SUSTAINABLE-INVESTING practice question 14 of 35

The EU Paris-Aligned Benchmarks and EU Climate Transition Benchmarks both:

Full set: 802 questions
Answer options
A: prohibit investments in fossil fuels. Correct answer
B: impose green-to-brown ratios to restrict “brown" investments.
C: use a relative approach by comparing a company’s performance to its sector average.
Correct Answer:
A. prohibit investments in fossil fuels.
Explanation

Both the EU Paris-Aligned Benchmarks (EU PABs) and the EU Climate Transition Benchmarks (EU CTBs) prohibit investments in fossil fuels. These benchmarks are designed to align investment portfolios with the goals of the Paris Agreement by reducing carbon emissions intensity and excluding investments that contribute significantly to carbon emissions, such as those in the fossil fuel industry​​​​. ======

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