CFA ESG - Chapter 2(100% Correct)
What did the Brundtland Report of 1987 show and what else was it referred to as? -
ANSWERSThe Brundtland Report of 1987 showed that if you want good, long term
economic growth, then you need to consider the environment and social progress. It
was also called "Our Common Future".
What did the Brundtland Report lay the foundations for and in what year? -
ANSWERSThe Rio de Janeiro Earth Summit. 1992.
What did the Rio de Janeiro Earth Summit lead to? What does this mean? -
ANSWERSThe creation of the UN Commission on Sustainable Development and the
Rio Declaration.
What is the Rio Declaration? - ANSWERSIt states that businesses have a responsibility
to ensure that activities within their own operations do not cause harm to the
environment as businesses gain their legitimacy through meeting the needs of society.
Which religious groups began the trend of responsible investing? Around what time was
this? What type of ESG investing is this? - ANSWERSQuakers and Methodists laid out
guidelines to their followers over the types of activities in which they should or should
not invest in the 17th/18th century. This is an example of negative screening.
What created the modern institutionalisation of ethical exclusions in the 20th century?
How was this different from before? - ANSWERSThe creation of the Pax World Fund
during the Vietnam War in 1971, the first ethical mutual fund. It meant that everyone
could use it, not just the Quakers.
What was the Sullivan Campaign? - ANSWERSCreated the Sullivan Principles in the
late 1970s in protest at South Africa's system of apartheid, it pushed the divestment
movement.
What ushered in modern ESG investing and when? - ANSWERSIn 2004, Un Secretary
General, Kofi Annan, engaged financial institutions to take part in an initiative under the
UN Global Compact to integrate ESG. Initiative brought about a report entitled 'Who
Cares Wins'
Combined with the Who Cares Wins report, which other report formed the basis for the
launch of two bodies? What are these bodies? - ANSWERSThe Freshfields Report
launched by the UNEP FI in 2004. These together led to the creation of the PRI at the
New York Stock Exchange in 2006 and the Sustainable Stock Exchange Initiative
(SSEI) in 2007.
What did the Brundtland Report of 1987 show and what else was it referred to as? -
ANSWERSThe Brundtland Report of 1987 showed that if you want good, long term
economic growth, then you need to consider the environment and social progress. It
was also called "Our Common Future".
What did the Brundtland Report lay the foundations for and in what year? -
ANSWERSThe Rio de Janeiro Earth Summit. 1992.
What did the Rio de Janeiro Earth Summit lead to? What does this mean? -
ANSWERSThe creation of the UN Commission on Sustainable Development and the
Rio Declaration.
What is the Rio Declaration? - ANSWERSIt states that businesses have a responsibility
to ensure that activities within their own operations do not cause harm to the
environment as businesses gain their legitimacy through meeting the needs of society.
Which religious groups began the trend of responsible investing? Around what time was
this? What type of ESG investing is this? - ANSWERSQuakers and Methodists laid out
guidelines to their followers over the types of activities in which they should or should
not invest in the 17th/18th century. This is an example of negative screening.
What created the modern institutionalisation of ethical exclusions in the 20th century?
How was this different from before? - ANSWERSThe creation of the Pax World Fund
during the Vietnam War in 1971, the first ethical mutual fund. It meant that everyone
could use it, not just the Quakers.
What was the Sullivan Campaign? - ANSWERSCreated the Sullivan Principles in the
late 1970s in protest at South Africa's system of apartheid, it pushed the divestment
movement.
What ushered in modern ESG investing and when? - ANSWERSIn 2004, Un Secretary
General, Kofi Annan, engaged financial institutions to take part in an initiative under the
UN Global Compact to integrate ESG. Initiative brought about a report entitled 'Who
Cares Wins'
Combined with the Who Cares Wins report, which other report formed the basis for the
launch of two bodies? What are these bodies? - ANSWERSThe Freshfields Report
launched by the UNEP FI in 2004. These together led to the creation of the PRI at the
New York Stock Exchange in 2006 and the Sustainable Stock Exchange Initiative
(SSEI) in 2007.
