CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

Formal corporate governance codes are most likely to:

Abe found in all major world markets.

Bcall for serious consequences for non-compliant organizations.

Cbe interpreted by proxy advisory firms when corporate compliance is assessed.

Answer : A

Question 2

Which of the following statements is most accurate? The Kyoto Protocol was created to:

AEncourage companies to make climate-related disclosures

BMobilize private sector finance for sustainable development

CCommit industrialized countries to limit and reduce greenhouse gas emissions

Answer : C

Question 3

A company is accused of surveying employees to prevent them from forming a union. The decision of an asset manager to divest from holding shares in the company is an example of:

Auniversal exclusion.

Bidiosyncratic exclusion.

Cconduct-related exclusion.

Answer : C

Question 4

A challenge for the positive alignment ESG approach is the:

Arelative complexity of implementation

Bdiversity of ESG ratings methodologies

Creliance on stewardship and engagement activities

Answer : B

Question 5

Working conditions on a tree plantation are most likely an example of a(n):

Asocial issue

Bgovernance issue

Cenvironmental issue

Answer : A

Question 6

With regard to screening, exclusions that are not supported by global consensus are best described as:

Auniversal exclusions

Bidiosyncratic exclusions

Cconduct-related exclusions

Answer : B

Question 7

Which of the following statements about the Green Claims Directive (GCD) is most accurate? The GCD:

Aapplies to mandatory green claims made by businesses towards consumers

Baims to make green claims reliable, comparable, and verifiable across the world.

Crequires verification by independent auditors before green claims can be made and marketed

Answer : B

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions