The correlation between ESG ratings of issuers by different ESG rating providers is:
Which of the following was established by the United Nations Environment Programme Finance Initiative (UNEP FI)?
Which of the following encourages institutional investors to work together on human rights and social issues?
The role of auditors is to assess the financial reports prepared by management and to provide assurance that:
Which of the following ESG investment approaches is most likely applicable when investing in sovereign debt?
Which of the following governance initiatives was focused on increased oversight of banks?
Which of the following is most likely the primary driver of ESG investment for a life insurer?
Which sector is likely to experience the highest share price increase through reduced carbon emissions?
During the decommissioning phase of a company’s mining project, the government tightens regulations on land restoration. Which of the following is most likely impacted?
According to the Sustainability Accounting Standards Board (SASB), GHG emission is material for more than 50% of the industries in which sector?
Which of the following ESG investment approaches would most appropriately be used to construct a balanced and diversified portfolio?
Mass migration from developing countries to developed countries are most likely caused by:
In which of the following circumstances is Free, Prior, and Informed Consent (FPIC) most applicable?
Which of the following statements about the Green Claims Directive (GCD) is most accurate? The GCD:
Using the “shades of green" methodology developed by the Center for International Climate Research (CICERO), a project that does not explicitly contribute to the transition to a low carbon and climate resilient future is given the shading of:
All else equal, which of the following companies would most likely have a lower price-to-earnings (P/E) ratio than industry average?
Which of the following organizations is not a provider of both ESG-related and non-ESG-related products and services?
Which of the following would credit rating agencies (CRAs) most likely focus on in order to test how well an issuer’s management uses the assets under its control to generate sales and profit?
With reference to data security and customer privacy issues, a technology company in the research and development stage with no commercially marketed products is most likely to have:
A discount retailer facing a consumer boycott due to its poor working conditions will most likely face:
Which of the following scenarios best illustrates the concept of a ‘just’ transition?
The Integrated Biodiversity Assessment Tool (IBAT) is best described as an interactive mapping tool allowing decision makers to:
Which of the following is an example of a just’ transition with regards to climate change?
An analyst reads the following statements about wastewater treatment plants:
Statement I: Wastewater treatment plants are capital intensive.
Statement II: Wastewater treatment plants are difficult to maintain.
Which of the following is correct?
The financial crisis of 2008 led to which of the following legislative changes?
Measuring a portfolio's carbon intensity using the European Union's Sustainable Finance Disclosure Regulation (SFDR) accounts for:
Which of the following would most likely see its estimate of intrinsic value increased by analysts?
A materiality assessment to identify ESG issues impacting a company's financial performance is most likely measured in terms of:
Which of the following is one of the five main drivers of nature change described by the Taskforce on Nature-related Financial Disclosures (TNFD)?
According to the framework of the Task Force on Climate-Related Financial Disclosures (TCFD): the formula for carbon intensity at the portfolio level weighs emissions based upon an issuer's:
A challenge to ESG integration at the asset allocation level when using mean-variance optimization is that it:
Analyzing a portfolio's social impact exposure is best achieved by first understanding material social topics at:
Which of the following transition risks is most likely associated with increased environmental standards?
Which of the following types of ESG bonds provide financing to issuers who commit to future improvements in sustainability outcomes?
Which of the following UK Stewardship Code principles is not addressed in the European Fund and Asset Management Association (EFAMA) Code? The principle that institutional investors should:
When searching for an asset manager with an ESG approach, in the request for proposal (RFP) an institutional asset owner would most appropriately ask:
Corporate disclosures in line with the recommendations of the Corporate Sustainability Reporting Directive (CSRD) are a regulatory requirement for companies in:
Which of the three ESG factors is most often taken into consideration by traditional investment analysts?
When integrating ESG analysis into the investment process, deriving correlations on how ESG factors might impact financial performance over time is an example of a:
Corporate engagement and shareholder action is the predominant investment strategy in:
A difficulty of integrating ESG into sovereign debt analysis is most likely the:
With respect to the current state of ESG disclosure globally, issuer reporting frameworks for ESG information are:
One of the mam principles of stewardship codes calls for institutional investors to:
Which of the following has the long-term goal to keep the increase in global average temperature to well below 2°C (3.6°F) above pre-industnal levels?
To produce a rating, an ESG rating provider will most likely apply a weighting system to
According to the Stockholm Resilience Centre, which of the following planetary boundaries have already been crossed as a result of human activity?
Suppose the average price-to-earnings (P/E) ratio for the financial industry is 10x. A financial institution with high ESG risk compared to its industry, is most likely assigned a fair value P/E ratio:
When using a threshold assessment to integrate governance factors into the investment decision-making process, fund managers most likely focus on the:
To fall in scope of mandatory compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD), companies would need to meet which of the following conditions?
Condition 1EUR40 million in net turnover
Condition 2EUR20 million in assets
Condition 3250 or more employees
An ESG scorecard for sovereign debt issuers has the following information:
Country 1No carbon policy and high corruption risk
Country 2High-level carbon policy and low corruption risk
Country 3Detailed carbon policy and low corruption risk
Based only on this information, the country with the lowest ESG risk is:
Which of the following investor types most likely has the shortest investment time horizon?
With respect to exclusion policies, which of the following falls outside of the traditional spectrum of responsible investment?
When incorporating ESG factors into valuation inputs, which of the following would most likely require the lowest discount rate?
A bond issued to fund projects that provide a clear benefit to the environment best describes a:
Which of the following is an example of a bottom-up ESG engagement approach? An asset manager:
With respect to ESG integration, adjusting financial model inputs based on an evaluation of a company’s ESG risk factors is an example of a:
Which of the following statements is least accurate? Compared to social and environmental factors, governance has a:
Which of the following would most likely be the initial step when drafting a client’s investment mandate?
Which of the following parties is most likely to help investors identify the extent and depth to which investment funds integrate ESG?
According to the UK Investor Forum which of the following is a key success factor for effective engagement?
Is the following statement accurate? "Engagement is meant to preserve and enhance long-term value on behalf of the asset owner by focusing on factors such as capital structure and lobbying."
Which element of EU Taxonomy for Sustainable Activities screening is most closely associated with social factors?