A sustainability analyst for a global food and beverage company tracks ESG metrics to report to investors. The analyst meets with company leaders of different business units to explain criteria and indicator types for each ESG component.
To address each component, which metrics will the analyst socialize with company leaders?
The key to addressing each ESG (Environmental, Social, Governance) component lies in identifying metrics that pertain to each of these three areas distinctly. Option A includes carbon dioxide emissions (an environmental metric), labor conditions of agricultural workers (a social metric), and board diversity (a governance metric). These metrics clearly and specifically represent each of the three ESG components, making it the most appropriate choice.
Why is B better than A. Question is poor
A is the correct option
A hits all three - Environmental, Social and Governance
In B, isn't it that both "adherence to code of ethics" and "risk management protocols" both belong to Governance component? A seems better.
SCR is tricky exam and we must examine all options minutely before choosing our option. A is incorrect as it only talks about labor conditions for agriculture workers thus ruling out other workers in value chain. Therefore this option must be ruled out. B is correct as it talks about EHS (labour conditions), Code of Ethics (governance), Risk Managment Protocols (Governance on all risks which includes physical as well as transition risks )
Agree with the B answer as it covers E, S and G, in a way that's broad enough for that case. Answer A on the other hand is narrowing to agriculture workers, carbon and board diversity which are sub-sets of applicable criteria in E, S and G