Sustainability and Climate Risk (SCR) — Question 51

A technology company announces a goal of increasing recycling programs by 30% and reducing company carbon emissions by 50% by 2040. A climate risk analyst at the company develops a sustainability framework and identifies ways to measure company-level transition and physical risks.
Which of the following should the analyst use to measure company-level transition risk?

Answer options

• A. Corporate alignment scores
• B. Carbon intensity calculations
• C. ESG score comparisons
• D. Facility-level location

Correct answer: A

Explanation

The correct answer is A, as corporate alignment scores directly reflect how well the company's strategies align with sustainability goals, which is critical for assessing transition risks. Options B and C relate more to carbon output and sustainability comparisons, while option D focuses on location specifics rather than overall company-level transition risk.