CESGA TEST BANK UPDATED QUESTIONS
AND VERIFIED ANSWERS SUCCESS KIT
●● Environmental factors
Answer: Pertain to the natural world
●● Social factors
Answer: Affect the lives of humans
●● Governance factors
Answer: Involve issues tied to countries and/or jurisdictions or are
common practice in an industry, as well as the interests of broader
stakeholder groups
●● Environmental examples
Answer: Climate change, resource depletion, waste, pollution,
deforestation
●● Social examples
Answer: Human rights, modern slavery, health and safety, working
conditions, employee relations
●● Governance examples
, Answer: Bribery and corruption, executive pay, board diversity and
structure, trade association, lobbying, donations, tax strategy
●● Responsible investment
Answer: Strategy and practice to incorporate ESG factors into
investment decisions and active ownership, umbrella term
●● Socially responsible investment (SRI)
Answer: Apply social and environmental criteria in evaluating
companies
●● Best-in-class investment (positive screening)
Answer: Select only the companies that overcome a defined ranking
hurdle, established using ESG criteria within each sector or industry
●● Sustainable investment
Answer: Selection of assets that contribute in some way to a sustainable
economy, minimizing natural and social resource depletion. Can also
screen out activities contrary to sustainability
●● Thematic investment
Answer: Based on needs arising from environmental or social challenges
(e.g. access to low-carbon energy, access to and efficient use of water)
AND VERIFIED ANSWERS SUCCESS KIT
●● Environmental factors
Answer: Pertain to the natural world
●● Social factors
Answer: Affect the lives of humans
●● Governance factors
Answer: Involve issues tied to countries and/or jurisdictions or are
common practice in an industry, as well as the interests of broader
stakeholder groups
●● Environmental examples
Answer: Climate change, resource depletion, waste, pollution,
deforestation
●● Social examples
Answer: Human rights, modern slavery, health and safety, working
conditions, employee relations
●● Governance examples
, Answer: Bribery and corruption, executive pay, board diversity and
structure, trade association, lobbying, donations, tax strategy
●● Responsible investment
Answer: Strategy and practice to incorporate ESG factors into
investment decisions and active ownership, umbrella term
●● Socially responsible investment (SRI)
Answer: Apply social and environmental criteria in evaluating
companies
●● Best-in-class investment (positive screening)
Answer: Select only the companies that overcome a defined ranking
hurdle, established using ESG criteria within each sector or industry
●● Sustainable investment
Answer: Selection of assets that contribute in some way to a sustainable
economy, minimizing natural and social resource depletion. Can also
screen out activities contrary to sustainability
●● Thematic investment
Answer: Based on needs arising from environmental or social challenges
(e.g. access to low-carbon energy, access to and efficient use of water)
