- Study guides, Class notes & Summaries

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...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

What are the three engagement dynamics outlines by PRI? - Answer Communicative, learning, political What were the results of the Hermes UK focus fund? - Answer Returns to shareholder activism was 65% success rate and active ownership 18% success rate. What did the Walker report do? - Answer Estabilished in 2009 and it ushered in a new era of shareholder engagment. Who issued the first stewardship code in the UK? - Answer Financial Reporting Council (FRC) in 2010 - updated in 2012. Wh...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

the definition of economics - Answer the relationship between ends and scarce means which have alternative uses the definition of environmental sustainability - Answer seeking to meet the needs and aspirations of the present without compromising the ability to meet those of the future according to an update by the Stockholm Resilience Centre from 2017, four of nine planetary boundaries have already been crossed as a result of human activity, what are they? - Answer climate change loss of ...

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21 pages

Written in 2023/2024

Grade A+

Grademasters

Corporate governance can be distilled down to what two factors, known as the two 'A's' of corporate governance? - Answer Accountability and alignment. Talk through the two 'A's' of corporate governance. - Answer Accountability: Who's on the board, who are they responsible/accountable to, and do they produce a set of accounts which are true and fair. Corp governance focuses on board structure, director independence and accurate accounts, as well as who will take responsibility. Alignm...

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12 pages

Written in 2023/2024

Grade A+

Grademasters

In 1987, a Commission put together by the __ issued the __ __, also called __ __ __, which introduced the concept of sustainable development and described how it could be achieved. - Answer UN, Brundtland Report, Our Common Future The concept of responsible investing dates back to the __ century. One of the first ethical mutual funds that moved to screens based on religious traditions was the __ __ that was launched in 1928. The modern institutionalization of ethical exclusions arguably began...

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5 pages

Written in 2023/2024

Grade A+

Grademasters

Definition of ESG - Answer is 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 - Answer Factors 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 - Answer Factors t...

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18 pages

Written in 2023/2024

Grade A+

Grademasters

What is the stern report? - Answer Report produced in 2006 after the biggest market failure ever seen IPCC - Answer 'Direct impact on GDP Growth' report relating to climate produced by the Intergovernmental Panel on Climate Change (IPCC) 2013 Climate change action, trends and implications for business - Answer IPCC considered four potential futures What percentage of global GDP to cities represent? - Answer 80% According to the Stockholm Resilience Centre, how many of the 9 planeta...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

ESG Investing - Answer an approach to managing assets where investors explicitly incorporate ESG factors. ESG investing aims to correctly identify, evaluate and price social, environmental and economic risks and opportunities. Governance Factors - Answer factors that involve issues tied to countries or are common practice in industry, as well as the interest of broader stakeholder groups. Triple Bottom Line - Answer people, planet, profit Corporate Sustainability - Answer an approach ai...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

ESG Investing - Answer an approach to managing assets where investors explicitly incorporate ESG factors. ESG investing aims to correctly identify, evaluate and price social, environmental and economic risks and opportunities. Governance Factors - Answer factors that involve issues tied to countries or are common practice in industry, as well as the interest of broader stakeholder groups. Triple Bottom Line - Answer people, planet, profit Corporate Sustainability - Answer an approach ai...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

What were the two major scandals in 2003 in Europe that caused major reassessment of continent's approach to governance? - Answer Ahold and Parmalat What did the Greenbury report conclude? - Answer Performance related pay in long-term schemes should be released over a minimum of three years Within the EU, how often are public companies required to change their audit company? - Answer Every 20 years What does an AGM address: - Answer Board structure, audit and oversight, executive pay, ...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

Active ownership - Answer Active ownership represents actively exercising one's rights as the shareholder of a company, particularly active engagement with management, and discussion on both financial and non financial ESG factors. Active risk - Answer Active risk is the risk that a portfolio assumes in an effort to compete against and beat its benchmark index. It represents how closely a portfolio tracks to or deviates from its benchmark. Activism - Answer A form of investing where the f...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

Companies who are UN Global Compact and PRI signees will have investment strategies that? - Answer Incorporate ESG into the investment process What is an indirect environmental impact of a paper company cutting trees and transporting them to production plants? - Answer a natural regulator of carbon dioxide is destroyed What is the result of an analyst failing to correctly model risks and opportunities associated with ESG - Answer systematic underestimation of high ESG performers and over e...

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3 pages

Written in 2023/2024

Grade A+

Grademasters

Active Ownership - Answers Active ownership represents actively exercising ones right as the shareholder of a company, particularly active engagement with management, and discussion on both financial and non-financial ESG factors. Active Risk - Answers The risk that a portfolio assumes in an effort to compete against and beat its benchmark index. It represents how closely as portfolio tracks to or deviates from its benchmark. Activism - Answers A form of investing where the fund manager (o...

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8 pages

Written in 2023/2024

Grade A+

Grademasters

Chapter 1 Structure (update) - Answer What is ESG Types of Responsible Investment - SRI - Best-in-class - Sustainable investment - Thematic investment - Green investment - Social investment - impact investment - ethical investment Why integrate ESG Macro Debate: Risk Perspective - Fiduciary Responsibility Perspective - Economics Perspective - Impact and Ethics Perspective - Client Demand Perspective - Regulatory Perspective Financial Materiality - Efficiency and ...

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7 pages

Written in 2023/2024

Grade A+

Grademasters

Official CFA ESG Practice Qs & As Verified 100% Correct!!

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7 pages

Written in 2023/2024

Grade A+

EvaTee

CFA ESG - key concepts (Questions + Answers) Already Passed!!

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32 pages

Written in 2023/2024

Grade A+

EvaTee

CFA ESG Certification - Chapter 1 Q & A Solved 100% Correct

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6 pages

Written in 2023/2024

Grade A+

EvaTee