CFA /
ESG
/ /
Certificate
/ /
Exam Questions With Correct Answers
/ // // // //
What //is //ESG //investing?
a) /
/an /
/approach /
/to /
/managing /
/companies /
/that /
/explicitly /
/acknowledges /
/the /
/relevance /
/of //environmental, //social, //and //governance //factors //in //corporate //decision //making
b) /
/an /
/approach /
/to /
/managing /
/companies /
/that /
/explicitly /
/acknowledges /
/the /
/relevance //of //environmental, //social, //and //economic //factors //in //investment //decision //making
c) /
/an /
,/approach /
/to /
/managing //assets //where //investors //explicitly //acknowledge //the //relevance //of //environmental,
//social, //and //governance //factors //in //their //investment //decisions
d) /
/an /
/approach /
/to /
/managing //assets //where //investors //explicitly //acknowledge //the //relevance //of //environmental,
//social, //and //economic //factors //in //corporate //engagement //- //CORRECT //ANSWERS(S)✔✔c
Which //of //the //following //is //not //an //example //of //a //social //factor?
a) //Labor //rights
b) //Local //communities
c) //Product //safety
d) //Biodiversity //- //CORRECT //ANSWERS(S)✔✔d
In //what //sense //are //ESG //considerations //non-financial?
a) //They //are //difficult //to //value //precisely //and //difficult //to //time
b) //They //are //issues //that //will //never //turn //into //financials
c) //They //sit //in //a //different //category //of //performance
d) //They //can //only //every //be //measured //qualitatively //- //CORRECT //ANSWERS(S)✔✔a
For /
/which /
/of /
/the /
/following //sectors //will //the //management //of //greenhouse //gas //emissions //be //most //material?
a) //Software
b) //Recruitment
,c) //Power //generation
d) //Fund //management //- //CORRECT //ANSWERS(S)✔✔c
Which /
/of /
/the /
/following //is //not //a //typical //method //by //which //ESG //is //reflected //in //investment //approaches?
a) //Integrating //ESG //into //investment //decision //making
b) //Engaging //actively //with //companies //on //ESG //matters
c) //Engaging //in //public //policy //debates //on //ESG //issues
d) /
/Disclosing /
/the //investor's //corporate //social //responsibility //activities //- //CORRECT //ANSWERS(S)✔✔d
Which //of //the //following //is //not //a //form //of //ESG //investment?
a) //Valuation //investment
b) //Ethical //investment
c) //Thematic //investment
d) //Impact //investment //- //CORRECT //ANSWERS(S)✔✔a
What //are //the //four //broad //groupings //of //issues //covered //by //the //UN //Global //Compact?
a) //Environmental, //social, //governance, //and //impact
b) //Human //rights, //labor, //environment, //and //anti //corruption
c) //Poverty, //diversity, //sustainability, //and //transparency
d) //Education, //development, //fairness, //independence //- //CORRECT //ANSWERS(S)✔✔b
What //is //not //one //of //the //three //P's //in //the //triple //bottom //line //concept?
a) //People
, b) //Planet
c) //Profit
d) //Principle //- //CORRECT //ANSWERS(S)✔✔d
Which //of //the //following //statements //is //true //about //best-in-class //investments?
a) //It //involves //selecting //only //the //companies //that //overcome //a //defined //ranking //hurdle
b) /
/It /
/cannot /
/be /
/used /
/to //maintain //key //characteristics, //such //as //regional //and //sectoral //diversification //of //an //index
c) //It //refers //to //selecting //companies //that //fall //under //a //sustainability-related //theme
d) /
/It /
/refers /
/to /
/allocating /
/capital //to //assets //that //best //mitigate //climate //change //- //CORRECT //ANSWERS(S)✔✔a
Which //of //the //following //sectors //is //NOT //typically //excluded //by //ethical //and //faith-
based //investors?
a) //Tobacco
b) //Alcohol
c) //Controversial //weapons
d) //Technology //- //CORRECT //ANSWERS(S)✔✔d
The //efficiency //of //shareholder //engagement //does //NOT //depend //on...
a) //the //scale //of //ownership //of //the //individual //investor //or //the //collective //initiative
b) //the //quality //of //the //engagement //dialogue //and //method //used
ESG
/ /
Certificate
/ /
Exam Questions With Correct Answers
/ // // // //
What //is //ESG //investing?
