KREFT G202 CORE REVIEW SET QUESTIONS AND
ANSWERS SURE A+
✔✔Relevance - ✔✔The information has feedback value based on past actions and
predictive value of future events
✔✔Reliability - ✔✔The info can be independently verified
✔✔Comparability - ✔✔The info can easily be compared across companies and
benchmarks
✔✔Consistency - ✔✔The information retains values over time, so that progress and
trends within the same company can be evaluated
✔✔in order to monetize the risk mitigation potential of ESG disclosures, BlackRocks will
need to - ✔✔push for this standardization
✔✔But Blackrock will have to walk a fine line with - ✔✔direct engagement
✔✔BlackRock must find the right balance of - ✔✔direct company engagement when
stewarding the market towards ESGs standardization
✔✔Rewards - ✔✔-Client loyalty
-index performance (managing social risk will reduce financial risk and produce more
long-term returns for the companies included in BlackRock's indexes
✔✔Risks - ✔✔-Opportunity costs: investing more resources in direct company
engagement will take away from those resources going towards the core competency of
BlackRock
-Anti-trust accusations
, ✔✔BlackRock update - ✔✔-increased ESG reporting has not led to better ESG
management
-the problem is that ESG reports have not become more decision-useful
-even Fink has cooled on pushing ESGs, given the lack of usefulness and recent
political backlash
✔✔In thinking about BlackRock's push for companies to produce decision-useful
ESG disclosures, the statement "the magnitude of the information matches
that of the issue" best defines which standardization characteristic?
A. Materiality.
B. Relevance.
C. Reliability.
D. Comparability. - ✔✔A
✔✔Which of the following statements is not one of the reasons that BlackRock's call
for linking profits to purpose can be good for business?
A. Businesses will better integrate social externalities and better mitigating
social and political risks.
B. Businesses will attract ESG-focused consumer segments enhancing
loyalty and increasing the ability to engage in market power pricing.
C. Businesses will improve employee recruiting & retention and the enhanced
talent acquisition will lead to increased productivity & innovation.
D. Businesses will be able to more often make ESG claims that have more
substance than their actual ESG actions - ✔✔D
✔✔BP - ✔✔
✔✔Greenpeace gave BP - ✔✔the greenwash of the year award
✔✔BP has a guaranteed customer base - ✔✔because they provided several states with
testimony on the construction and updating of their renewable portfolio standards (RPS)
-RPS guarantees demand for BP's alternative energy
✔✔The purchase of SOLAREX was - ✔✔45 mill
✔✔Purchase of ARCO was - ✔✔26.5 billion (588 times more)
✔✔amount spent on rebranding of Helios - ✔✔207 million
✔✔BP found an even to create - ✔✔shared value
-by integrating societal concerns over fossil fuels with their core market strategy
ANSWERS SURE A+
✔✔Relevance - ✔✔The information has feedback value based on past actions and
predictive value of future events
✔✔Reliability - ✔✔The info can be independently verified
✔✔Comparability - ✔✔The info can easily be compared across companies and
benchmarks
✔✔Consistency - ✔✔The information retains values over time, so that progress and
trends within the same company can be evaluated
✔✔in order to monetize the risk mitigation potential of ESG disclosures, BlackRocks will
need to - ✔✔push for this standardization
✔✔But Blackrock will have to walk a fine line with - ✔✔direct engagement
✔✔BlackRock must find the right balance of - ✔✔direct company engagement when
stewarding the market towards ESGs standardization
✔✔Rewards - ✔✔-Client loyalty
-index performance (managing social risk will reduce financial risk and produce more
long-term returns for the companies included in BlackRock's indexes
✔✔Risks - ✔✔-Opportunity costs: investing more resources in direct company
engagement will take away from those resources going towards the core competency of
BlackRock
-Anti-trust accusations
, ✔✔BlackRock update - ✔✔-increased ESG reporting has not led to better ESG
management
-the problem is that ESG reports have not become more decision-useful
-even Fink has cooled on pushing ESGs, given the lack of usefulness and recent
political backlash
✔✔In thinking about BlackRock's push for companies to produce decision-useful
ESG disclosures, the statement "the magnitude of the information matches
that of the issue" best defines which standardization characteristic?
A. Materiality.
B. Relevance.
C. Reliability.
D. Comparability. - ✔✔A
✔✔Which of the following statements is not one of the reasons that BlackRock's call
for linking profits to purpose can be good for business?
A. Businesses will better integrate social externalities and better mitigating
social and political risks.
B. Businesses will attract ESG-focused consumer segments enhancing
loyalty and increasing the ability to engage in market power pricing.
C. Businesses will improve employee recruiting & retention and the enhanced
talent acquisition will lead to increased productivity & innovation.
D. Businesses will be able to more often make ESG claims that have more
substance than their actual ESG actions - ✔✔D
✔✔BP - ✔✔
✔✔Greenpeace gave BP - ✔✔the greenwash of the year award
✔✔BP has a guaranteed customer base - ✔✔because they provided several states with
testimony on the construction and updating of their renewable portfolio standards (RPS)
-RPS guarantees demand for BP's alternative energy
✔✔The purchase of SOLAREX was - ✔✔45 mill
✔✔Purchase of ARCO was - ✔✔26.5 billion (588 times more)
✔✔amount spent on rebranding of Helios - ✔✔207 million
✔✔BP found an even to create - ✔✔shared value
-by integrating societal concerns over fossil fuels with their core market strategy
