Question 1

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

Accepted Answer

PUMA developed the Environmental Profit & Loss (E P&L) metric to quantify and monetize the environmental impact of its products and operations, translating environmental performance into financial terms.

Question 2

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

Accepted Answer

Internal analysis is the process of examining a company's internal environment to identify its strengths, weaknesses, opportunities, and threats. This information is used to develop strategies and make decisions about how to improve the company's performance.

Question 3

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

Accepted Answer

Independent, third-party verification ensures an objective assessment and validation of the accuracy of sustainability reporting, as it involves an unbiased entity reviewing the information.

Question 4

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

Accepted Answer

Metrics are standards of measurement that are used to capture important information about the performance of a company in an objective manner. They help in assessing and comparing different aspects of corporate performance.

Question 5

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

Accepted Answer

Greenhouse gas emissions, especially carbon dioxide, are directly linked to atmospheric pollution and climate change, representing a company's contribution to these environmental issues.

Question 6

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

Accepted Answer

Revenue share from sustainable products helps companies understand the financial return on their investment in sustainable innovation.

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.

Accepted Answer

Water intensity per unit of production is the metric that measures the total volume of water used throughout the supply chain and production process, divided by the units of production, to assess the efficiency of water use.

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 ______.

Accepted Answer

Natural capital accounting involves measuring and reporting the environmental impacts of a business's operations, particularly focusing on how businesses depend on natural resources. This approach helps in managing the risks associated with this dependency, such as resource depletion or regulatory changes.

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.

Accepted Answer

Life cycle assessment is the process that evaluates the environmental and social impacts of a product throughout its entire life cycle, from raw material extraction to disposal.

Question 10

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

Accepted Answer

The metaphor "from cradle to grave" is used to describe the scope of product life-cycle assessment, encompassing all stages from production to disposal.

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.

Accepted Answer

The correct step in a product life-cycle assessment after defining the scope and goal and identifying potential environmental impacts is to conduct an impact assessment. This involves analyzing the data to understand the environmental impacts of the product throughout its life cycle.

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.

Accepted Answer

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

Question 13

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

Accepted Answer

Accountability is a key reason companies monitor sustainability performance, as it involves being responsible and answerable to stakeholders for actions and decisions, particularly in relation to environmental and social impacts.

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.

Accepted Answer

Finance and accounting professionals are responsible for managing and reporting a company's financial information, including the impacts of environmental issues when they can be quantified in financial terms. This allows for a more comprehensive understanding of the company's financial health and its environmental footprint.

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 ______.

Accepted Answer

Ecosystem services are fundamental to the operation of many businesses, and their importance is increasingly recognized in financial reporting and accounting standards. These standards often require disclosure of environmental impacts and dependencies, including reliance on ecosystem services, due to their potential to significantly affect business operations and financial performance.

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.

Accepted Answer

The International Federation of Accountants' Sustainability Framework 2.0 promotes sustainable performance by integrating environmental and social values into the economic structure of a firm. This approach emphasizes the importance of considering sustainability in financial and economic decision-making processes.

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.

Accepted Answer

Transparency in a corporate context primarily refers to the openness and accessibility of information regarding the company's operations, decisions, and activities. This allows stakeholders to be informed and make decisions based on the company's conduct.

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.

Accepted Answer

Environmental externalities related to biodiversity impacts and reliance on ecosystem services are material issues because they can have significant financial implications for businesses and economies, thus they should be included in risk assessments, financial accounts, and reporting cycles.

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.

Accepted Answer

The correct term is "value chain," which refers to the full range of activities that businesses go through to bring a product or service from conception to delivery and beyond. This includes everything from design, production, marketing, and distribution. Reporting from a vertical point of view involves looking at how each stage of the value chain affects the overall performance and competitiveness of a product in the market.

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.

Accepted Answer

Finance officers promote transparency in environmental performance by including natural capital dependency in risk and materiality assessments. This involves assessing how the organization's operations depend on natural resources and ecosystems, and disclosing any material environmental issues to investors.

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