a) /
/an /
/approach /
/to /
/managing /
/companies /
/that /
/explicitly /
/acknowledges /
/the /
/relevance /
/of //environmental, //social, //and //governance //factors //in //corporate //decision //making
b) /
/an /
/approach /
/to /
/managing /
/companies /
/that /
/explicitly /
/acknowledges /
/the /
/relevance //of //environmental, //social, //and //economic //factors //in //investment //decision //making
c) /
/an /
,/approach /
/to /
/managing //assets //where //investors //explicitly //acknowledge //the //relevance //of //environmental,
//social, //and //governance //factors //in //their //investment //decisions
d) /
/an /
/approach /
/to /
/managing //assets //where //investors //explicitly //acknowledge //the //relevance //of //environmental,
//social, //and //economic //factors //in //corporate //engagement //- //CORRECT //ANSWERS(S)✔✔c
Which //of //the //following //is //not //an //example //of //a //social //factor?
a) //Labor //rights
b) //Local //communities
c) //Product //safety
d) //Biodiversity //- //CORRECT //ANSWERS(S)✔✔d
In //what //sense //are //ESG //considerations //non-financial?
a) //They //are //difficult //to //value //precisely //and //difficult //to //time
b) //They //are //issues //that //will //never //turn //into //financials
c) //They //sit //in //a //different //category //of //performance
d) //They //can //only //every //be //measured //qualitatively //- //CORRECT //ANSWERS(S)✔✔a
For /
/which /
/of /
/the /
/following //sectors //will //the //management //of //greenhouse //gas //emissions //be //most //material?
a) //Software
b) //Recruitment
,c) //Power //generation
d) //Fund //management //- //CORRECT //ANSWERS(S)✔✔c
Which /
/of /
/the /
/following //is //not //a //typical //method //by //which //ESG //is //reflected //in //investment //approaches?
a) //Integrating //ESG //into //investment //decision //making
b) //Engaging //actively //with //companies //on //ESG //matters
c) //Engaging //in //public //policy //debates //on //ESG //issues
d) /
/Disclosing /
/the //investor's //corporate //social //responsibility //activities //- //CORRECT //ANSWERS(S)✔✔d
Which //of //the //following //is //not //a //form //of //ESG //investment?
a) //Valuation //investment
b) //Ethical //investment
c) //Thematic //investment
d) //Impact //investment //- //CORRECT //ANSWERS(S)✔✔a
What //are //the //four //broad //groupings //of //issues //covered //by //the //UN //Global //Compact?
a) //Environmental, //social, //governance, //and //impact
b) //Human //rights, //labor, //environment, //and //anti //corruption
c) //Poverty, //diversity, //sustainability, //and //transparency
d) //Education, //development, //fairness, //independence //- //CORRECT //ANSWERS(S)✔✔b
What //is //not //one //of //the //three //P's //in //the //triple //bottom //line //concept?
a) //People
, b) //Planet
c) //Profit
d) //Principle //- //CORRECT //ANSWERS(S)✔✔d
Which //of //the //following //statements //is //true //about //best-in-class //investments?
a) //It //involves //selecting //only //the //companies //that //overcome //a //defined //ranking //hurdle
b) /
/It /
/cannot /
/be /
/used /
/to //maintain //key //characteristics, //such //as //regional //and //sectoral //diversification //of //an //index
c) //It //refers //to //selecting //companies //that //fall //under //a //sustainability-related //theme
d) /
/It /
/refers /
/to /
/allocating /
/capital //to //assets //that //best //mitigate //climate //change //- //CORRECT //ANSWERS(S)✔✔a
Which //of //the //following //sectors //is //NOT //typically //excluded //by //ethical //and //faith-
based //investors?
a) //Tobacco
b) //Alcohol
c) //Controversial //weapons
d) //Technology //- //CORRECT //ANSWERS(S)✔✔d
The //efficiency //of //shareholder //engagement //does //NOT //depend //on...
a) //the //scale //of //ownership //of //the //individual //investor //or //the //collective //initiative
b) //the //quality //of //the //engagement //dialogue //and //method //used
