Câu 33: SCR: Sustainability and Climate Risk

An EU juice producer heavily relies on Brazil’s supply of oranges to produce its top-selling orange juice brand. The producer anticipated steady growth, but production decreased due to the rise in mean temperature in Brazil. The climate-related risk of mean temperature rise in Brazil increases what indirect effect?

1. A. The chronic market risk of a temperature rise disrupts the supply chain for oranges, reversing the significant asset write-offs for the juice producer.
2. B. The chronic physical risk of a temperature rise decreases the production of oranges and subsequently negatively impacts the profits of the juice producer by reducing the production of the juice brand. — đáp án hiện tại
3. C. The acute reputational transition risk of a temperature rise decreases production due to health-related issues with workers in Brazil, leading to reduced demand for the juice brand.
4. D. The acute physical risk of a temperature rise disrupts the supply chain for oranges, creating financial losses for the juice producer due to its inability to honor its supply contracts.