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Sustainable Finance Practice tests
Some academic works state that corporate philanthropy are positively related with corporate
profits only in industrial sectors with low advertising intensity and low competition.
- False.
Investors in financial markets may include corporate CSR commitment as an additional way
of measuring risk. Actually, firms may incur substantial monetary losses in face of troubling
CSR outcomes such as environmental accidents, product safety issues and employee working
conditions. As a result, investors tend to require a higher return for companies with higher
CSR-related risks.
- True
ESG integration" strategy involves including explicitly ESG risks and opportunities
into traditional financial analysis and investment decisions. More precisely, it uses ESG
information to adjust the forward-looking financial projections based on classical financial
analysis.
-True
According to stakeholder theory, managers of firms are only accountable to shareholders
among all the stakeholders of corporations.
False
In 2020, Earth Overshoot Day is reached three weeks earlier than 2019 due to coronavirus that
induced lockdowns around the world.
- False
In consumer-oriented industries, a company’s commitment to CSR enhances customer
loyalty and brand perception.
- True
Relative to young people (such as millenials), older people (such as baby-boomers) care more
about whether a company is engaged in CSR activities when they decide to invest in the
company or not.
- False
In 2007, a first issuance of "Green bond" was made through its 5-year €600 million "Climate
Awareness Bond (CAB)". Since then, more than EUR 18 billions of CAB have been issued,
and the proceeds have helped finance 160 renewable energy and energy efficiency projects
all over the world. Which bank issued this first green bond?
The European Investment Bank (EIB).
Today, in the US and Europe, large corporations often issue non-financial CSR reports in
addition to their financial statements.
- True
, 2
Engagement and voting strategy in SRI can be a stand-alone strategy or applied alongside
other approaches such as screening or thematic investment. Many screened and themed SRI
funds include such a strategy as part of their ongoing activity.
- True
Engagement and voting strategy focuses on shareholders' involvement in the business of a
company as a force of progress regarding ESG factors. Instead of making a jugement on firms'
ESG performance, it seeks to accompany them in their process of improvement so as to make
them sustainable.
- True
CSR activities can be generally categorized into social-oriented and environmental-oriented.
- True
All studies show that SRI funds outperform non-SRI funds in terms of financial returns.
- False
In a CSR-contingent incentive pay plan, the variable pay of an executive or an employee will
depend on the outcomes of some ESG criteria specified in the plan.
- True
ESG rating involves rating a company according to ESG criteria. Investors increasingly rely
on ESG ratings agencies to assess, measure and compare companies' ESG performance. Each
rating agency uses its own set of metrics to measure the level of ESG compliance and there
is, at present, no industry-wide set of common standards.
- True
Academic works show that firms adopting strategic CSR policies produce a significant
financial over-performance relative to their pairs which do not adopt CSR policies.
- True
In France, SRI market is largely dominated by individual investors (or savers) with 75%
market share.
- False
Which of the following statements on Shareholder Theory are true? (2 good answers)
Milton Friedman was it most representative defenser.
Sustainable Finance Practice tests
Some academic works state that corporate philanthropy are positively related with corporate
profits only in industrial sectors with low advertising intensity and low competition.
- False.
Investors in financial markets may include corporate CSR commitment as an additional way
of measuring risk. Actually, firms may incur substantial monetary losses in face of troubling
CSR outcomes such as environmental accidents, product safety issues and employee working
conditions. As a result, investors tend to require a higher return for companies with higher
CSR-related risks.
- True
ESG integration" strategy involves including explicitly ESG risks and opportunities
into traditional financial analysis and investment decisions. More precisely, it uses ESG
information to adjust the forward-looking financial projections based on classical financial
analysis.
-True
According to stakeholder theory, managers of firms are only accountable to shareholders
among all the stakeholders of corporations.
False
In 2020, Earth Overshoot Day is reached three weeks earlier than 2019 due to coronavirus that
induced lockdowns around the world.
- False
In consumer-oriented industries, a company’s commitment to CSR enhances customer
loyalty and brand perception.
- True
Relative to young people (such as millenials), older people (such as baby-boomers) care more
about whether a company is engaged in CSR activities when they decide to invest in the
company or not.
- False
In 2007, a first issuance of "Green bond" was made through its 5-year €600 million "Climate
Awareness Bond (CAB)". Since then, more than EUR 18 billions of CAB have been issued,
and the proceeds have helped finance 160 renewable energy and energy efficiency projects
all over the world. Which bank issued this first green bond?
The European Investment Bank (EIB).
Today, in the US and Europe, large corporations often issue non-financial CSR reports in
addition to their financial statements.
- True
, 2
Engagement and voting strategy in SRI can be a stand-alone strategy or applied alongside
other approaches such as screening or thematic investment. Many screened and themed SRI
funds include such a strategy as part of their ongoing activity.
- True
Engagement and voting strategy focuses on shareholders' involvement in the business of a
company as a force of progress regarding ESG factors. Instead of making a jugement on firms'
ESG performance, it seeks to accompany them in their process of improvement so as to make
them sustainable.
- True
CSR activities can be generally categorized into social-oriented and environmental-oriented.
- True
All studies show that SRI funds outperform non-SRI funds in terms of financial returns.
- False
In a CSR-contingent incentive pay plan, the variable pay of an executive or an employee will
depend on the outcomes of some ESG criteria specified in the plan.
- True
ESG rating involves rating a company according to ESG criteria. Investors increasingly rely
on ESG ratings agencies to assess, measure and compare companies' ESG performance. Each
rating agency uses its own set of metrics to measure the level of ESG compliance and there
is, at present, no industry-wide set of common standards.
- True
Academic works show that firms adopting strategic CSR policies produce a significant
financial over-performance relative to their pairs which do not adopt CSR policies.
- True
In France, SRI market is largely dominated by individual investors (or savers) with 75%
market share.
- False
Which of the following statements on Shareholder Theory are true? (2 good answers)
Milton Friedman was it most representative defenser.
