Deck 5: Metrics, Tools, and Reporting: The Role of Finance and Accounting

Question 1

PUMA developed the ______ metric to put the environmental performance of products into financial terms.

A) Supplier Performance
B) Economic Performance
C) Environmental Profit & Loss
D) Apparel Retail

Answer 1

Environmental Profit & Loss

Question 2

The Information-Driven Sustainable Business Model has four elements: external data, ______, public disclosures, and stakeholder feedback.

A) Internal analysis
B) Strategy formulation
C) Product innovation
D) Financial reporting

Answer 2

Internal analysis

Question 3

______ verification provides objective assessment and validation of the accuracy of sustainability reporting.

A) Environmental
B) Third-tier supplier
C) External
D) Independent, third-party

Answer 3

Independent, third-party

Question 4

______ are standards of measurement designed to capture critical information about corporate performance in the form of objective data.

A) Greenhouse gas protocols
B) Metrics
C) Requests for disclosure
D) ISO 14000

Question 5

______ emissions, especially carbon dioxide, represent a company's contribution to atmospheric pollution.

A) Water pollution
B) Hazardous waste
C) Greenhouse gas
D) Local

Question 6

This metric, ______ from sustainable products, allows companies to get a clear picture of the return on investment into sustainable innovation.

A) Cost
B) Stakeholder feedback
C) Internal analysis
D) Revenue share

Question 7

This metric, ______ per unit of production, tracks water use through the entire supply chain and production process for a given time period and divides that total volume of water by units of production.

A) Carbon density
B) Revenue share
C) Scope 3
D) Water intensity

Question 8

Natural capital accounting means measuring and reporting the environmental externalities of business in order to inform business decision-making and to manage the risks of natural resource ______.

A) Co-generation
B) Surplus
C) Dependency
D) Conservation

Question 9

______ assessment discloses the full gambit of adverse social and environmental impacts associated with a product, from raw material sourcing, to processing, manufacture, distribution, sale, consumption, and disposal.

A) Product malfunction
B) MD&A
C) Life cycle
D) Product defect

Question 10

The metaphor, "from cradle to ______," describes the scope of product life-cycle assessment.

A) Cane
B) Table
C) Boardroom
D) Grave

Question 11

Product life-cycle assessment includes four steps: Define the scope and goal; identify the kinds of environmental impacts that might occur; conduct ______; and interpret the results for stakeholders.

A) Market research
B) Impact assessment
C) Internal investigations
D) External reporting

Question 12

______ was designed to improve consumer access to information about products by providing a numerical rating of social and environmental attributes associated with each product.

A) GoodGuide
B) Green Atlas
C) Sustainable Buyer's Guide
D) Handbook for the Informed Consumer

Question 13

Companies monitor sustainability performance for several purposes, including organizational learning, improved decision-making, regulatory compliance, ______, and demonstration.

A) Regulatory arbitrage
B) Opportunities to externalize costs
C) Anthropocentrism
D) Accountability

Question 14

When the impacts of environmental issues are measurable in financial terms, they can and should be included as quantitative elements in business accounts by ______ professionals.

A) Customer service
B) Retail
C) Educated
D) Finance and accounting

Question 15

Although this issue has traditionally been treated as discretionary, many financial reporting and accounting standards arguably require disclosure of a publicly traded business's reliance on ______.

A) Imported goods
B) Ecosystem services
C) Renewable energy
D) Rare earth minerals

Question 16

According to the International Federation of Accountants' Sustainability Framework 2.0, sustainable performance can be promoted through accountancy by integrating environmental and social values into the ______ of a firm.

A) Scheduling
B) Physical structure
C) Economic structure
D) Supply chain

Question 17

Transparency means that those affected by corporate conduct, whether investors, regulators, customers, or communities impacted by business activities, are able to ______ such conduct.

A) Control
B) Access information about
C) Limit
D) Benefit from

Question 18

Environmental externalities related to biodiversity impacts and reliance on ecosystem services are ______ issues and should be included in risk assessments, financial accounts, and reporting cycles.

A) External
B) Minor
C) Bona fide
D) Material

Question 19

Reporting can be done from a horizontal or vertical point of view, the former focused on the performance of a single firm, the latter focused on the entire ______ of a product.

