p> Signup and view all the answers

    What is the focus of the study's assessment on investment portfolio temperature alignment?

    <p>Measuring the alignment of portfolios with low-carbon trajectories or temperature goals</p> Signup and view all the answers

    What did the report find about the methods used by investors and data providers for assessing temperature alignment?

    <p>They can yield widely different results for the same portfolio</p> Signup and view all the answers

    What does the report emphasize about the assessment of temperature alignment?

    <p>It is more of an art than a science at the moment</p> Signup and view all the answers

    What did the analysis of the Euronext LC100 and SBF120 indices reveal?

    <p>The relationship between temperature scores and science-based targets</p> Signup and view all the answers

    What is the regulatory context for the study's assessment of investment portfolio temperature alignment?

    <p>European and French regulations, with a focus on the Taxonomy</p> Signup and view all the answers

    What does the report highlight about the Implied Temperature Rise metric?

    <p>Careful consideration is important as this type of assessment is not an end or sufficient in itself</p> Signup and view all the answers

    Study Notes

    Assessing Investment Portfolio Temperature Alignment

    • The entire value chain of a company includes direct emissions, upstream emissions, and downstream emissions.
    • The study aims to increase transparency on methods available to investors to measure the alignment of their portfolios with low-carbon trajectories or temperature goals.
    • The report tested eleven methods on the Euronext LC100 and SBF 120 indices in 2018 and 2019.
    • Participating organizations in the study include Arabesque S-Ray, Carbon4 Finance, CDP-WWF, EcoAct, and others.
    • The study found that there is a wide range of methods used by investors and data providers, which can yield widely different results for the same portfolio.
    • The study emphasizes that the assessment of temperature alignment is more of an art than a science at the moment.
    • The report includes a non-exhaustive list of questions that existing methods can answer regarding portfolio temperature alignment.
    • The analysis of the Euronext LC100 and SBF120 indices revealed the relationship between temperature scores and science-based targets.
    • The regulatory context for the study includes European and French regulations, and there is a focus on the Taxonomy, with a definition, implications, and a case study.
    • The report highlights the importance of careful consideration with the Implied Temperature Rise metric, as this type of assessment is not an end or sufficient in itself.
    • The report aims to provide decision-makers and practitioners with a good understanding of temperature alignment assessments and how they are built.
    • The study emphasizes the need for decision-makers to carefully consider the methods and frameworks available to measure the alignment of their investment portfolio with a temperature trajectory.

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    Description

    "Assessing Investment Portfolio Temperature Alignment" quiz covers key insights from a study on methods available to investors to measure portfolio alignment with low-carbon trajectories or temperature goals. It includes findings on the wide range of methods used, analysis of indices, and regulatory context. Participants can test their understanding of temperature alignment assessments and decision-making considerations for investment portfolios.

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