CESGA (Certified Environmental, Social And Governance Analyst) Exam
CESGA (CERTIFIED ENVIRONMENTAL, SOCIAL AND GOVERNANCE
ANALYST) EXAM INCLUDES ACCURATE AND VERIFIED QUESTIONS
COVERING ESG INTEGRATION IN INVESTMENT DECISIONS, CORPORATE
GOVERNANCE, SUSTAINABILITY REPORTING STANDARDS
Company Barriers to ESG Integration - ANSWER-measuring ESG performance, concerns about
underperformance, lack of ESG data, costs associated with ESG integration, regulations,
balancing investment needs for growth with ESG goals
Investor Barriers to ESG Integration - ANSWER-lack of comparability across firms, lack of
standards in reporting, costs of gathering and analyzing ESG data, reliability and materiality of
data
EU Action Plan for Sustainable Growth - ANSWER-an action plan issued in March 2018 for
financing sustainable growth to connect finance with sustainability, includes ten actions divided
into three categories
Three Categories of EU Action Plan - ANSWER--reorienting capital flows towards a more
sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
Regulation - ANSWER-a binding legislative act for all Member States and overrules national laws
(ex: taxonomy regulation, sustainable finance disclosure regulation)
Directive - ANSWER-a legislative act setting objectives that all Member States must reach and
translate into national laws (ex: Corporate Sustainability Reporting Directive, Corporate
Sustainability Due Diligence Directive)
1|Page
, CESGA (Certified Environmental, Social And Governance Analyst) Exam
Delegated Act - ANSWER-a non-legislative act adopted by the Commission to amend the less
essential part of the legislation (ex: Taxonomy Climate Delegated Act, Environmental Delegated
Act)
Non-Financial Reporting Directive (NFRD) - ANSWER-requires companies with > 500 employees
to include non-financial statements in their annual reports from 2018 onwards
Corporate Sustainability Reporting Directive (CSRD) - ANSWER-a sustainability reporting direct
that replaced the NFRD in 2022; builds on the NFRD with more detailed reporting requirements
and a certification requirement
CSRD Changes - ANSWER--short, medium, and long-term assessments
-reaffirms the double materiality approach
-companies must report based on the ESRS
-audit requirement
CSRD Scope - ANSWER-covers corporations that meet 2/3 criteria:
-over 250 employees
-more than 40m euro turnover
-more than 20m euro total assets
European Sustainability Reporting Standards (ESRS) - ANSWER-a set of standards used to apply
the CSRD regulations (cross-cutting, environmental, social, governance)
Sustainable Economic Activities - ANSWER-activities that:
-make a substantial contribution to at least one of the EU's climate and environmental
objectives
- do not significantly harm any of these objectives
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, CESGA (Certified Environmental, Social And Governance Analyst) Exam
-meeting minimum safeguards
-align with science-based technical screening criteria
Environmental Objectives of EU Taxonomy - ANSWER-1. climate change mitigation
2. climate change adaptation
3. sustainable use and protection of water and marine resources
4. transition to a circular economy
5. pollution prevention and control
6. protection and restoration of biodiversity and ecosystems
Climate Delegated Act - ANSWER-technical screening criteria for the first two objectives about
climate change
Environmental Delegated Act - ANSWER-technical screening criteria for the remaining four
objectives
Future Extended Taxonomy - ANSWER-a traffic light system with two additional labels:
-green: taxonomy aligned activities
-red: significant negative impact on environment
-amber: intermediate impact with performances between substantial contribution and do no
significant harm
Corporate Sustainability Due Diligence Directive (CSDDD) - ANSWER-requires companies to
ensure human rights and environmental protection throughout their global value chains
European Single Access Point (ESAP) - ANSWER-aims to provide a public and centralized access
to financial and sustainability data
3|Page
, CESGA (Certified Environmental, Social And Governance Analyst) Exam
Sustainable Finance Disclosure Regulation (SFDR) - ANSWER-aims to improve transparency with
clear and consistent disclosure requirements at the entity/firm level and product level
According to empirical evidence based on surveys of perception of ESG and performance, since
2017 the perception of ESG and performance has - ANSWER-increased
Does PRI monitor the number of signatories and the number of asset owners? - ANSWER-Yes
Carbon Disclosure Project - ANSWER-companies responding to CDP represent more than 50% of
global market cap
How do rating agencies obtain their information? - ANSWER-public data, interviews, and
controversies (NGOs)
In light of global risks and challenges, corporations need to consider and incorporate - ANSWER-
double materiality
Sustainalytics ESG Risk Ratings Methodology - ANSWER-1. identify company's exposure to
material ESG issues
2. examine shares of manageable and unmanageable risks
3. company's performance is evaluated based on policies, programs, practices, and quantitative
measures
4. ESG risk rating is calculated by adding the amount of unmanaged risk for each ESG issue
Which is one of the objectives of the alliances in terms of use of ESG data?