A) Price range
B) Value chain
C) Marketing plan
D) Packaging

Question 20

The role of finance officers in promoting transparency with respect to environmental performance is to include ______ dependency in risk and materiality assessments, and to disclose material environmental issues to investors.

A) Human resources
B) Supplier
C) Natural capital
D) Welfare

Question 21

One of the roles of accounting professionals in promoting transparency is to develop methodologies to quantify ______ that impact stakeholders.

A) Product costs
B) Externalities
C) Incentives
D) Supply costs

Question 22

______ is the forthright disclosure of relevant information regarding corporate conduct to affected stakeholders.

A) Metric
B) Internal analysis
C) External data
D) Reporting

Question 23

The Carbon ______ is a non-profit that collects climate change information from voluntary business disclosures, including emissions amounts and associated risks, on behalf of institutional investors.

A) Disclosure Project
B) Protocol
C) Resources Institute
D) Exploration & Production

Question 24

______ reporting, exemplified by the CEO Water Mandate, is a multi-stakeholder process involving industry and NGOs that culminates in a formal method for monitoring and disclosing adverse environmental impacts.

A) Internal
B) Independent
C) Traditional
D) Collaborative

Question 25

The Information-Driven Sustainable Business Model is a continual process of information gathering, internal analysis, ______ and stakeholder feedback that enables a company to be responsive to stakeholder concerns while meeting its own performance goals.

A) Product innovation
B) Public disclosure
C) Internal control
D) Third-party verification

Question 26

Reporting sustainability performance is now ______ of large companies.

A) Done by the majority
B) Done by the minority
C) Diminishing
D) Done by all

Question 27

Disclosure of environmental and social impacts may be necessary to satisfy investors; to become eligible for sustainability certifications from third-party providers; and to attain listing on the ______ Sustainability Indices.

A) Global Reporting Initiative
B) UN Global Compact
C) Dow Jones
D) Chamber of Commerce

Question 28

Improved public image, stakeholder relations, and employee morale are all potential benefits of ______.

A) Life cycle assessment
B) Cradle to cradle design
C) Reporting sustainability performance
D) Virtual offices

Question 29

The most common reason companies disclose environmental, health, and safety information is ______.

A) Response to customer inquiry
B) Legal mandate
C) Shareholder resolution
D) By mistake

Question 30

It is ______ that reporting on sustainability performance provides increased access to capital.

A) Too early to tell
B) Certain
C) False
D) None of the above

Question 31

Reporting on sustainability performance is ______ at providing benefits in the form of customer access, public image, stakeholder relations, competitive positioning, preferred supplier status, and employee morale.

A) Unsuccessful
B) Mostly unsuccessful
C) More successful than not
D) None of the above

Question 32

Internal reporting on sustainability ______ reach the CEO or Board-level committees.

A) Usually does
B) Never does
C) Should not
D) None of the above

Question 33

The SEC's general risk disclosure obligations require all publicly traded companies to follow a process known as Management's ______ of Financial Condition and Results of Operations (MD&A).

A) Decision and Application
B) Dedication and Announcement
C) Directive and Authorization
D) Discussion and Analysis

Question 34

Information is ______ if there is a substantial likelihood that a reasonable investor would consider it important to an investment decision.

A) Available
B) Material
C) Public
D) Confidential

Question 35

The Sarbanes-Oxley Act of 2002 was designed to protect ______ by improving the accuracy and reliability of corporate disclosures, requiring senior managers to certify the accuracy of financial reports, and empowering the Securities and Exchange Commission to develop and enforce rules.

A) The public
B) Suppliers
C) Managers
D) Investors

Question 36

The SEC's Commission Guidance Regarding Disclosure Related to Climate Change advises managers to provide ______ disclosures about known trends associated with climate change that are reasonably likely to have a material impact on a company's operations.

A) Retrospective
B) Supplier
C) Semi-annual
D) Future-oriented

Question 37

The International Organization for ______ has developed standards for organizational guidance in the area of environmental management.

A) Standardization
B) Safety
C) Sustainability
D) Generalization

Question 38

The ISO ______ series, titled Guidance on Social Responsibility, provides a process to ensure business decisions affecting society or the environment are made ethically and transparently.

A) 9000
B) 14000
C) 26000
D) 12000

Question 39

The ISO ______ series provides tools to identify and report on the adverse impacts of business, including facility-specific water use; life-cycle impact analysis of products in development; and auditing protocols.

A) 9000
B) 14000
C) 26000
D) 12000

Question 40

The Global ______ provides comprehensive sustainability reporting metrics for organizations to promote economic, environmental, and social sustainability.

A) Union
B) Response Network
C) Reporting Initiative
D) Water Protocol

Question 41

The majority of companies that report sustainability performance in the S&P 500 use the ______ framework, which is the most widely used sustainability reporting framework in the world.

A) Vertical view
B) European Union
C) World Bank
D) Global Reporting Initiative

Question 42

The World Resources Institute and the World Business Council for Sustainable Development partnered to develop the ______, an accounting tool used to understand, quantify, and manage greenhouse gas emissions.

A) Groundwater footprint
B) CEO Water Mandate
C) Greenhouse Gas Protocol
D) Global Reporting Initiative

Question 43

Greenhouse gas ______ is a tool for organizations to determine the quantity and source of carbon dioxide emissions.

A) Footprinting
B) Emissions
C) Storage
D) Reductions

Question 44

______ analysis is used to quantify impacts on climate change, air quality, water resources, forests, fisheries, and soil quality, among other environmental mediums.

A) Conservation
B) Environmental footprint
C) Preservation
D) MD&A

Question 45

Water ______ tools measure water use, polluted water discharge, and water- related business risks across a variety of geographic contexts and industry sectors.

A) Footprint
B) Withdrawal
C) Collection
D) Emissions

Question 46

The World Resources Institute developed ______, an online global database of local and global water risk indicator metrics and reporting standards.

A) Blue Atlas
B) GoodGuide
C) Groundwater footprinting
D) Aqueduct

Question 47

The analytical tool that assesses the impacts of groundwater withdraws is called groundwater footprint, defined as the area required to sustain groundwater use and groundwater-dependent ______.

A) Conservation
B) Preservation
C) Ecosystem services
D) Endangered species

Question 48

A manufacturing company decides to report its greenhouse gas footprint. The indirect emissions resulting from electricity consumption, generated by the electricity provider to fulfill the manufacturer's demand forecasts, are an example of ______ Emissions.

A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4

Question 49

A factory that emits carbon dioxide decides to report its greenhouse gas footprint. Their direct emissions from internal operations are an example of ______ Emissions.

A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4

Question 50

A retail company decides to report its greenhouse has footprint. The emissions caused by suppliers of the manufacturing company that fabricates the products the retailer sells, are an example of ______ Emissions.

A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4

Question 51

The Information-Driven Sustainable Business Model uses a continual process of monitoring and ______ information that enables a company to be responsive to stakeholder concerns and environmental considerations while meeting its own performance goals.

Question 52

The Greenhouse Gas ______, a partnership between the World Resources Institute and the World Business Council for Sustainable Development, is an accounting tool used to understand, quantify, and manage greenhouse gas emissions.

Question 53

Water ______ tools measure water use, polluted water discharge, and water- related business risks across a variety of geographic contexts and industry sectors.

Question 54

Information is ______ if there is a substantial likelihood that a reasonable investor would consider it important to an investment decision.

Question 55

The Global ______ Initiative (GRI) provides comprehensive sustainability disclosure frameworks for organizations to promote economic, environmental, and social sustainability.

Question 56

What issues should a company consider before responding to an advocacy organization's request for information about its sustainability performance?

Question 57

How does the Corporate Knight's Global 100 List use the Global Reporting Initiative to rank companies by sustainable performance?

Question 58

How does PUMA's Environmental Profit & Loss natural capital accounting tool use life-cycle assessment? Include all four steps of the life-cycle assessment process.

Question 59

Describe groundwater footprinting and the state of global groundwater resources.

Question 60

How does the SEC's MD&A analysis influence corporate disclosure obligations? Include an explanation of materiality.