CFA ESG Certificate - Practice Exam
Questions & Answers
Companies who are UN Global Compact and PRI signees will have investment
strategies that? - ANSWER Incorporate ESG into the investment process
What is an indirect environmental impact of a paper company cutting trees and
transporting them to production plants? - ANSWER a natural regulator of carbon dioxide
is destroyed
What is the result of an analyst failing to correctly model risks and opportunities
associated with ESG - ANSWER systematic underestimation of high ESG performers
and over estimation of low ESG performers
Wha t are you least likely to take into consideration when deciding to vote on
shareholder resolutions - ANSWER whether the resolution falls under governance or
not
What corp governance structures do the US and France have in common? - ANSWER
CEO and Chairman of the board are usually one person
Responsible investing is best described as - ANSWER ESG factors taken into account
to manage risk and deliver financial return
Companies could improve climate resilience in the near-term by... - ANSWER improving
adaptation methods
Which comment on ESG databases and integration is most accurate? - ANSWER
incomplete data CAN be material
what challenges can auditors face when auditing a company? - ANSWER - mislead by
management
- inaccuracy of company financials
- audits based on samples, not all figures
- only segments of the company deemed material are reviewed
how should ESG portfolio management remuneration alignment be designed in the
mandate - ANSWER time frames should reflect performance experience by clients
which ESG index provider specifically consider governance - ANSWER Reuters
what is the first stage in portfolio management process that integrates ESG - ANSWER
develop IPS
Questions & Answers
Companies who are UN Global Compact and PRI signees will have investment
strategies that? - ANSWER Incorporate ESG into the investment process
What is an indirect environmental impact of a paper company cutting trees and
transporting them to production plants? - ANSWER a natural regulator of carbon dioxide
is destroyed
What is the result of an analyst failing to correctly model risks and opportunities
associated with ESG - ANSWER systematic underestimation of high ESG performers
and over estimation of low ESG performers
Wha t are you least likely to take into consideration when deciding to vote on
shareholder resolutions - ANSWER whether the resolution falls under governance or
not
What corp governance structures do the US and France have in common? - ANSWER
CEO and Chairman of the board are usually one person
Responsible investing is best described as - ANSWER ESG factors taken into account
to manage risk and deliver financial return
Companies could improve climate resilience in the near-term by... - ANSWER improving
adaptation methods
Which comment on ESG databases and integration is most accurate? - ANSWER
incomplete data CAN be material
what challenges can auditors face when auditing a company? - ANSWER - mislead by
management
- inaccuracy of company financials
- audits based on samples, not all figures
- only segments of the company deemed material are reviewed
how should ESG portfolio management remuneration alignment be designed in the
mandate - ANSWER time frames should reflect performance experience by clients
which ESG index provider specifically consider governance - ANSWER Reuters
what is the first stage in portfolio management process that integrates ESG - ANSWER
develop IPS
