SUSTAINABLE BANKING PRINCIPLES PTRACTICE

QUESTIONS

Which form of energy is renewable?

a. Solar
b. Oil
c. Coal
d. Nuclear

Which of the following best defines Stakeholders?

a. Investors and lenders

b. Environmental groups
c. Anyone directly or indirectly affected by the organization
d. Groups or individuals financially impacted by the organization

Which of the following options is not incorporated as sustainable

development parameters?
a. Gender disparity and diversity.
b. Inter and intra-generational equity.
c. Carrying capacity.
d. None of the above.

What does the term 'sustainable' mean?

a. The implementation of eco-friendly technologies.

b. A balance between meeting today's needs with those of the future.
c. The use of alternative energies.
d. To continually increase output.
Sustainable development means maximizing:

a. Economic growth.
b. Income inequality.
c. The productivity of produced assets.
d. None of the above.

Socially Responsible Investing (SRI) has three (3) major pillars:

a. Environmental, Economic and Social.

b. Monetary, Social and Profits.
c. Environmental, Monetary and Social.
d. Environmental, Governance and Social.

One of the following is not a Millennium Development Goal (MDG):

a. Eradicate extreme poverty and hunger.
b. Reduce child mortality.
c. Promote gender inequality and disenfranchise women.
d. Combat HIV/AIDS, malaria and other diseases.

Socially responsible companies are companies that promote ethical and

socially conscious themes including environmental sustainability, social
justice, and corporate ethics, and fight against gender, sexual, disabilities
and color discrimination.

a. True
b. False
The United Nations Millennium Development Goals (MDGs) goals that the UN
Member States agreed to try to achieve by the year 2015 were to eradicate
extreme poverty and hunger, achieve universal primary education, promote
gender equality and empower women, reduce child mortality, improve
maternal health, combat HIV/AIDS, malaria and other diseases, ensure
environmental sustainability, and to develop a global partnership for
development.

a. True
b. False

There are eight Millennium Development Goals (MDGs) that were developed
in 2000 and subsequently reviewed in 2005, 2008 and 2010.
a. True
b. False

In articulating an effective measurement framework for Sustainable Banking,

the key elements involved are:
a. Focus on Green House Gas (GHG) emissions, Socially Responsible
Investing (SRI) and Environmental Impact Assessment (EIA).
b. Environmental & Social impact (conducting and environmental impact
assessment), Green Financing and ensuring an Enabling Environment.
c. Socially Responsible Investing (SRI) only.
d. None of the above.

One of the following is not a principle of the UN Global Compact:

a. Promote the development and dissemination of environmentally
responsible technologies.
b. Eliminate all forms of forced or compulsory labor.
c. Eradicate all forms of child labor in an entity’s productive chain.
d. Enhance corruption in all its forms, including extortion and bribery.
ISO 14001 sets out the criteria for an Environmental Management Systems
(EMS). It sets out a framework that an entity can follow to improve efficiency
by reducing costs and also benefit the environment. ISO 14001
Environmental Management Systems Certification can only be used by
countries approved by the United Nations that intend to validate their
resource efficiency, waste reduction, and drive down costs.
a. True
b. False

The Earth Summit held in Rio de Janeiro, Brazil, in 1992 developed the “Rio
Declaration” which contained seven (7) principles on new and equitable
partnerships, and sustainable development through cooperation amongst
member states, social sectors and individuals.
a. True
b. False

The United Nations Environment Programme Finance Initiative (UNEP FI)

launched the Principles of Sustainable Insurance (PSI) in 2012 and these
principles have been embraced by over 25% of the world’s insurers.
a. True
b. False

The United Nations Environment Programme Finance Initiative (UNEP FI)

established the Principles of Responsible Investment (PRI) in 2006 and these
principles are now applied by more than half of the world’s institutional
investors.
a. True
b. False

Green Investments focus on companies/projects that are committed to the

consumption of natural resources.
a. True
b. False
The United Nations (UN) Global Compact is a strategic initiative that supports
global companies that are committed to responsible business practices in the
areas of human rights, labour, the environment and corruption.
a. True
b. False

Sustainable Development Goals (SDGs) differ from Millennium Development

Goals (MDGs) in one major aspect:
a. The SDG framework makes no distinction between “Developed” and
“Developing” Countries.
b. SDGs focus on Developing Countries while MDGs focus on
Industrialised or Developed Countries.
c. SDGs are a brainchild of the International Monetary Fund (IMF) while
MDGs were articulated by the World Bank.
d. There is no major difference.

