CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

Which of the following index providers offers fixed-income ESG indexes?

AFTSE4Good

BSustainalytics

CS&P (DJSI) ESG

Answer : C

Question 2

The EU Paris-Aligned Benchmarks and EU Climate Transition Benchmarks both:

Aprohibit investments in fossil fuels

Bimpose green-to-brown ratios to restrict ''brown' investments

Cuse a relative approach by comparing a company's performance to its sector average

Answer : C

Question 3

One of the mam principles of stewardship codes calls for institutional investors to:

Aregularly monitor investee companies

Bavoid considering conflicts of interest regarding stewardship matters.

Cact independently of other investors when escalating stewardship activity

Answer : A

Question 4

The Cadbury Committee was created because of perceived problems in:

AEmployment rights

BClimate change and transition risks

CAccounting and corporate governance

Answer : C

Question 5

Which of the following is one of the four phases of activities contained by the LEAP assessment framework developed by the Taskforce on Nature-related Financial Disclosures (TNFD)?

AMinimize their interface with nature

BMaximize their dependence and impact on nature

CEvaluate material risks and opportunities for their operations

Answer : C

Question 6

Which of the following statements about ESG integration in credit ratings is most accurate?

AESG factors do not affect an issuer's ability to convert assets into cash

BRating providers tend to overcomplicate industry weighting and company alignment

CThere is a geographical bias toward companies in regions with high reporting standards

Answer : C

Question 7

Which of the following ESG risks is most likely to impact sovereign debt?

ACybersecurity risks

BPolitical stability and governance risks

CExecutive compensation structures

Answer : B

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions