Crowdly

Which of the following is a green bond risk for investors?

Oversupply of eligible projects

Too much external verification

Excess regulation in global markets

Funds not used as promised but no legal default triggered

Which of the following is an ethical issue in algorithmic lending?

Bias in credit scoring models

More efficient loan approvals

High default rates in developing economies

Lower operating costs

Which of the following is an example of an acute physical climate risk?

Gradual sea-level rise

Slow changes in rainfall patterns

Increased frequency of hurricanes

Long-term drought

Which company action best represents responsible leadership?

Pursuing rapid expansion while ignoring worker safety

Outsourcing all compliance to external consultants

Engaging with community stakeholders before project approval

Maximizing profits regardless of environmental harm

A bank issuing sustainability bonds to fund affordable housing primarily addresses which ESG factor?

Environmental

Governance

Financial

Social

Which ethical framework focuses on duty-based obligations regardless of outcomes?

Consequentialism

Deontology

Profit-maximisation

Utilitarianism

Which is a governance red flag in executive boards?

Annual board self-assessments

Diverse board membership with stakeholder representation

Independent directors making up less than 30%

Transparent ESG-linked compensation schemes

Under Stakeholder Theory, how are environmental obligations viewed?

Only relevant when government mandates exist

As integral to the interests of all stakeholders

As irrelevant to long-term value

Secondary to shareholder profits

Which of the following is a challenge in the sustainability-linked loan (SLL) market?

Weak penalties for borrowers failing to meet ESG targets

Excess liquidity in ESG credit markets

Lack of demand from institutional investors

Too many standardized metrics