perception of ESG and performance has - Correct Answersincreased
Does PRI monitor the number of signatories and the number of asset owners? - Correct AnswersYes
Carbon Disclosure Project - Correct Answerscompanies responding to CDP represent more than 50% of
global market cap
How do rating agencies obtain their information? - Correct Answerspublic data, interviews, and
controversies (NGOs)
In light of global risks and challenges, corporations need to consider and incorporate - Correct
Answersdouble materiality
Sustainalytics ESG Risk Ratings Methodology - Correct Answers1. identify company's exposure to
material ESG issues
2. examine shares of manageable and unmanageable risks
3. company's performance is evaluated based on policies, programs, practices, and quantitative
measures
4. ESG risk rating is calculated by adding the amount of unmanaged risk for each ESG issue
Which is one of the objectives of the alliances in terms of use of ESG data?
-joint work towards taxonomy of the HLEG in order to have a common language of sustainable finance
-joint work towards green bond standard of the HLEG in order to have a common language of
sustainable finance
-joint work towards delegated acts of the HLEG in order to have a common language of sustainable
finance - Correct Answersjoint work towards taxonomy of the HLEG in order to have a common
language of sustainable finance
, Drivers for ESG Integration - Correct Answersinvestor demand, regulatory framework, global challenges,
public perception, investor initiatives, data availability, risk & reputation management, changing
fiduciary duties
Motives of Investor Initiatives - Correct Answersactive commitment, raising public awareness,
competitive advantage, gathering of information and knowledge, prevent regulation
UN Principles for Responsible Investment (UNPRI) - Correct Answersa voluntary initiative with a clear
focus on the promotion of sustainable and responsible investment; requires commitment to six
principles and required mandatory annual reporting by signatories
Six Principles of UNPRI - Correct Answers1. Incorporate ESG issues into investment analysis and
decision-making processes
2. Incorporate ESG issues into ownership policies and practices
3. Seek appropriate disclosure on ESG issues by the entities in which we invest
4. Promote acceptance and implementation of Principles within investment industry
5. Enhance effectiveness in implementing Principles
6. Report on activities and progress towards implementing Principles
Company Barriers to ESG Integration - Correct Answersmeasuring ESG performance, concerns about
underperformance, lack of ESG data, costs associated with ESG integration, regulations, balancing
investment needs for growth with ESG goals
Investor Barriers to ESG Integration - Correct Answerslack of comparability across firms, lack of
standards in reporting, costs of gathering and analyzing ESG data, reliability and materiality of data
EU Action Plan for Sustainable Growth - Correct Answersan action plan issued in March 2018 for
financing sustainable growth to connect finance with sustainability, includes ten actions divided into
three categories
Three Categories of EU Action Plan - Correct Answers-reorienting capital flows towards a more
sustainable economy
-mainstreaming sustainability into risk management