SASB LEVEL 1 EXAM QUESTIONS WITH
COMPLLETE SOLUTIONS
How are SASB standards used? - Answer- 1. To disclose investor-tailored sustainability
information
2. bringing companies and investors together around the factors that have, or are
anticipated to have, a material impact on business.
1. disclosure
2. bring companies together on material impacts on business
cue: sasb standards are used like clothes... dis clothes... disclosure. clothes are the
material that is brought together on a business
SASB standards facilitate - Answer- 1. the collection
2. management
3. reporting
cue: sasb standards facilitate in a facility you have a collection of entities that need to be
managed and reported on.
sustainability information that is
1. relevant
2. reliable
3. comparable
cue: information needs to 2 welcome / 2 relcom
in doing so, SASB empowers both corporate and investor
1. decision-making
2.risk management
3. strategy-setting
cue: SASB empowers. to make a decision you must weigh the risks and build a strategy
SASB users - Answer- 1. practitioners in sustainability
2. finance
3. operations
4. investing
cue: who are sasb users? FIOP
must understand how to
1. identify
2. quantify
3. communicate
cue: Users must fyfycom
sustainability factors that are
,1. material to a company’s financial condition
2. operating performance
cue: a sustainability factor is like training for a marathon to be material you must
condition yourself for the performance: financial condition/operating performance
fcop
Who benefits from the SASB standards? - Answer- 1. Organizations
2. The capital markets
3. Society at large
cue: they benefit, fit into each other: smallest to largest: organcapiso sounds like an
Italian Dish
cue: who benefits from sasb grammar? organizations are capitalized in society
What is demand for ESG driven by? - Answer- 1. Companies and investors are driven
to acquire the COMPETITIVE ADVANTAGE ESG has been proven to fulfill through
scholarly articles.
... (in other words) Demand for ESG is driven by companies and investors alike, as the
advantages of ESG-integrated investment and performance management are realized
and proved through scholarly research.
2. A number of ORGANIZATIONS in the broader disclosure ecosystem collectively
elevate the public dialogue surrounding THE IMPORTANCE OF ESG INFORMATION.
--eg POLICY BASED INITIATIVES stimulate sustainability disclosure by ENACTING
NATIONAL RECOMMENDATIONS OR REQUIREMENTS for publicly listed companies
in order to foster more STABLE, SUSTAINABLE ECONOMIES. Eg EU Action Plan for
financial disclosure with 10 key initiatives distributed among ****3 core categories:
reorienting capital flows towards a more sustainable economy... Mainstreaming
sustainability into risk management, and fostering transparency and long-termism.
---other eg when the Paris Climate Accord is adopted into local policy.
Also eg NON-POLICY BASED ENTITIES such as
--The Sustainable Stock Exchanges (SSE) Initiative offers "a global platform for
exploring how exchanges" , in collaboration with investors, companies, regulators, and
policymakers and relevant international organizations, can enhance performance on
ESG issues and encourage sustainable investment, including the financing of the
UNSDGs.
Wrap up
ESG is driven by competitive advantage, Policy based initiatives and non-policy efforts.
examples of policy-based initiatives aim to foster stable sustainable economies through
national recommendations or requirements such as EU Action Plan and the Paris
Climate Accord. Non-policy based entity examples are Sustainable Stock Exchange
(SSE) which support ESG and the SDGs.
cue: It is the policy and non policy of drive
, EU Action Plan - Answer- ****3 core categories: reorient capital flows towards a more
sustainable economy... mainstreaming sustainability into risk management, and
fostering transparency and long-termism.
sustainability focus on
1. reorient capital flows
2. risk management
3. transparency and long-termism
cue: In the EU action plan transparency is a long risk reorienting capital flows.
who demands quality sustainability information? - Answer- --investors
for the reasons
1. outperform market indexes
2. reduce risk and volatility (diminishing returns)
3. improve environmental and social investment outcomes, with financial returns as an
equivalent or secondary consideration
why do investors demand quality sustainability information?
1. outperform, reduce risk, improve ESG with returns as equivalent or secondary.
cue: the demanding little investor outperformed in the reduced risk market with
improved ESG. and the winnings were either equivalent or secondary.
more sustainable companies are able to adopt environmental and socially responsible
practices without sacrificing shareholder wealth creation - Answer- true
How has ESG performance been linked to improved profitability? - Answer- Companies
focused on sustainability achieve
1. reduced costs
2. improved worker productivity
3. mitigated risk potential
4. created revenue-generating opportunities
cue: cost worker risk opportunities
coworkerriskop. coworkers rise up.
Companies with higher ESG rating or sustainability - Answer- have LOWER price to
earnings per share (EPS) price volatility
so ESG and EPS are indirectly related
proved by 5 years of historical data from Bank of America Global Research
How are equity and fixed-income affected by ESG? - Answer- 1. support risk analysis
2. identify signals of future volatility and value decline
3. protect portfolio value
COMPLLETE SOLUTIONS
How are SASB standards used? - Answer- 1. To disclose investor-tailored sustainability
information
2. bringing companies and investors together around the factors that have, or are
anticipated to have, a material impact on business.
