CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

A family office is best categorized as an:

Aasset owner.

Bintermediary.

Casset manager.

Answer : A

Question 2

According to the Principles for Responsible Investment, which of the following engagement dynamics creates value?

APolitical dynamics only

BLearning dynamics only

CBoth political dynamics and learning dynamics

Answer : C

Question 3

Compared to stewardship codes drafted by the fund management industry, stewardship codes with regulatory backing most likely place greater emphasis on:

ADisclosure of voting activity.

BConflicts of interest management.

CEscalation activities to protect and enhance shareholder value.

Answer : C

Question 4

Pension fund trustees are most likely to face fiduciary legal risks related to:

AClimate change.

BChoice of benchmarks.

CA lack of clear signals from fund managers that they are interested in ESG.

Answer : A

Question 5

The European Union (EU) Ecolabel:

AIs a mandatory label for companies that apply sustainability labels on their products

BCertifies products that have a guaranteed, independently verified, low environmental impact

CContains a list of six key principles designed to prevent businesses from making misleading environmental claims

Answer : B

Question 6

Which of the following statements about executive pay in public companies is most accurate?

APay levels are broadly similar in different markets

BPay structures are broadly similar in much of the world

CPay is directly negotiated between investors and management

Answer : B

Question 7

Which of the following would credit rating agencies (CRAs) most likely focus on in order to test how ESG factors affect an issuer's ability to convert assets into cash?

ACapital structure analysis

BInterest coverage ratio analysis

CProfitability and cash flow analysis

Answer : C

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions