CFA Institute ESG-Investing Exam Practice Test Instant Access

Question 1

Impact investment funds most likely align their portfolios with:

ASustainable Development Goals.

BESG frameworks that are norms-based.

COECD Guidelines for Multinational Enterprises.

Answer : A

Question 2

The management gap best describes a risk that:

ACannot be managed

BPart of a credit portfolio's positions are unrated

CCan be managed, but is not yet being addressed

Answer : C

Question 3

Investment in fossil fuels is permitted under:

AThe EU Paris-Aligned Benchmarks only

BThe EU Climate Transition Benchmarks only

CBoth the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks

Answer : C

Question 4

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

Question 5

Which of the following is most likely a secondary source of ESG information?

AAnnual reports

BESG rating reports

CCorporate sustainability reports

Answer : B

Question 6

Which of the following principles of the UK Stewardship Code could be considered controversial?

AProxy voting

BCollective engagement

CMonitoring of investee companies

Answer : B

Question 7

ESG datasets are best characterized by:

AExtensive history.

BVoluntary disclosure.

CCommon reporting standards.

Answer : B

CFA Institute Certificate in ESG Investing ESG-Investing Exam Practice Test