SASB FSA CREDENTIAL LEVEL I EXAM 2024/25
QUESTIONS WITH 100% VERIFIED
SOLUTIONS!!
What are some large-scale issues that have profound effects on business
outcomes? Answer - population growth, resource constraints, urbanization,
technological innovation, and climate change
What kinds of information do SASB standards ask for? Answer - financially
material, decision-useful, and cost-effective sustainability information for
investors
What do investors use sustainability information for? Answer - To improve
their ability to achieve above-market returns, reduce risk and volatility, protect
against diminished returns, and improve environmental and social investment
outcomes (with financial returns as an equivalent or secondary consideration).
What have some studies shown as positive benefits of ESG and sustainability
integration for investors and companies? Answer - - Companies committed to
sustainability outperform in stock market performance.
- Companies focused on sustainability achieve "reduced costs, improved
worker productivity, mitigated risk potential, and created revenue-generating
opportunities."
- Companies with higher sustainability or ESG ratings have lower volatility of
price and earnings per share (EPS)
- Sustainability standards lower the cost of capital for companies
,How is sustainability information useful to equity and fixed-income investors?
Answer - They use sustainability information to:
- support risk analysis
- identify signals of future volatility and value declines
- protect portfolio value
How is sustainability information useful to private equity investors? Answer -
private equity investors recognize ESG investing as a means to:
- improve portfolio performance
- mitigate risk
- generate alpha
How do 40% of surveyed CEOs see sustainability as contributing to business
growth and value? Answer - They see revenue growth and creation of
"genuine value" through:
- risk mitigation
- cost reduction
- competitive advantage gained through "new markets, products and services,
resource productivity and efficiency"
***Chapter 1 Explanation Question: Why are investors demanding quality
sustainability information? Answer - Investors source quality sustainability
information to meet their investment goals (i.e. generally to achieve a profit),
but also use sustainability information to:
- achieve above-market returns
- assess risk to protect against diminished returns and major losses
- evaluate the predictability of investment outcomes
, ***Chapter 1 Explanation Question: What factors drive demand for quality
sustainability information within companies? Answer - Sustainability
information can contribute to near, medium, and long-term company success
by improving the management of sustainability-related risks and opportunities
through measuring and managing KPIs.
***Chapter 1 Explanation Question: Besides companies and their investors,
what other institutions influence demand for sustainability information across
capital markets? Answer - - International, national, and local policy-based
initiatives (they stimulate sustainability disclosure by passing recommendations
and guidance)
- Regulatory requirements (for the disclosure of sustainability information from
publicly-listed companies)
What were some effects of the Great Depression? Answer - - bank failures
- record unemployment rates
- declining income
What were some of the findings of the investigation to what caused the Great
Depression? Answer - Bankers and companies failed to fully disclose
information about the companies whose securities were being offered for sale,
creating widespread securities sales using false or misleading information.
What are the two purposes for the U.S. SEC's existence? Answer - 1. to protect
investors
2. to influence corporate behavior
What is the "total-mix" concept? Answer - A concept determined by a U.S.
Supreme Court ruling that notes information is deemed to be material if the
information is significantly likely to be considered by a reasonable investor in
QUESTIONS WITH 100% VERIFIED
SOLUTIONS!!
What are some large-scale issues that have profound effects on business
outcomes? Answer - population growth, resource constraints, urbanization,
technological innovation, and climate change
What kinds of information do SASB standards ask for? Answer - financially
material, decision-useful, and cost-effective sustainability information for
investors
What do investors use sustainability information for? Answer - To improve
their ability to achieve above-market returns, reduce risk and volatility, protect
against diminished returns, and improve environmental and social investment
outcomes (with financial returns as an equivalent or secondary consideration).
What have some studies shown as positive benefits of ESG and sustainability
integration for investors and companies? Answer - - Companies committed to
sustainability outperform in stock market performance.
- Companies focused on sustainability achieve "reduced costs, improved
worker productivity, mitigated risk potential, and created revenue-generating
opportunities."
- Companies with higher sustainability or ESG ratings have lower volatility of
price and earnings per share (EPS)
- Sustainability standards lower the cost of capital for companies
,How is sustainability information useful to equity and fixed-income investors?
Answer - They use sustainability information to:
- support risk analysis
- identify signals of future volatility and value declines
- protect portfolio value
How is sustainability information useful to private equity investors? Answer -
private equity investors recognize ESG investing as a means to:
- improve portfolio performance
- mitigate risk
- generate alpha
How do 40% of surveyed CEOs see sustainability as contributing to business
growth and value? Answer - They see revenue growth and creation of
"genuine value" through:
- risk mitigation
- cost reduction
- competitive advantage gained through "new markets, products and services,
resource productivity and efficiency"
***Chapter 1 Explanation Question: Why are investors demanding quality
sustainability information? Answer - Investors source quality sustainability
information to meet their investment goals (i.e. generally to achieve a profit),
but also use sustainability information to:
- achieve above-market returns
- assess risk to protect against diminished returns and major losses
- evaluate the predictability of investment outcomes
, ***Chapter 1 Explanation Question: What factors drive demand for quality
sustainability information within companies? Answer - Sustainability
information can contribute to near, medium, and long-term company success
by improving the management of sustainability-related risks and opportunities
through measuring and managing KPIs.
***Chapter 1 Explanation Question: Besides companies and their investors,
what other institutions influence demand for sustainability information across
capital markets? Answer - - International, national, and local policy-based
initiatives (they stimulate sustainability disclosure by passing recommendations
and guidance)
- Regulatory requirements (for the disclosure of sustainability information from
publicly-listed companies)
What were some effects of the Great Depression? Answer - - bank failures
- record unemployment rates
- declining income
What were some of the findings of the investigation to what caused the Great
Depression? Answer - Bankers and companies failed to fully disclose
information about the companies whose securities were being offered for sale,
creating widespread securities sales using false or misleading information.
What are the two purposes for the U.S. SEC's existence? Answer - 1. to protect
investors
2. to influence corporate behavior
What is the "total-mix" concept? Answer - A concept determined by a U.S.
Supreme Court ruling that notes information is deemed to be material if the
information is significantly likely to be considered by a reasonable investor in
