Exam SCR topic 1 question 42 discussion

Correct Answer is A: Unlike stranded assets due to transition risk, which are likely to be more concentrated in the energy and industrial sectors, stranding due to physical risk can occur across nearly all sectors..

correct is D as it says "the majority". A cannot be for sure as to become stranded assets require exposure and vulnerability assessment

A is a better answer. D is vague and not necessarily true.

Use of scenario analysis for physical risks is significantly different from transition risk scenario planning in multiple ways. However, a second important difference is that, because the climate system responds on a lag, physical impacts until about 2050 are largely “baked in” by current emissions, so emissions trajectories do not matter on the timescale of the next few decades, which is what the majority of policymakers, firms, and investors limit themselves to (Four Twenty Seven, 2019).