Practice Test GeeksCCA - Certified Carbon Auditor Practice Test
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Portfolio Management Flashcards

7 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under PCAF, how is the attribution factor for a residential mortgage calculated?

    Answer: Outstanding loan divided by property value at loan origination

    PCAF attributes mortgage emissions using the outstanding amount over property value at origination.

  2. What denominator does PCAF use to attribute emissions for sovereign debt?

    Answer: PPP-adjusted GDP

    PCAF's sovereign debt method divides outstanding exposure by purchasing-power-parity-adjusted GDP.

  3. For project finance, PCAF attributes emissions based on the lender's outstanding amount divided by what?

    Answer: Total equity plus debt of the project

    Project finance uses the project's total equity and debt as the denominator.

  4. Which metric expresses financed emissions per million dollars invested?

    Answer: Carbon footprint

    Carbon footprint = total financed emissions divided by portfolio value (tCO2e/$M invested).

  5. An asset manager reports a portfolio implied temperature rise (ITR) of 2.7°C. What does this indicate?

    Answer: The portfolio's holdings are on a pathway consistent with 2.7°C of warming

    ITR translates holdings' emissions trajectories and targets into an implied global warming outcome.

  6. Under EU Paris-Aligned Benchmark rules, what minimum year-on-year decarbonization trajectory is required?

    Answer: 7%

    Both EU Paris-Aligned and Climate Transition Benchmarks require at least 7% annual self-decarbonization.

  7. Compared with its investable universe, an EU Paris-Aligned Benchmark must start with a GHG intensity reduction of at least:

    Answer: 50%

    PABs require a 50% initial intensity reduction versus the parent universe, versus 30% for CTBs.