Exam SCR topic 1 question 28 discussion

Actual exam question from GARP's SCR

Question #: 28
Topic #: 1

A national regulator develops a new taxonomy for environmentally sustainable activities and policies. The taxonomy will provide clarity for companies, capital markets, and policymakers on sustainable activities. During the development process, regulators survey taxonomies used across various jurisdictions and decide to model after the EU Taxonomy.
Which characteristic of the EU Taxonomy will the regulator most likely implement in the new taxonomy?

A. Emphasize fossil-fuel activities that play a significant role in the region’s energy supply
B. Assess the impact of fund management on environmental and climate-related aspects
C. Set performance thresholds for economic activities that can be considered green
D. Guide sectoral coalitions of experts to broaden and promote the growth of a green finance ecosystem

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Suggested Answer: C 🗳️

by qingyang111000 at April 12, 2024, 8:58 a.m.

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qingyang111000

2 months, 2 weeks ago

Selected Answer: C

"The EU Taxonomy, first published in draft format in March 2020, sets performance thresholds (referred to as “techni-cal screening criteria”) for economic activities, by sector and subsector. To count as “sustainable,” activities must (a) make a substantive contribution to one of six environmental objectives, (b) do no significant harm to the other five, and (c) meet minimum safeguards"

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Exam SCR topic 1 question 28 discussion

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