8/29/25, 6:13 AM CFA ESG Exam
CFA ESG Exam (Sustainable Investing Certificate) Complete
Study Guide PDF \complete questions and accurate detailed
answers \verified 100% \Already Graded A+ \Latest update 2025-
2026
Which of the following ESG performance and corporate financial performance are
statements is most positively correlated
accurate? The majority of
studies suggest that:
A.) a company with high
ESG standards increases
its cost of capital.
B.) ESG performance and
investment fund
performance are
positively correlated
C.) ESG performance
and corporate financial
performance are
positively correlated.
Greenwashing most likely Companies making misleading claims about their environmental
refers to: practices
A.) countries exporting
hazardous waste to other
countries.
B.) companies making
misleading claims about
their environmental
practices.
C.) companies introducing
substances into the
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,8/29/25, 6:13 AM CFA ESG Exam
environment that are
harmful.
The standard for the UN GRI
Global Compact is overseen
by the:
A.) Global Reporting Initiative
(GRI).
B.) Value Reporting Foundation
(VRF).
C.) International Business
Council (IBC).
In responding to a request for by applying a tilt to the portfolio's exposures.
proposal, a fund manager
proposes selecting the least
carbon-intensive of the
acceptable investments in
each sector. The assets
owner's investment mandate
is most likely aligned with
integrating ESG factors:
A. as a threshold requirement.
B. as a basis for stewardship
engagement.
C. by applying a tilt to
the portfolio's
exposures.
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Which of the following UN Shareholder Rights Directive (SRD)
requires investors to act with
a more long-term focus?
A.) Stockholm Resilience Centre
B.) Financial Stability Board
(FSB).
C.) UN Shareholder Rights
Directive (SRD)
Which of the following Shareholder engagement
types of responsible
investing is not related to
portfolio construction.
A.) Thematic investing
B.) Shareholder engagement
C.) Socially responsible
investing (SRI)
Which of the following Best-in-class investment
responsible
investment approaches
most likely
incorporates positive
screening?
A.) Faith-based investment
B.) Values-driven investment
C.) Best-in-class investment
Double materiality is best double materiality is an extension of financial
described as: materiality that considers the impacts of a company
A.) an extension of financial
on the climate or any other ESG factor
materiality that considers
the impacts of a company
on the climate or any
other ESG factor.
B.) an accounting
framework with three
parts: social, environmental
or ecolog-ical), and
financial (people, planet,
and profit).
C.) investments made with the
specific
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, 8/29/25, 6:13 AM CFA ESG Exam
intent of generating positive,
measurable
social and environmental
impact alongside a
financial return.
Universal owners are best universal owners are large institutional investors that have
described as: diversified holdings
A.) large institutional
investors that have
diversified holdings
B.) retail investors that
diversify through index
funds or ETFs.
C.) stakeholders impacted by
externalized
environmental and social
costs.
Which of the following Internalization refers to all measures to ensure
statements about the externalities are reflected in the prices of commercial
internalization of goods and services.
externalities is most
accurate?
A.) Internalization of negative
externalities can be
achieved only by regulatory
means.
B.) Internalization through
taxation is an innovative,
new idea to address
exter- nalized pollution
C.) Internalization refers to
all measures to ensure
externalities are reflected
in the prices of commercial
goods and services.
/ 4/122
CFA ESG Exam (Sustainable Investing Certificate) Complete
Study Guide PDF \complete questions and accurate detailed
answers \verified 100% \Already Graded A+ \Latest update 2025-
2026
Which of the following ESG performance and corporate financial performance are
statements is most positively correlated
accurate? The majority of
studies suggest that:
A.) a company with high
ESG standards increases
its cost of capital.
B.) ESG performance and
investment fund
performance are
positively correlated
C.) ESG performance
and corporate financial
performance are
positively correlated.
Greenwashing most likely Companies making misleading claims about their environmental
refers to: practices
A.) countries exporting
hazardous waste to other
countries.
B.) companies making
misleading claims about
their environmental
practices.
C.) companies introducing
substances into the
/ 1/122
,8/29/25, 6:13 AM CFA ESG Exam
environment that are
harmful.
The standard for the UN GRI
Global Compact is overseen
by the:
A.) Global Reporting Initiative
(GRI).
B.) Value Reporting Foundation
(VRF).
C.) International Business
Council (IBC).
In responding to a request for by applying a tilt to the portfolio's exposures.
proposal, a fund manager
proposes selecting the least
carbon-intensive of the
acceptable investments in
each sector. The assets
owner's investment mandate
is most likely aligned with
integrating ESG factors:
A. as a threshold requirement.
B. as a basis for stewardship
engagement.
C. by applying a tilt to
the portfolio's
exposures.
/ 2/122
,8/29/25, 6:13 AM CFA ESG Exam
Which of the following UN Shareholder Rights Directive (SRD)
requires investors to act with
a more long-term focus?
A.) Stockholm Resilience Centre
B.) Financial Stability Board
(FSB).
C.) UN Shareholder Rights
Directive (SRD)
Which of the following Shareholder engagement
types of responsible
investing is not related to
portfolio construction.
A.) Thematic investing
B.) Shareholder engagement
C.) Socially responsible
investing (SRI)
Which of the following Best-in-class investment
responsible
investment approaches
most likely
incorporates positive
screening?
A.) Faith-based investment
B.) Values-driven investment
C.) Best-in-class investment
Double materiality is best double materiality is an extension of financial
described as: materiality that considers the impacts of a company
A.) an extension of financial
on the climate or any other ESG factor
materiality that considers
the impacts of a company
on the climate or any
other ESG factor.
B.) an accounting
framework with three
parts: social, environmental
or ecolog-ical), and
financial (people, planet,
and profit).
C.) investments made with the
specific
/ 3/122
, 8/29/25, 6:13 AM CFA ESG Exam
intent of generating positive,
measurable
social and environmental
impact alongside a
financial return.
Universal owners are best universal owners are large institutional investors that have
described as: diversified holdings
A.) large institutional
investors that have
diversified holdings
B.) retail investors that
diversify through index
funds or ETFs.
C.) stakeholders impacted by
externalized
environmental and social
costs.
Which of the following Internalization refers to all measures to ensure
statements about the externalities are reflected in the prices of commercial
internalization of goods and services.
externalities is most
accurate?
A.) Internalization of negative
externalities can be
achieved only by regulatory
means.
B.) Internalization through
taxation is an innovative,
new idea to address
exter- nalized pollution
C.) Internalization refers to
all measures to ensure
externalities are reflected
in the prices of commercial
goods and services.
/ 4/122