4|Page
CESGA (CERTIFIED ENVIRONMENTAL, SOCIAL AND GOVERNANCE
ANALYST) EXAM INCLUDES ACCURATE AND VERIFIED QUESTIONS
COVERING ESG INTEGRATION IN INVESTMENT DECISIONS, CORPORATE
GOVERNANCE, SUSTAINABILITY REPORTING STANDARDS
Company Barriers to ESG Integration - ANSWER-measuring ESG performance, concerns about
underperformance, lack of ESG data, costs associated with ESG integration, regulations,
balancing investment needs for growth with ESG goals
Investor Barriers to ESG Integration - ANSWER-lack of comparability across firms, lack of
standards in reporting, costs of gathering and analyzing ESG data, reliability and materiality of
data
EU Action Plan for Sustainable Growth - ANSWER-an action plan issued in March 2018 for
financing sustainable growth to connect finance with sustainability, includes ten actions divided
into three categories
Three Categories of EU Action Plan - ANSWER--reorienting capital flows towards a more
sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
Regulation - ANSWER-a binding legislative act for all Member States and overrules national laws
(ex: taxonomy regulation, sustainable finance disclosure regulation)
Directive - ANSWER-a legislative act setting objectives that all Member States must reach and
translate into national laws (ex: Corporate Sustainability Reporting Directive, Corporate
Sustainability Due Diligence Directive)
1|Page
, CESGA (Certified Environmental, Social And Governance Analyst) Exam
Delegated Act - ANSWER-a non-legislative act adopted by the Commission to amend the less
essential part of the legislation (ex: Taxonomy Climate Delegated Act, Environmental Delegated
Act)
Non-Financial Reporting Directive (NFRD) - ANSWER-requires companies with > 500 employees
to include non-financial statements in their annual reports from 2018 onwards
Corporate Sustainability Reporting Directive (CSRD) - ANSWER-a sustainability reporting direct
that replaced the NFRD in 2022; builds on the NFRD with more detailed reporting requirements
and a certification requirement
CSRD Changes - ANSWER--short, medium, and long-term assessments
-reaffirms the double materiality approach
-companies must report based on the ESRS
-audit requirement
CSRD Scope - ANSWER-covers corporations that meet 2/3 criteria:
-over 250 employees
-more than 40m euro turnover
-more than 20m euro total assets
European Sustainability Reporting Standards (ESRS) - ANSWER-a set of standards used to apply
the CSRD regulations (cross-cutting, environmental, social, governance)
Sustainable Economic Activities - ANSWER-activities that:
-make a substantial contribution to at least one of the EU's climate and environmental
objectives
- do not significantly harm any of these objectives
2|Page
, CESGA (Certified Environmental, Social And Governance Analyst) Exam
-meeting minimum safeguards
-align with science-based technical screening criteria
Environmental Objectives of EU Taxonomy - ANSWER-1. climate change mitigation
2. climate change adaptation
3. sustainable use and protection of water and marine resources
4. transition to a circular economy
5. pollution prevention and control
6. protection and restoration of biodiversity and ecosystems
Climate Delegated Act - ANSWER-technical screening criteria for the first two objectives about
climate change
Environmental Delegated Act - ANSWER-technical screening criteria for the remaining four
objectives
Future Extended Taxonomy - ANSWER-a traffic light system with two additional labels:
-green: taxonomy aligned activities
-red: significant negative impact on environment
-amber: intermediate impact with performances between substantial contribution and do no
significant harm
Corporate Sustainability Due Diligence Directive (CSDDD) - ANSWER-requires companies to
ensure human rights and environmental protection throughout their global value chains
European Single Access Point (ESAP) - ANSWER-aims to provide a public and centralized access
to financial and sustainability data
3|Page
, CESGA (Certified Environmental, Social And Governance Analyst) Exam
Sustainable Finance Disclosure Regulation (SFDR) - ANSWER-aims to improve transparency with
clear and consistent disclosure requirements at the entity/firm level and product level
According to empirical evidence based on surveys of perception of ESG and performance, since
2017 the perception of ESG and performance has - ANSWER-increased
Does PRI monitor the number of signatories and the number of asset owners? - ANSWER-Yes
Carbon Disclosure Project - ANSWER-companies responding to CDP represent more than 50% of
global market cap
How do rating agencies obtain their information? - ANSWER-public data, interviews, and
controversies (NGOs)
In light of global risks and challenges, corporations need to consider and incorporate - ANSWER-
double materiality
Sustainalytics ESG Risk Ratings Methodology - ANSWER-1. identify company's exposure to
material ESG issues
2. examine shares of manageable and unmanageable risks
3. company's performance is evaluated based on policies, programs, practices, and quantitative
measures
4. ESG risk rating is calculated by adding the amount of unmanaged risk for each ESG issue
Which is one of the objectives of the alliances in terms of use of ESG data?
4|Page
