CFA ESG - Chapter 1(100% Correct)
Definition of ESG - ANSWERSis an approach to managing assets where investors
explicitly incorporate environmental,
social and governance (ESG) factors in their investment decisions with the long-term
return of an investment
portfolio in mind.
ENVIRONMENTAL FACTORS - ANSWERSFactors pertaining to the natural
world. These include the use of,
and interaction with, renewable
and non-renewable resources
(e.g. water, minerals, ecosystems
and biodiversity).
SOCIAL FACTORS - ANSWERSFactors that affect the lives
of humans. The category
includes the management of
human capital, non-human
animals, local communities
and clients.
GOVERNANCE FACTORS - ANSWERSFactors that involve issues tied
to countries and/or jurisdictions,
or are common practice in an
industry; as well as the interest
of broader stakeholder groups.
Stakeholders - ANSWERSare members of groups without whose support an
organisation would cease to
exist,1 as well as communities impacted by companies and regulators.
corporate sustainability - ANSWERSan approach aiming to create long-term
stakeholder value through the implementation of a
business strategy that focuses on the ethical, social, environmental, cultural and
economic dimensions of doing
business
philanthropy is comprised of - ANSWERStraditional and venture
Traditional Philanthropy focus - ANSWERSAddress
societal
challenges
, through the
provision of
grants
venture philanthropy focus - ANSWERSAddress
societal
challenges
with venture
investment
approaches
social impact investing is comprised of - ANSWERSsocial investing and impact
investment
social investing focus - ANSWERSInvestment
with a focus on
social and/or
environmental
outcome and
some expected
financial return
impact investment focus - ANSWERSInvestment with
an intent to have
a measurable
environmental
and/or social
return
ESG investing focus - ANSWERSEnhance
long-term
value by using
ESG factors
to mitigate
risks and
identify growth
opportunities
fully commercial investment focus - ANSWERSLimited or no
regard for ESG
practices
traditional philanthropy return expectation - ANSWERSsocial return only
venture philanthropy return expectation - ANSWERSsocial return focused
Definition of ESG - ANSWERSis an approach to managing assets where investors
explicitly incorporate environmental,
social and governance (ESG) factors in their investment decisions with the long-term
return of an investment
portfolio in mind.
ENVIRONMENTAL FACTORS - ANSWERSFactors pertaining to the natural
world. These include the use of,
and interaction with, renewable
and non-renewable resources
(e.g. water, minerals, ecosystems
and biodiversity).
SOCIAL FACTORS - ANSWERSFactors that affect the lives
of humans. The category
includes the management of
human capital, non-human
animals, local communities
and clients.
GOVERNANCE FACTORS - ANSWERSFactors that involve issues tied
to countries and/or jurisdictions,
or are common practice in an
industry; as well as the interest
of broader stakeholder groups.
Stakeholders - ANSWERSare members of groups without whose support an
organisation would cease to
exist,1 as well as communities impacted by companies and regulators.
corporate sustainability - ANSWERSan approach aiming to create long-term
stakeholder value through the implementation of a
business strategy that focuses on the ethical, social, environmental, cultural and
economic dimensions of doing
business
philanthropy is comprised of - ANSWERStraditional and venture
Traditional Philanthropy focus - ANSWERSAddress
societal
challenges
, through the
provision of
grants
venture philanthropy focus - ANSWERSAddress
societal
challenges
with venture
investment
approaches
social impact investing is comprised of - ANSWERSsocial investing and impact
investment
social investing focus - ANSWERSInvestment
with a focus on
social and/or
environmental
outcome and
some expected
financial return
impact investment focus - ANSWERSInvestment with
an intent to have
a measurable
environmental
and/or social
return
ESG investing focus - ANSWERSEnhance
long-term
value by using
ESG factors
to mitigate
risks and
identify growth
opportunities
fully commercial investment focus - ANSWERSLimited or no
regard for ESG
practices
traditional philanthropy return expectation - ANSWERSsocial return only
venture philanthropy return expectation - ANSWERSsocial return focused
