ESG CFA CERTIFICATE PRACTICE QUESTIONS
Which of the following investment approaches focuses on enhancing the long-term
value of an investment portfolio?
a. ESG investing
b. Impact investing
c. Conventional financial investing - Answers- A
Which of the following ESG investments addresses the bottom of the pyramid (BOP)?
a. Green bonds
b. Micro-finance bonds
c. Fund investing in smart grid technology - Answers- B
Which of the following is a minimum requirement for signatories to the Principles of
Responsible Investment (PRI)? Members must:
a. be active owners in the companies in which they are invested.
b. seek appropriate disclosure on ESG issues by the investee companies.
c. have senior-level commitment and accountability mechanisms for responsible
investment implementation. - Answers- C
Which of the following organizations developed a toolkit for establishing long-term,
sustainable investment mandates?
a. Principles of Responsible Investment (PRI)
b. International Corporate Governance Network (ICGN)
c. University of Cambridge Institute for Sustainability Leadership - Answers- C
Which of the following statements is most accurate? The majority of studies suggest
that:
a. good ESG standards increase the cost of capital for a company.
b. ESG performance and investment fund performance are positively correlated.
c. ESG performance and corporate financial performance are positively correlated -
Answers- C
Greenwashing refers to:
a. countries exporting hazardous waste to other countries.
b. companies making misleading claims about their environmental practices.
c. companies introducing substances into the environment that are harmful. - Answers-
B
The ESG reporting framework used by the United Nations Global Compact signatories
is published by the:
a. Global Reporting Initiative (GRI)
b. Value Reporting Foundation (VRF).
c. International Business Council (IBC). - Answers- A
Which of the following investment approaches focuses on enhancing the long-term
value of an investment portfolio?
a. ESG investing
b. Impact investing
c. Conventional financial investing - Answers- A
Which of the following ESG investments addresses the bottom of the pyramid (BOP)?
a. Green bonds
b. Micro-finance bonds
c. Fund investing in smart grid technology - Answers- B
Which of the following is a minimum requirement for signatories to the Principles of
Responsible Investment (PRI)? Members must:
a. be active owners in the companies in which they are invested.
b. seek appropriate disclosure on ESG issues by the investee companies.
c. have senior-level commitment and accountability mechanisms for responsible
investment implementation. - Answers- C
Which of the following organizations developed a toolkit for establishing long-term,
sustainable investment mandates?
a. Principles of Responsible Investment (PRI)
b. International Corporate Governance Network (ICGN)
c. University of Cambridge Institute for Sustainability Leadership - Answers- C
Which of the following statements is most accurate? The majority of studies suggest
that:
a. good ESG standards increase the cost of capital for a company.
b. ESG performance and investment fund performance are positively correlated.
c. ESG performance and corporate financial performance are positively correlated -
Answers- C
Greenwashing refers to:
a. countries exporting hazardous waste to other countries.
b. companies making misleading claims about their environmental practices.
c. companies introducing substances into the environment that are harmful. - Answers-
B
The ESG reporting framework used by the United Nations Global Compact signatories
is published by the:
a. Global Reporting Initiative (GRI)
b. Value Reporting Foundation (VRF).
c. International Business Council (IBC). - Answers- A