CFA ESG Exam 100% Correct!!
Brundtland Report - ANSWERSpublisshed by the UN in the 1980s. 'Introduced' the
concept of sustainable development and how it can be achieved
Enrivonmental sustainability - ANSWERSMeetings needs and aspirations today without
compromising the ability of future generations to meet their needs.* (CFA def. Don't
necessairly agree with it. )
discount rate - ANSWERSinterest rate used to determine the future value of current
cash flows
when was the first green bond issued and by whom? - ANSWERS2007, EIB
Shadow pricing - ANSWERSimposition of a theoretical carbon price. Shadow carbon
pricing is a method of investment analysis that adds a hypothetical surcharge to the
price of projects that involve the creation of carbon emissions.
What is the most common method of waste disposal globally? - ANSWERSLandfill
IOSCO - ANSWERSNetwork of securities regulators
The agency problem - ANSWERSSeparation of ownership & control
Is the primary responsibility of the shareholders to the shareholders or to the success of
the company - ANSWERSThe success of the company
At what level of impact does a company strategy decision need to be put to a
shareholder vote, under UK law? - ANSWERS25% of revenues/ profit/ value/ capital
What stance has the Council of Institutional Shareholders taken on dual class shares? -
ANSWERSIn favour of having a sunset clause which removes the dual class distinction
after 7 years.
What are the 5 themes of the UK Corp Governance Code? - ANSWERSboard
leadership & company purpose; division of responsibilities; composition, evaluation
sucsession; audit, risk and internal control; remuneration.
The expectation is that which board committees should be made up exclusively of
independent directors? - ANSWERSAudit, remuneration
The expectation is that which board committee should be made up of a majority of
independent directors? - ANSWERSNominations
Brundtland Report - ANSWERSpublisshed by the UN in the 1980s. 'Introduced' the
concept of sustainable development and how it can be achieved
Enrivonmental sustainability - ANSWERSMeetings needs and aspirations today without
compromising the ability of future generations to meet their needs.* (CFA def. Don't
necessairly agree with it. )
discount rate - ANSWERSinterest rate used to determine the future value of current
cash flows
when was the first green bond issued and by whom? - ANSWERS2007, EIB
Shadow pricing - ANSWERSimposition of a theoretical carbon price. Shadow carbon
pricing is a method of investment analysis that adds a hypothetical surcharge to the
price of projects that involve the creation of carbon emissions.
What is the most common method of waste disposal globally? - ANSWERSLandfill
IOSCO - ANSWERSNetwork of securities regulators
The agency problem - ANSWERSSeparation of ownership & control
Is the primary responsibility of the shareholders to the shareholders or to the success of
the company - ANSWERSThe success of the company
At what level of impact does a company strategy decision need to be put to a
shareholder vote, under UK law? - ANSWERS25% of revenues/ profit/ value/ capital
What stance has the Council of Institutional Shareholders taken on dual class shares? -
ANSWERSIn favour of having a sunset clause which removes the dual class distinction
after 7 years.
What are the 5 themes of the UK Corp Governance Code? - ANSWERSboard
leadership & company purpose; division of responsibilities; composition, evaluation
sucsession; audit, risk and internal control; remuneration.
The expectation is that which board committees should be made up exclusively of
independent directors? - ANSWERSAudit, remuneration
The expectation is that which board committee should be made up of a majority of
independent directors? - ANSWERSNominations
