CESGA Mock Exams Save Flashcards Learn Test Blocks Blast Match Which elements are necessary for assessing the business risk profile? Liquidity Litigation Costs Capital Structure Track progress 1 / 54 Profile Picture Created by Moses_Kamau23

CESGA Mock Exams Save Flashcards Learn Test Blocks Blast Match Which elements are necessary for assessing the business risk profile? Liquidity Litigation Costs Capital Structure Track progress 1 / 54 Profile Picture Created by Moses_Kamau2396 Created under 1 min ago Learn More Terms in this set (54) Original Which elements are necessary for assessing the business risk profile? Liquidity Litigation Costs Capital Structure Investment decision making is based on... raw data available in the market and produced by companies What does the first set of standards require under the CSRD proposal cover? the full range of sustainability matters: -environment -social -government -cross-cutting standards Which of the following KPIs of the European Federation of Financial Analysts Societies (EFFAS) Commission on ESG is NOT classified as long-term viability? ESG 24 - contribution to political parties Which is a commonly used norm in norm-based exclusions? Rio Declaration on Environment and Development How can real-world impacts be achieved? By raising and steering capital into sustainable use of proceeds cases (primary market) Which element does not have an impact on the "Discount Factor"? Innovation components of risk premium What is the main difference between the International Integrated Reporting Council (IIRC) Framework and other reporting standards? The need to project the company's vision of the future, and not so much its past performance According to the KPIs sector - SASB for the Topic "Materials Efficiency & Recycling", what are the Accounting metrics? - Total amount of waste from manufacturing; percentage recycled -Weight of end-of-life material covered; percentage recycled -Average recyclability of vehicles sold According to the KPMG Survey of Corporate Responsibility Reporting 2020... N100 companies are acknowledging climate change as a financial risk Which activities should the portfolio manager perform, using the Dashboard, in order to determine areas of analysis? -Understanding which ESG information is important for their investment process -Using the right Front-office system Regarding the role of ESG, what is part of macro-research? - higher female participation in work - demand for social services Advantage of raw data = transparency Are there geographic differences in terms of usefulness of ESG integration no Regarding composition and nomination, what is expected from an effective board? - majority of independent directors in nomination comittee - public policy on diversity Which ESG strategy is biased towards small-medium sized companies? sustainability themed investments In terms of Climate Overlap EFRAG - ISSB - SEC --> what is the Climate Disclosure Strategy? Governance What should investors do in order to understand the quality of transparency on ESG? - focus on improving the understanding of how an issuer is managing ESG - create plans on how to manage ESG risks and value-creation opportunities in the absence of comprehensive and comparable issuer disclosure What is the main critique concerning Social Impact Bonds? they may be an expensive method of operating social programs Is the Non-financial information directive 2014/95/UE relevant for the regulation of management dialogue No According to Arabesque, which activity is engaged in at the top level score combining features into easy-to-use S-Ray scores The legislative package under the EU Commission Action Plan on Sustainable Finance includes a unified EU classification system known as... Taxonomy, including harmonised criteria fir determining whether an economic activity is environmentally sustainable and a basis for future establishment of standards and a label of sustainable financial products Which are the topics of implementation & support services? -Timely delivery of screened universes and portfolios -Ongoing monitoring for compliance The Revised Shareholder Rights Directive 2017/828 EC was relevant for the regulation of engagement and voting at the EU level. What is NOT a consequence of this directive Strengthening shareholders' rights and decreased transparency on proxy advisors Do companies usually favour individual forms of ESG engagement or collective forms of ESG engagement? They usually favour individual forms of ESG engagement Which of the following is an example of discount due to additional capital expenditure? Upgrade equipment to improve energy performance. Two priorities for the sociological transition in the automotive sector are: -Urbanization (traffic jams) -Risk aversion, judicialization How do rating agencies obtain their information? Through public data, interviews and controversies (NGOs) The Revised Shareholder Rights Directive 2017/828 EC was relevant for the regulation of engagement and voting at the EU level. What is a consequence of this Directive? Increased transparency on proxy advisors Once the financial impact is qualified, do the investors need the extent on financial estimates to be quantified? Yes, information on ESG factors must be included. What is not a PRI-equivalent definition? Environmental integration. Amongst the four pillars in which the ICB metrics are organized, which are aligned with the SDGs? -Principles of governance -planet Which issues are analyzed in the Social Pillar 3 in reference to customer relations? -Product safety (product recall may have an important financial impact on the company's results) -New consumption practices: level of emissions, vehicle electrification, autonomous cars, car-sharing or car-pooling... Which is the last step for Sustainalytics? To combine the exposure to unmanageable risks and manageable risks that are unaddressed. Which is the ultimate objective in the asset-allocation decision? Assessing relative attractiveness of asset classes. There are several global milestones in the ESG mainstreaming process. What is NOT one of them? Rio Declaration on Green Finance What strategy is considered to pursue ESG opportunities? Impact Investing What are the key features of Impact Investing? -The investor's commitment to measure the social and environmental performance of underlying investments -The investor's commitment to report the social and environmental performance of underlying investments Which two of the sentences below about the CSRD are correct -The CSRD will amend the NFRD of 2014. -The CSRD will improve the accessibility of information Which of the following are the risks and/or opportunities regarding Energy and Ecological transition? -New entrants -Diesel-Gate: risks or opportunities depending on car manufacturers; increase in CO2 emissions with more gasoline cars What is analyzed in the Society Relationship Pillar? -States -Supranational organizations The Technical Expert Group (TEG) on Sustainable Finance... Intends to clarify how asset managers, insurance companies, and investment or insurance advisors should integrate sustainability risks What activities are considered as the second step for a quantitative analysis? -Assessing the impact of material financial factors on securities in their portfolio(s) and investment universe. -Adjusting financial forecasts and/or valuation models appropriately Globally, which of the following SRI strategies saw the most prominent increase in absolute terms of AuM (assets under management) between 2016 and 2020? ESG Integration What topics can environmental assessment be based on? -Use of natural resources -Waste management -Biodiversity. Which statement about UN PRI signatories is correct? The number of UN PRI signatories has seen its most prominent annual increase from 2019 to 2021. Which of the following does not cause difficulties in relation to data quality? Implemented internal controls. The speed of ESG integration is... Low despite the comprehensive and high-level commitment of investors and policy makers. The High-Level Expert Group (HLEG) recommendations form the basis of the action plan on: sustainable finance adopted by the Commission in March 2018. Regarding ESG value-drivers, which approach/policy initiatives are announced in the Social Pillar? -Talent management: the company has identified the issue as a key one -HR efficiency: a reorganization period is coming to an end From the investor's perspective, which of the following are Key Barriers for engagement success? -Lack of buy-in from clients and/or top management for ESG-related investment activities. -Insufficient mechanisms to guarantee that asset managers conduct successful engagements. Which of the main ESG approaches is among the most wide spread in listed equity? Norm-based exclusions.