出处

问题如下：

Which of the following best describes the risk of increased environmental regulation?

选项：

A.Physical risk only

B.Transition risk only

C.Both physical risk and transition risk

解释：

B is correct because there is a growing appreciation of the physical risks of climate change, stemming from more frequent or severe weather events, such as flooding, droughts, and storms. Therefore, increased environmental regulation is not an example of physical risk. It is an example of transition risk because transition risks are multiple in nature and include policy risks, such as increased emission regulation and environmental standards.