1. disclosure
2. bring companies together on material impacts on business
cue: sasb standards are used like clothes... dis clothes... disclosure. clothes are the
material that is brought together on a business
SASB standards facilitate - Answer- 1. the collection
2. management
3. reporting
cue: sasb standards facilitate in a facility you have a collection of entities that need to be
managed and reported on.
sustainability information that is
1. relevant
2. reliable
3. comparable
cue: information needs to 2 welcome / 2 relcom
in doing so, SASB empowers both corporate and investor
1. decision-making
2.risk management
3. strategy-setting
cue: SASB empowers. to make a decision you must weigh the risks and build a strategy
SASB users - Answer- 1. practitioners in sustainability
2. finance
3. operations
4. investing
cue: who are sasb users? FIOP
must understand how to
1. identify
2. quantify
3. communicate
cue: Users must fyfycom
sustainability factors that are
,1. material to a company’s financial condition
2. operating performance
cue: a sustainability factor is like training for a marathon to be material you must
condition yourself for the performance: financial condition/operating performance
fcop
Who benefits from the SASB standards? - Answer- 1. Organizations
2. The capital markets
3. Society at large
cue: they benefit, fit into each other: smallest to largest: organcapiso sounds like an
Italian Dish
cue: who benefits from sasb grammar? organizations are capitalized in society
What is demand for ESG driven by? - Answer- 1. Companies and investors are driven
to acquire the COMPETITIVE ADVANTAGE ESG has been proven to fulfill through
scholarly articles.
... (in other words) Demand for ESG is driven by companies and investors alike, as the
advantages of ESG-integrated investment and performance management are realized
and proved through scholarly research.
2. A number of ORGANIZATIONS in the broader disclosure ecosystem collectively
elevate the public dialogue surrounding THE IMPORTANCE OF ESG INFORMATION.
--eg POLICY BASED INITIATIVES stimulate sustainability disclosure by ENACTING
NATIONAL RECOMMENDATIONS OR REQUIREMENTS for publicly listed companies
in order to foster more STABLE, SUSTAINABLE ECONOMIES. Eg EU Action Plan for
financial disclosure with 10 key initiatives distributed among ****3 core categories:
reorienting capital flows towards a more sustainable economy... Mainstreaming
sustainability into risk management, and fostering transparency and long-termism.
---other eg when the Paris Climate Accord is adopted into local policy.
Also eg NON-POLICY BASED ENTITIES such as
--The Sustainable Stock Exchanges (SSE) Initiative offers "a global platform for
exploring how exchanges" , in collaboration with investors, companies, regulators, and
policymakers and relevant international organizations, can enhance performance on
ESG issues and encourage sustainable investment, including the financing of the
UNSDGs.
Wrap up
ESG is driven by competitive advantage, Policy based initiatives and non-policy efforts.
examples of policy-based initiatives aim to foster stable sustainable economies through
national recommendations or requirements such as EU Action Plan and the Paris
Climate Accord. Non-policy based entity examples are Sustainable Stock Exchange
(SSE) which support ESG and the SDGs.
cue: It is the policy and non policy of drive
, EU Action Plan - Answer- ****3 core categories: reorient capital flows towards a more
sustainable economy... mainstreaming sustainability into risk management, and
fostering transparency and long-termism.
sustainability focus on
1. reorient capital flows
2. risk management
3. transparency and long-termism
cue: In the EU action plan transparency is a long risk reorienting capital flows.
who demands quality sustainability information? - Answer- --investors
for the reasons
1. outperform market indexes
2. reduce risk and volatility (diminishing returns)
3. improve environmental and social investment outcomes, with financial returns as an
equivalent or secondary consideration
why do investors demand quality sustainability information?
1. outperform, reduce risk, improve ESG with returns as equivalent or secondary.
cue: the demanding little investor outperformed in the reduced risk market with
improved ESG. and the winnings were either equivalent or secondary.
more sustainable companies are able to adopt environmental and socially responsible
practices without sacrificing shareholder wealth creation - Answer- true
How has ESG performance been linked to improved profitability? - Answer- Companies
focused on sustainability achieve
1. reduced costs
2. improved worker productivity
3. mitigated risk potential
4. created revenue-generating opportunities
cue: cost worker risk opportunities
coworkerriskop. coworkers rise up.
Companies with higher ESG rating or sustainability - Answer- have LOWER price to
earnings per share (EPS) price volatility
so ESG and EPS are indirectly related
proved by 5 years of historical data from Bank of America Global Research
How are equity and fixed-income affected by ESG? - Answer- 1. support risk analysis
2. identify signals of future volatility and value decline
3. protect portfolio value
