ESG Midterm || with Certified Answers.
Larry fink letter to CEOS correct answers Larry Fink, the chief executive of BlackRock, the
world's biggest investment fund manager, said pushing climate policies was about profits, not
being "woke". In his annual letter to CEOs , Fink said businesses, cities and countries that do not
plan for a carbon-free future risked being left behind.
Edelman Trust Barometer correct answers The Edelman Trust Barometer is an annual gauge of
the international population's trust in business organizations, governments, and the media.
Stranded assets correct answers Assets that turn out to be worth less than expected as a result of
changes associated with the energy transition.
Carbon Tracker Initiative Definition: correct answers Assets that at some time prior to the end of
their economic life (as assumed at the investment decision point), are no longer able to earn an
economic return (i.e. meet the companies IRR), as a result of changes associated with the
transition to a low-carbon economy (lower than anticipated demand / prices)
Risk Management correct answers •Identify, assess, manage and mitigate non-financial risks that
are material for both the organization's financial performance and its stakeholders.
challenges of esg correct answers •Data - Self reporting
•Lack of standards/compliance/reporting - SEC taking action here
•Lack of transparency and greenwashing
•Higher expense ratios (improving)
•Perception - politics; performance (modern portfolio theory); reg compliance burden on
businesses; "woke capitalism"
•Clean energy transition is expensive
Dodd-Frank Wall Street Reform Act correct answers Dodd-Frank will prevent the excessive risk-
taking that led to the financial crisis. The law also provides common-sense protections for
, American families, creating new consumer watchdog to prevent mortgage companies and pay-
day lenders from exploiting consumers
Consumer Protection Act correct answers stops unfair, deceptive and fraudulent business
practices by collecting reports from consumers and conducting investigations, suing companies
and people that break the law, developing rules to maintain a fair marketplace, and educating
consumers and businesses
Greenwashing correct answers exploiting a consumer by disingenuously marketing products or
services as environmentally friendly, with the goal of gaining public approval and sales
•ESG ETFs have 43% (higher or Lower) fees than standard ETFs correct answers Higher
Woke Capitalism correct answers "Issues perceived as "too political" can be divisive, and
difficult to navigate. Climate change, the COVID-19 pandemic and racially-driven police
violence—these issues all have highly polarized stakeholders and progress is slow as a result."
Enviromental correct answers The E, or environmental, component of ESG information
encompasses how a company is exposed to and manages risks and opportunities related to
climate, natural resource scarcity, pollution, waste, and other environmental factors
Environmental Factors correct answers -Carbon emissions
-Toxic emissions and waste
-Biodiversity & land use
-Raw material sourcing
-Water use
-Product carbon footprint
-Climate change vulnerability
-Packaging material & waste
-Electronic waste
Larry fink letter to CEOS correct answers Larry Fink, the chief executive of BlackRock, the
world's biggest investment fund manager, said pushing climate policies was about profits, not
being "woke". In his annual letter to CEOs , Fink said businesses, cities and countries that do not
plan for a carbon-free future risked being left behind.
Edelman Trust Barometer correct answers The Edelman Trust Barometer is an annual gauge of
the international population's trust in business organizations, governments, and the media.
Stranded assets correct answers Assets that turn out to be worth less than expected as a result of
changes associated with the energy transition.
Carbon Tracker Initiative Definition: correct answers Assets that at some time prior to the end of
their economic life (as assumed at the investment decision point), are no longer able to earn an
economic return (i.e. meet the companies IRR), as a result of changes associated with the
transition to a low-carbon economy (lower than anticipated demand / prices)
Risk Management correct answers •Identify, assess, manage and mitigate non-financial risks that
are material for both the organization's financial performance and its stakeholders.
challenges of esg correct answers •Data - Self reporting
•Lack of standards/compliance/reporting - SEC taking action here
•Lack of transparency and greenwashing
•Higher expense ratios (improving)
•Perception - politics; performance (modern portfolio theory); reg compliance burden on
businesses; "woke capitalism"
•Clean energy transition is expensive
Dodd-Frank Wall Street Reform Act correct answers Dodd-Frank will prevent the excessive risk-
taking that led to the financial crisis. The law also provides common-sense protections for
, American families, creating new consumer watchdog to prevent mortgage companies and pay-
day lenders from exploiting consumers
Consumer Protection Act correct answers stops unfair, deceptive and fraudulent business
practices by collecting reports from consumers and conducting investigations, suing companies
and people that break the law, developing rules to maintain a fair marketplace, and educating
consumers and businesses
Greenwashing correct answers exploiting a consumer by disingenuously marketing products or
services as environmentally friendly, with the goal of gaining public approval and sales
•ESG ETFs have 43% (higher or Lower) fees than standard ETFs correct answers Higher
Woke Capitalism correct answers "Issues perceived as "too political" can be divisive, and
difficult to navigate. Climate change, the COVID-19 pandemic and racially-driven police
violence—these issues all have highly polarized stakeholders and progress is slow as a result."
Enviromental correct answers The E, or environmental, component of ESG information
encompasses how a company is exposed to and manages risks and opportunities related to
climate, natural resource scarcity, pollution, waste, and other environmental factors
Environmental Factors correct answers -Carbon emissions
-Toxic emissions and waste
-Biodiversity & land use
-Raw material sourcing
-Water use
-Product carbon footprint
-Climate change vulnerability
-Packaging material & waste
-Electronic waste
