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. Which SBTi target-setting method for financial institutions sets targets based on the share of portfolio companies with approved science-based targets?

    Answer: Portfolio coverage approach

    The portfolio coverage approach commits the FI to having a growing share of investees with validated SBTs.

  2. Why is WACI considered sensitive to factors other than real-world decarbonization?

    Answer: It uses revenue as the denominator, so revenue or price changes alter results

    Because WACI uses revenue-based intensity and portfolio weights, inflation, revenue swings, and rebalancing can shift it without emission cuts.

  3. An asset owner reduces portfolio emissions 40% by selling all utility holdings to other investors. What is the main criticism from a real-economy perspective?

    Answer: Emissions are shifted to other owners, not reduced in the atmosphere

    Divestment improves portfolio metrics but the underlying emissions continue under new owners.

  4. Under PCAF, when a commercial real estate loan lacks building energy data, which data quality score is typically assigned to estimates based on floor area and average building-type emission factors?

    Answer: Score 4

    Estimates using floor area and average emission factors rank as lower-quality (score 4), while actual energy data scores higher.

  5. Which alliance requires institutional investors to transition portfolios to net-zero emissions by 2050 with interim five-year targets?

    Answer: Net-Zero Asset Owner Alliance (NZAOA)

    The UN-convened NZAOA commits asset owners to net-zero portfolios by 2050 with interim targets.

  6. When auditing financed emissions, why should Scope 3 emissions of investees in sectors like oil and gas be disclosed separately?

    Answer: They are large and prone to double counting across the value chain

    Investee Scope 3 is material for sectors like oil and gas but overlaps heavily across companies, so separate disclosure aids transparency.

  7. A lender's motor vehicle loan is $20,000 outstanding on a car valued at $40,000 at origination emitting 4 tCO2e per year. What are the annual financed emissions under PCAF?

    Answer: 2 tCO2e

    Attribution factor 20,000/40,000 = 50%, so 50% x 4 = 2 tCO2e.