10 Sample Questions:  (* indicates the correct answer)​

1.  In the Corporate Governance Report, issuers should disclose a narrative statement on how they have complied with the risk management and internal control code provisions during the reporting period.  According to the guidelines of the Hong Kong Stock Exchange, they should disclose:

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A. The tools used to identify, evaluate, and manage significant risks*

B. The main features of the risk management and internal control systems

C. An acknowledgment by the board that it is responsible for the risk management and internal control systems and reviewing their effectiveness

D. The process used to review the effectiveness of the risk management and internal control systems

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2.  Which of the following is NOT the key air pollutants in Hong Kong and the Pearl River Delta?

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A. Carbon dioxide (“CO2”)*

B. Nitrogen oxides (“NOX”)

C. Particulate matter (“PM”)

D. Sulphur oxides (“SOX”)

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3.  When preparing to conduct an internal materiality assessment, an issuer could take into account:

 

A. Its overall mission and competitive strategy, corporate values, policies, strategies, operational management systems, impact assessments, goals, and targets, including its risk management framework, risk register and related studies/analyses.

B. Laws, regulations, international agreements, or voluntary agreements of strategic significance to the issuer.

C. Main topics and future challenges for the issuer’s sector, particularly taking into account relevant guidance and resources that are available.

D. A, B, and C*

 

4. Which of the following formulas is CORRECT to calculate the GHG intensity according to Appendix C2 issued by HKEX?

 

A. GHG intensity = Emissions in CO2 equivalent/headcount

B. GHG intensity = Emissions in CO2 equivalent/floor space

C. GHG intensity = Emissions in CO2 / revenue

D. A, B, and C*

 

5.  The following tables are the employment data of the reporting period provided by the HR department of ABC Group at the end of 2023. The turnover rate for the employees under 30 years old is:​

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A. 5%

B. 6.25%

C. 9%

D. 10%*

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6.  According to the latest Science Based Target Initiative (“SBTi”), what is the maximum percentage of total combined Scope 1 and 2 emissions that companies are allowed to exclude from the boundary of the GHG inventory or the target boundary?

 

A. 3%

B. 5%*

C. 10%

D. 15%

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7.  Which of the following are the four pillars of the TCFD framework?

i. Disclosure

ii. Governance

iii. Strategy

iv. Risk Management

v. Metric and Targets

vi. Climate impacts

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A. i, ii, iii, and iv

B. i, ii, iii, and vi

C. ii, iii, v, and vi

D. ii, iii, iv, and v*

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8.  Which of the following items does NOT belong to Chronic Physical Risks according to the IFRS-S2 Standard by the International Sustainability Standard Board (“ISSB”)?

 

A. heatwaves*

B. rising sea levels

C. biodiversity loss

D. reduced water availability

 

9.  According to the “Implementation Guidance for Climate Disclosures under HKEX ESG reporting framework”, which of the following efforts belongs to the INDIRECT Adaptation and Mitigation Efforts?

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i. Engage with customers through providing training sessions to increase their awareness of climate change

ii. Install flood walls in assets located in high-risk locations to reduce the chance of disruption

iii. Work with suppliers to increase the adoption of climate-resilient practices to improve their productivity and strengthen their resilience to extreme weather

iv. Relocate facilities in high-risk locations and adjust workforce

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A. i, ii

B. i, iii*

C. i, ii, iii

D. i, ii, iv

 

10.  Which of the following are recommended by the “HKEX GUIDANCE LETTER HKEX-GL86-16” of the Hong Kong Stock Exchange?

 

i. Applicants should disclose details of their risk management and internal control systems, including processes used to identify, evaluate and manage significant risks such as market, credit, operational, environmental (including climate-related), social and governance risks in the “History and Development” section of their listing documents.

ii. Applicants should disclose details of their risk management and internal control systems, including processes used to identify, evaluate and manage significant risks (including climate-related risks, social and governance risks) in the “Business” section of their listing documents.

iii. Applicants should include a description of the significant impacts of the applicant’s activities on the environment and natural resources and the action taken to manage them in the “Business” section of their listing documents.

iv. Applicants should include a description of the significant impacts of the applicant’s activities on the environment and natural resources and the action taken to manage them in the “Financial Information” section of their listing documents.

 

A. i, iii

B. i, iv

C. ii, iii*

D. ii, iv

 

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