Green Bonds are:

a. Debt securities issues by States and private entities and are specifically
designed for climate and environmental projects that contribute to
sustainable development.
b. Debt securities issued only by States for climate and environmental
projects that contribute to sustainable development.
c. Debt securities issued in financing agricultural projects that contribute
to sustainable development.
d. Debt securities issued to tackle the problems of Greenhouse gas (GHG)
emissions in the pursuit of sustainable development.

One of the following is not a risk of unmanaged environmental and social

issues for clients of Financial Institutions:
a. Fines and penalties.
b. Loss of market share.
c. Disruption of business operations.
d. Greater market visibility and enhancement.
Nigeria Sustainable Banking Principles framework was introduced by CBN in
July 2012 mandating only Nigerian-owned banks to commence
implementation of the framework by September 2013. CBN also developed
a draft implementations guideline to support the Nigerian-owned Banks in
adopting a consistent approach in the implementation and effectiveness
evaluation.

a. True
b. False

All but one of the following are key environmental and social issues currently
affecting Nigeria:
a. Ground and water pollution.
b. Community relations.
c. Nuclear reactor emission.
d. Climate change impacts.

The financial institution is exposed to Credit risk when the investee is

unwilling and/or unable to fulfil the contractual obligations associated with
the investment transaction such as payment of principal and interest as a
result of environmental and social risks issues.

a. True
b. False

The Bank or Financial Institution is exposed to Reputational risk when the

investee shows potential to attract negative publicity due to social and
environmental risks and issues practiced.

a. True
b. False
The Financial Institution is exposed to Market risk when the investee shows
the potential to experience a reduction in the value of collateral associated
with a transaction due to environmental and social problems.
a. True
b. False

According to Ochapa Onazi, major environmental issues in Nigeria include:

a. Devastation to farm lands and river systems from oil exploration.

b. Desertification from the Sahara Desert.
c. Soil erosion.
d. All of the above.

Any adulterated elements leak into the ground, filtration, and are carried
into a groundwater reservoir is known as _____________ .
a. Land contamination
b. Noise pollution
c. Water pollution
d. Air pollution
The key sectoral guidelines focused on by the Nigerian Sustainable Banking
Principles framework are Power, Water, Agriculture, Oil and Gas and Mining.

a. True
b. False

The Nigerian constitution bestows the responsibility to improve and protect

the air, land, water, forest and wildlife of Nigeria on which of the following
a. The Nigerian State
b. The Federal Government
c. The Ministry of Environment and Social Planning
d. The State and Local Government
The Unlawful discharge of hazardous substances (solid, liquid or gas, as
defined by the regulations) into the environment is punishable by:
a. A fine of up to N10Milion
b. A fine of up to N1m and 5year Jail time
c. A fine of N1m and 10 years jail time
d. A Fine of Up to N10m and 5years Jail

Environmental and climatic sources of financial risk for FIs can be mapped
to two key risk categories:
a. Environment related and transition risks
b. Credit and reputational risks
c. Physical and transition risks
d. Environment related and physical risks

The Power to make and review regulations on air and water quality, effluent
limitations, control of harmful substances and other forms of environmental
pollution and sanitation is bestowed on which of the following?
a. National Environment Standards and Regulation Enforcement
Agency
b. The Federal Ministry of Environment and Social Planning
c. The Nigerian Urban and Regional Planning Agency
d. The State and Local Governments

The Harmful Waste Act prohibits unlawful carrying, dumping or depositing

of harmful waste in the air, land or waters of Nigeria and carried a
punishment of:
a. Death sentence
b. Up to 10years Imprisonment
c. Fine of up to N10m and 5years Imprisonment
d. Life Imprisonment
The three components of the CBN Nigeria Sustainable Banking Principles are:
a. Environment, planet, Economic
b. Social, People, Profit
c. Economic, profit, Environment
d. Environment, Social, Economic

The Nigeria Sustainable Banking Principles is accompanied by 3 sectorial

guidelines that include:
a. Water, Oil & Gas, Agriculture
b. Agriculture, Power, Mining
c. Power, Oil & Gas, Agriculture
d. Power, Water, Agriculture

Scientists expect that global climate change during the 21st century will:

a. Make Nigeria’s climate become more like the United Kingdom’s today.
b. Raise sea levels.
c. Reduce polar temperatures.
d. Reduce tropical cyclones in Bangladesh.

