CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

Which of the following actors most likely engage with investee companies to improve their ESG performance?

AFund labellers

BAsset managers

CInvestment platforms

Answer : B

Question 2

An asset owner inquiring within a request for proposal (RFP) if the asset manager has an explicit objective to "generate a positive, measurable ESG outcome alongside a financial return" is most likely aligned with a(n):

AImpact investing approach.

BBest-in-class investing approach.

CESG-related exclusions investing approach.

Answer : A

Question 3

Which of the following encourages institutional investors to work together on human rights and social issues?

AHuman Rights 100+

BOECD Guidelines for Multinational Enterprises

CUnited Nations Guiding Principles on Business and Human Rights

Answer : C

Question 4

Scopewashing is best described as a situation in which a company's management:

AUses hyperbole to highlight its sustainability-related skills and experience.

BKeeps quiet about its environmental goals for fear of retribution or misinterpretation.

CEmphasizes positive action in one ESG area while negatively contributing to another.

Answer : C

Question 5

What type of provider of ESG-related products and services is CDP (formerly known as Carbon Disclosure Project)?

Anonprofit

Blarge for-profit

Cboutique for-profit

Answer : A

Question 6

Which of the following social factors are most likely to impact external stakeholders?

ALabor rights

BProduct liability

CHuman capital development

Answer : B

Question 7

A challenge to ESG integration for investment managers is the:

ANarrow range of possible ESG data.

BInherently subjective nature of ESG analysis.

CHigh correlation among third-party ESG ratings.

Answer : B

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions