Environmental Factors

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Which of the following best describes climate change adaptation?

Taking measures to adjust to the impacts of climate change

What does the term 'biodiversity loss' refer to?

The loss of species and ecosystems

What is the purpose of carbon pricing?

To incentivize businesses to reduce greenhouse gas emissions

Which of the following is true about global greenhouse gas emissions in 2016?

Global greenhouse gas emissions were 49.4 billion tonnes CO2eq

What is the main goal of limiting global warming?

To achieve a desired global average temperature

What were the preindustrial levels of atmospheric CO2?

278 ppm

Which gas is the most significant contributor to the warming effect?

Carbon dioxide

What is the main source of carbon dioxide emissions?

Energy

What is the effect of gases in the atmosphere that absorb and reradiate heat back to the Earth's surface?

They cause global warming

Which of the following actions is considered climate change adaptation?

Taking measures to function better in a warming world

What is the meaning of climate change mitigation?

Actions that reduce the added warming of the earth caused by human actions

Which of the following is an example of an environmental factor with a material financial impact on investments?

Resilience measures

What is the role of environmental decision making for investors?

To support the pursuit of profitable investments

What is a consequence of the increasing harvesting of trees for forest products?

Increased pressure to find and exploit new sources

What is the idea behind the circular economy?

All materials are used and reused multiple times

What is a major challenge for policymakers and investors in the area of environmental issues?

Differing time horizons for the consequences of human actions

What are some impacts of environmental change?

Both short-term acute manifestations and long-term chronic patterns

What is the purpose of the notion of 'planetary boundaries'?

All of the above

What is the importance of precautionary judgments in environmental decision making?

Both help to navigate uncertainty and address catastrophic risks

Which of the following is a key environmental issue discussed in this chapter?

All of the above

What are the six planetary boundaries that have already been crossed as a result of human activity?

Climate change, biosphere integrity, land-system change, freshwater, ocean acidification, altered biogeochemical cycles

What is the main man-made driver of the warming of the planet?

Greenhouse gases (GHGs)

What are the different dimensions of climate change discussed in the chapter?

Science, economics, society, politics, and moral and ethical questions

What is the purpose of climate scenario analysis?

To evaluate the systemic impact of climate risks on the financial system

Which greenhouse gas has seen a significant increase in atmospheric levels since preindustrial times?

Carbon dioxide (CO2)

What is the role of the natural world in removing carbon dioxide from the atmosphere?

Maintaining stable climate

What is the main determinant of the extent of global warming?

The amount of GHGs remaining in the atmosphere

Which of the following is a key environmental issue?

Depletion of natural resources

What is the main consequence of the increasing harvesting of trees for forest products?

Pressure on natural forest resources

What is the main goal of limiting global warming?

To prevent dangerous and potentially catastrophic consequences for all life on Earth

What are some causes of environmental change?

All of the above

Which of the following is an example of a key concept relating to climate change?

Climate change mitigation

What is the purpose of the Task Force on Climate-Related Financial Disclosures (TCFD)?

To accelerate sustainable finance

What is the main objective of climate change adaptation?

To adapt human practices to function better in a warming world

Which of the following is NOT mentioned as a way in which environmental factors are already affecting behaviors, sectors, and institutions?

Support of projects and activities with a positive environmental impact

What is the main driver of the warming of the planet?

Rising emissions of heat-trapping greenhouse gases (GHGs)

Which of the following is an example of a local manifestation of climate change?

More frequent and/or intense tropical cyclones

What are the six planetary boundaries that have already been crossed as a result of human activity?

Climate change, loss of biosphere integrity, land-system change, freshwater, novel entities, altered biogeochemical cycles

Which of the following gases has the highest concentration in the atmosphere and is the most significant contributor to the warming effect?

Carbon dioxide

What is the global warming potential of methane compared to carbon dioxide over a century?

30 times stronger than carbon dioxide

Which economic sector is responsible for the highest share of greenhouse gas emissions?

Industry

What is the main source of carbon dioxide emissions?

All of the above

Which of the following statements about the impacts of environmental change is true?

Environmental change can occur at both short-term, acute scales and longer-term, chronic scales.

What is the main difference between the causes of environmental change?

The harm persists in some cases but not in others after the removal of a stressor.

What is the purpose of the notion of 'planetary boundaries'?

To describe boundaries to processes that regulate the stability and resilience of the earth operating system.

What is the role of environmental decision making for investors?

To navigate uncertainty and make informed investment decisions.

True or false: Climate change adaptation refers to actions taken to reduce or prevent the negative impacts of climate change.

False

True or false: The Task Force on Climate-Related Financial Disclosures (TCFD) aims to promote transparency and disclosure of climate-related financial risks and opportunities.

True

True or false: The global warming potential of methane is 30 times stronger than carbon dioxide over a century.

True

The level of global greenhouse gas emissions in 2016 was 49.4 billion tonnes CO2eq.

True

The natural world is responsible for removing carbon dioxide from the atmosphere.

True

Preindustrial levels of atmospheric CO2 were 278 ppm.

True

True or false: Climate change is a simple issue with only one dimension to consider.

False

True or false: The Arctic is warming at a rate that is more than three times faster than the global average.

True

True or false: Rising emissions of greenhouse gases are the main driver of the warming of the planet.

True

True or false: The pursuit of environmental sustainability can only benefit financial interests and not have any negative consequences.

