CESGA MODULE 3 EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Which of the following is a correct statement about "impact investment"?
a) Impact investments are those investments that aim to incorporate environmental,
social and governance (ESG) factors into investment decisions, to better manage risk
and generate sustainable, long-term returns
b) Impact investment means the same as ESG investment
c) Impact investment means the same as sustainable investment
d) Impact investment are investments made in companies, organizations, and funds
with the intention to generate measurable social and environmental impact alongside a
financial return - Answer-d)
Which of the following is an entity that has defined a classification of ESG invement
strategies?
a) EFAMA
b) EBA
c) SASB - Answer-a)
Which of the following does NOT correspond to a classification of ESG strategies?
a) GRI
b) Eurosif
c) EFAMA
d) PRI - Answer-a)
Which of the following is not a PRI-equivalent definition?
a) Negative/exclusionary screening
b) Integration of ESG issues
c) Environmental integration
d) Norms-based screening - Answer-c)
Comparison of classifications: largely congruent definitions of approaches. Which
organizations offer a definition of Impact Investing?
A) Eurosif
B) GSIA-equivalent
C) GRI
D) SASB
a) B & C
b) A & C
, c) B & D
d) A & B - Answer-d)
Value-based exclusions refer to:
a) The exclusion of companies that violate internationally (or nationally) recognized
norms or conventions
b) The exclusion of company stocks that earn negative abnormal returns
c) The exclusion of companies that perform worse than the industry/sector benchmark
(norm)
d) The exclusion of companies deriving a significant part of their revenue or profit from
activities seen as negative for society - Answer-d)
What type of exclusion do the following criteria refer to: Arms, Gambling, Pornography,
Tobacco & Alcohol?
a) Social criteria
b) Value-based criteria
c) Norm-based criteria
d) Thematic criteria - Answer-b)
Which of the following sectors is more often used as an exclusion criteria in Europe?
a) Garment producers
b) Renewable energy
c) Arms
d) Car manufacturers - Answer-c)
Which of the following is NOT a commonly used norm in norm-based exclusions?
a) United Nations Global Compact Principles
b) Global Reporting Initiative (GRI)
c) Rio Declaration on Environment and Development
d) Universal Declaration of Human Rights - Answer-b)
Which of the following is a commonly used norm in norm-based exclusions?
a) EU Green Deal
b) Code of good governance for listed companies
c) Rio Declaration on Environment and Development
d) TCFD - Answer-c)
Which of the following is a commonly used norm in norm-based exclusions?
a) Global Reporting Initiative (GRI)
b) Science Based Targets initiative (SBTi)
c) United Nations Convention against Corruption
d) TCFD - Answer-c)
Which of the following is NOT true about best-in-class screening?
a) It consists of a selection of companies with the best environmental, social and
governance practices
QUESTIONS WITH COMPLETE
SOLUTIONS
Which of the following is a correct statement about "impact investment"?
a) Impact investments are those investments that aim to incorporate environmental,
social and governance (ESG) factors into investment decisions, to better manage risk
and generate sustainable, long-term returns
b) Impact investment means the same as ESG investment
c) Impact investment means the same as sustainable investment
d) Impact investment are investments made in companies, organizations, and funds
with the intention to generate measurable social and environmental impact alongside a
financial return - Answer-d)
Which of the following is an entity that has defined a classification of ESG invement
strategies?
a) EFAMA
b) EBA
c) SASB - Answer-a)
Which of the following does NOT correspond to a classification of ESG strategies?
a) GRI
b) Eurosif
c) EFAMA
d) PRI - Answer-a)
Which of the following is not a PRI-equivalent definition?
a) Negative/exclusionary screening
b) Integration of ESG issues
c) Environmental integration
d) Norms-based screening - Answer-c)
Comparison of classifications: largely congruent definitions of approaches. Which
organizations offer a definition of Impact Investing?
A) Eurosif
B) GSIA-equivalent
C) GRI
D) SASB
a) B & C
b) A & C
, c) B & D
d) A & B - Answer-d)
Value-based exclusions refer to:
a) The exclusion of companies that violate internationally (or nationally) recognized
norms or conventions
b) The exclusion of company stocks that earn negative abnormal returns
c) The exclusion of companies that perform worse than the industry/sector benchmark
(norm)
d) The exclusion of companies deriving a significant part of their revenue or profit from
activities seen as negative for society - Answer-d)
What type of exclusion do the following criteria refer to: Arms, Gambling, Pornography,
Tobacco & Alcohol?
a) Social criteria
b) Value-based criteria
c) Norm-based criteria
d) Thematic criteria - Answer-b)
Which of the following sectors is more often used as an exclusion criteria in Europe?
a) Garment producers
b) Renewable energy
c) Arms
d) Car manufacturers - Answer-c)
Which of the following is NOT a commonly used norm in norm-based exclusions?
a) United Nations Global Compact Principles
b) Global Reporting Initiative (GRI)
c) Rio Declaration on Environment and Development
d) Universal Declaration of Human Rights - Answer-b)
Which of the following is a commonly used norm in norm-based exclusions?
a) EU Green Deal
b) Code of good governance for listed companies
c) Rio Declaration on Environment and Development
d) TCFD - Answer-c)
Which of the following is a commonly used norm in norm-based exclusions?
a) Global Reporting Initiative (GRI)
b) Science Based Targets initiative (SBTi)
c) United Nations Convention against Corruption
d) TCFD - Answer-c)
Which of the following is NOT true about best-in-class screening?
a) It consists of a selection of companies with the best environmental, social and
governance practices
