CFA ESG Exam Questions & Answers Correct 100%

esg investing is... - Answer An approach to managing assets where investors explicitly acknowledge the relevance of environmental, social and governance factors in thier investment decisions with the long-term return of an investment portfolio in mind. Why are esg considerations non financial? - Answer They are difficult to value precisely and difficult to time Typical method of esg investment approach - Answer - integrating ESG into investment decision-making. - Engaging actively. With companies on ESG matters. - Engaging in public policy debates on ESG issues. Which of the following is a form of ESG investment? - Answer - ethical investment - thematic investment - impact investment (X) valuation investment corporate social responsibility (CSR) is... - Answer a broad business concept that describes a company's commitment to conducting its business in an ethical way. Institutional investors typically reflect ESG considerations by incorporating ESG factors into investment decision-making, through corporate and policy engagement. These factors can be included: - Answer a. within their investment mandates; b. within their strategic asset allocation process; c. by applying a filter based on ratings; d. by integrating ESG issue(s) into financial models; or e. by using ESG factors to identify investment opportunities.