CFA Institute Sustainable-Investing Question Answer
Which of the following is an example of a climate adaptation measure?
A.
Investment in wind energy
B.
Increased use of public transport
C.
Use of more drought-resistant crops
The Answer Is:
C
This question includes an explanation.
Explanation:
An example of a climate adaptation measure is the use of more drought-resistant crops.
Climate Adaptation: Climate adaptation refers to adjustments in practices, processes, and structures to mitigate potential damage or take advantage of opportunities associated with climate change.
Drought-Resistant Crops: Using more drought-resistant crops is a direct adaptation measure that helps agriculture withstand periods of reduced rainfall, thereby maintaining productivity and food security in the face of changing climate conditions.
Other Examples: While investment in wind energy (A) and increased use of public transport (B) are important climate actions, they are primarily considered climate mitigation measures aimed at reducing greenhouse gas emissions rather than adapting to existing climate impacts.
CFA ESG Investing References:
The CFA Institute’s materials on climate risk management highlight various adaptation strategies that businesses and investors can adopt to reduce vulnerability to climate change impacts. Using drought-resistant crops is specifically mentioned as a vital adaptation practice in the agricultural sector.
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