Sustainability and Climate Risk (SCR) — Question 23

A multinational food and beverage corporation has growing concerns that CO2 and other GHGs in the atmosphere have a negative effect on agricultural productivity. The corporation is subject to higher costs and scarce availability for commodities necessary for its supply chain.
The corporation will disclose this scenario under which climate-related risk type?

Answer options

• A. Market
• B. Resilience
• C. Chronic
• D. Resource efficiency

Correct answer: C

Explanation

The correct answer is C, Chronic, because this situation describes long-term environmental changes that impact agricultural productivity over time. The other options do not accurately represent the enduring nature of the risks associated with increasing greenhouse gases; Market refers to fluctuations in demand, Resilience relates to the ability to adapt to changes, and Resource efficiency focuses on optimizing resource use.