False

True or false: Climate change adaptation refers to the actions taken to reduce the added warming of the earth caused by human actions.

False

True or false: Climate resilience measures are adaptation actions that are able to function even though the climate is changing.

True

True or false: Environmental decision making for investors requires considering factual considerations about what is likely to happen and normative considerations about what conditions of the world are desirable or acceptable.

True

True or false: The European Green Deal is a policy introduced to accelerate sustainable finance.

True

True or false: The impacts of environmental change only occur at short-term, acute levels and do not have long-term, chronic patterns.

False

True or false: If a stressor is removed, the associated harm will always persist.

False

True or false: Regrowing forests can be considered as a solution to environmental change.

False

True or false: The notion of 'planetary boundaries' is used to describe boundaries to processes that regulate the stability and resilience of the earth operating system.

True

True or false: Economic activities that extract fuels and raw materials usually leave exploited planetary systems more capable of providing goods and services in the future.

False

True or false: The concentration of metals in current metal ores is higher than when these ores were first mined.

False

True or false: Increasing harvesting of trees for forest products has no impact on natural forest resources.

False

True or false: The circular economy aims to use and reuse all materials multiple times, reducing waste and pollution.

True

True or false: Carbon dioxide is the most significant contributor to the warming effect because of its higher concentration in the atmosphere.

True

True or false: Methane has a higher global warming potential than carbon dioxide.

True

True or false: More than half of the CO2 emissions since 1751 have occurred in the last 30 years.

True

True or false: CO2 emissions from the burning of fossil fuels represent around two-thirds of all greenhouse gas emissions.

True

True or false: Climate change mitigation refers to the actions taken to adapt to the impacts of climate change?

False

True or false: The systemic impact of climate risks on the financial system is not a consideration for businesses?

False

True or false: The pursuit of a circular economy can help alleviate pressures on natural resources?

True

True or false: Environmental risks have continued to gain prominence, generating heightened concern worldwide.

True

True or false: Gaining an appreciation of evolving policies, technologies, and consumer preferences regarding sustainability can support the pursuit of profitable investments.

True

True or false: The term climate change refers to the changes in the earth's systems that determine the climate.

True

True or false: Climate resilience measures are adaptation actions that are able to function even though the climate is changing.

True

True or false: Climate change is a simple issue with clear causes and effects.

False

True or false: The warming of the planet is primarily caused by natural climate variability.

False

True or false: Rising emissions of greenhouse gases lead to a uniform warming of the planet.

False

True or false: The impacts of climate change are limited to global average temperature increases.

False

What is the main driver of the warming of the planet?

False

True or false: Increasing the level of atmospheric CO2 leads to a stable climate conducive to agriculture and urban civilizations.

False

True or false: The natural world removes carbon dioxide from the atmosphere at the same rate as human activities add it.

False

True or false: Economic activities that extract fuels and raw materials usually leave planetary systems more capable of providing goods and services in the future.

False

True or false: The depletion of natural resources and the trade-offs between present costs and future benefits have been central topics in economics since its inception.

True

True or false: The burning of fossil fuels and other forms of pollution are jeopardizing the stability of the climate system, which could have potentially catastrophic consequences for all life on earth.

True

True or false: The pursuit of environmental sustainability can have negative consequences and not just benefit financial interests.

True

True or false: Carbon dioxide (CO2) is the most significant contributor to the warming effect, because of its higher concentration in the atmosphere?

True

True or false: Methane has a global warming potential that is 30 times stronger than carbon dioxide over a century?

True

True or false: The greenhouse effect is similar to the effect of glass windows in a car, allowing visible light energy in but blocking radiant heat from leaving?

True

True or false: The accelerated burning of fossil fuels since the industrial revolution has contributed to the increase in greenhouse gas emissions, with more than half of CO2 emissions occurring in the last 30 years?

True

True or false: Environmental change can occur at different scales in time and space.

True

True or false: The harm caused by a stressor can persist even after the stressor is removed.

True

True or false: Mitigation is the same as finding a solution to a problem.

False

True or false: "Planetary boundaries" are limits to processes that regulate the stability and resilience of the earth operating system.

True

Study Notes

Key Concepts Related to Climate Change and Environmental Issues

  • Environmental factors have a material financial impact on investments and are gaining prominence worldwide.
  • Climate change mitigation refers to actions that reduce the added warming caused by human actions.
  • Climate change adaptation involves actions taken to adapt human practices to a warming world.
  • Climate resilience measures are adaptation actions that can function despite a changing climate.
  • Economic activities, such as resource extraction and urban development, are depleting natural resources.
  • Increased water demand and decreased supply due to climate change are putting pressure on water resources.
  • Urban development and energy projects are decreasing agricultural and forest land, leading to biodiversity loss.
  • Industrial processes release pollution, while the circular economy aims to use and reuse materials multiple times.
  • Environmental sustainability seeks to meet present needs without compromising the ability to meet future needs.
  • The use and depletion of natural resources and trade-offs between present costs and future benefits are central to economics.
  • The scientific community has warned of the consequences of economic activities, such as burning fossil fuels and land development.
  • Increasing levels and scope of corporate disclosure and policies reflect growing awareness of environmental and climate impacts.

Explore essential concepts related to climate change, environmental factors, adaptation, resilience, economic activities, water resources, biodiversity loss, pollution, circular economy, and environmental sustainability.

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