Question #5Topic 1

A global cosmetics company surveys consumers. The survey reveals close to 75% of
consumers indicate sustainability is an important issue and are willing to change
shopping habits to reduce environmental impact. The company responds by
establishing a sustainability framework. As part of the process to implement this
framework, a company sustainability analyst identifies sustainable investment and
disclosure practices.
Which recommendation will the analyst likely make to implement a company
sustainability framework?

 A. Follow NGFS sustainability best practices and verify company products and
activities are considered sustainable through NGFS recommended voluntary
disclosures.
 B. Use the EU Taxonomy for classifying products as “green” when doing business in
the EU market but develop new classification systems for jurisdictions outside the EU.
 C. Conduct internal audits annually and disclose any greenwashed product findings to
government green finance taskforces.
 D. Incorporate mandatory disclosures and marketing requirements to ensure claims
about sustainable products are fair and not misleading.

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Correct Answer: D 🗳️

Question #6Topic 1
To improve sustainability, a railroad and transportation services company will
revitalize its rail network by installing an operating system that reduces idle time. A
reduction in idle time will decrease GHG emissions. To finance this plan, the
company will issue green bonds beginning in 2024. The company sustainability
director develops sustainability objectives and eligibility criteria to communicate to
investors.
The director is fulfilling which core component of the Green Bond Principles?

 A. Process for project evaluation and selection

 B. Reporting
 C. Management of proceeds
 D. Use of proceeds

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Correct Answer: A 🗳️