One of the following is not amongst the key risks associated with Oil & Gas:
a. Seismic Activities - Environmental pollution and safety problems
associated with the use of explosives.
b. Exploration and Development - Air pollution, Drilling fluids, Drill
cuttings, Deck drainage, Sanitary waste, Oil spillage and Well
treatment wastes.
c. People and talent management – recruitment and career development
and employee compensation issues.
d. Voluntary Principles on Security and Human Rights (VPSHR) and
Energy and Biodiversity Initiative (EBI).
Elements of a Sustainable Banking Approach include the following:
Articulating how the principles are relevant, integrating the principles into
business decision‐making processes, incorporating relevant international
E&S standards and industry best practice, defining clear E&S governance
structures, and measuring and reporting progress.
a. True
b. False

Setting the tone from the top in establishing a Sustainable Banking approach
is very important to achieving successful implementation of the Nigeria
Sustainable Banking Principles. This includes building and maintaining
sufficient institutional capacity, leveraging collaborative partnerships, use of
digital technology, robotics and artificial intelligence.

a. True
b. False

The Nigerian Sustainable Banking Principles (NSBS) will include all the
following except:
a. Overall risk management which in turn reduces costs and liabilities
b. Supporting Capacity Building in the sector
c. Support Collaborative Partnerships to accelerate sector progress
d. Reporting to take stock of sector progress and attendant needs

Towards achieving NSBP Principle 2 that says minimizing or offset the

negative impacts of our Business Operations on the environment and local
Communities banks are principally required to do all these except:
a. Develop Programs that addresses Climate change
b. Develop Programs that addresses Water Efficiency
c. Develop Programs that addresses Waste Management
d. Develop Programs that addresses Financial efficiency
Ban on discrimination against any group or individual, based on race, gender,
religion, culture, politics or economic background and recognition of the
rights of traditional, indigenous, or rural communities that have unique
cultural value is a crucial part of which principle?
a. Gender Equality and Inclusion
b. Human Rights
c. Social, financial, cultural inclusion and diversity
d. E & S Governance

Physical risks include all but one of the following:

a. Extreme weather events
b. Sea level rise
c. Land contamination
d. Technological changes

A Bank should aim to provide services that remove educational, gender and
other barriers to financial access, including initiatives to support ‘consumer
protection initiatives.
a. Gender Equality and Inclusion
b. Human Rights
c. Social, financial, cultural inclusion and diversity
d. Financial Inclusion

One of the key purpose of the principle of the Women’s economic

empowerment
a. creates a fairer distribution of income.
b. Encourage respect for women, especially working women.
c. Ensure women get better pay than men to increase their financial
power.
d. Drive the narrative of what men can do women can do better.
 The CBN cashless policy is an integral part of which of these principles?
a. Environmental and Financial Footprint
b. Collaborative Partnership
c. Financial Fair Play
d. Financial Inclusion

By establishing a community of practice for shared learning wherever

possible to provide for consistency in the application of standards and
practices is the purpose of
a. E&S Governance
b. Collaborative Partnership
c. Capacity Building
d. Reporting

Banks are encouraged to Collaborate with other Banks as well as establish

and participate in Nigerian sector-level initiatives: These activities ensure the
attainment of which of these NBSP Principles?
a. E&S Governance
b. Collaborative Partnership
c. Capacity Building
d. Reporting

Environmental risks relate to only climate-related risks.

a. True
b. False

ISO 14001 has become the international standard for designing and
implementing an environmental management system. The standard is
published by ISO (the International Organization for Standardization), an
international body that creates and distributes standards that are accepted
worldwide. The ISO requires that all businesses be ISO 14001-certified.
a. True
b. False