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GARP Sustainability and Climate Risk SCR Question # 35 Topic 4 Discussion

GARP Sustainability and Climate Risk SCR Question # 35 Topic 4 Discussion

SCR Exam Topic 4 Question 35 Discussion:
Question #: 35
Topic #: 4

A timber products company in the southeastern US plants, manages, and harvests a species of trees with a 30-year growth cycle. Prior to a planting cycle, the risk management team measures company exposure to stranded asset risk. Which of the following will the team most likely use to measure stranded asset exposure risk to the company?


A.

Timeframe before timber assets are written off


B.

Stringency of carbon regulations in timber farm locations


C.

Projected quality of timber products at forest maturity


D.

Short-term consumer preference shifts toward alternative products


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