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SCR Exam - Question 21

In response to a survey showing consumers consider sustainability a key factor in purchasing decisions, a group of cosmetics companies announce a collaboration to develop an environmental impact assessment and sustainability framework for cosmetics products. The framework enables customers to evaluate the environmental impact of products they purchase. The framework draft includes definitions of climate, green, and sustainable finance.

Which of the following definitions is appropriate for the proposed framework?

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Correct Answer: B

Green finance refers to sustainable finance focused on environmental risks and opportunities. This definition includes a broader scope beyond just climate change, such as waste management, water usage, conservation of natural habitats, and mitigating biodiversity loss. Therefore, option B is the most appropriate for the proposed framework as it encompasses a wide range of environmental factors.

Discussion

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MatMat2023Option: B
Oct 18, 2023

Both B and D are correct in line with section 5.1

qingyang111000Option: B
Apr 12, 2024

Green finance refers to sustainable finance focused on environment-related risks and opportunities— often, but not necessarily, climate change. Other topics falling under the “green” categorization can include waste management, water usage, conservation of natural habitats, and mitigating biodiversity loss. Climate finance refers exclusively to financial flows relating to climate change, whether mitigation or adaptation.