Pass the CFA Institute Sustainable Investing Certificate Sustainable-Investing Questions and answers with CertsForce

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Questions # 1:

A meat-processing company does not sell its pork products in predominantly Muslim countries. Investing in the company on this basis would be considered an example of:

Options:

A.

faith-based investing.


B.

norms-based exclusion.


C.

considering religion as a social factor.


Questions # 2:

Under which perspective did the Freshfields Report argue that integrating ESG considerations was necessary in all jurisdictions?

Options:

A.

Economic


B.

Fiduciary duty


C.

Impact and ethics


Questions # 3:

Which of the following refers to a network where investors engage with the world’s largest corporate emitters of greenhouse emissions?

Options:

A.

Climate Action 100+


B.

Network for Greening the Financial System


C.

Partnership for Carbon Accounting Financials


Questions # 4:

To address conflicts of interest and maintain the independence of audit firms, EU law requires firms to abide by:

Options:

A.

A list of allowable non-audit services only.


B.

A monetary limit on the overall value of non-audit services only.


C.

Both a list of allowable non-audit services and a monetary limit on the overall value of non-audit services.


Questions # 5:

An investor positively screening for bonds that commit to specific improvements in ESG outcomes is most likely to tilt her portfolio towards:

Options:

A.

Transition bonds.


B.

Sustainability bonds.


C.

Sustainability-linked bonds.


Questions # 6:

Which of the following sectors receives the highest investment from the Inflation Reduction Act of 2022 (IRA)?

Options:

A.

Clean energies


B.

Clean transport


C.

Clean electricity


Questions # 7:

A situation in which a company making good strides toward more sustainable practices but is unwilling to reveal as much for fear of retribution or misinterpretation is best described as:

Options:

A.

greenhushing.


B.

scopewashing.


C.

competence greenwashing.


Questions # 8:

A challenge to ESG integration for investment managers is the:

Options:

A.

Narrow range of possible ESG data.


B.

Inherently subjective nature of ESG analysis.


C.

High correlation among third-party ESG ratings.


Questions # 9:

Compared to equities, bonds most likely:

Options:

A.

have an infinite maturity.


B.

have a wider range of issuers.


C.

are inferior in the capital structure.


Questions # 10:

Which of the following represents the majority of the largest asset owners?

Options:

A.

Pension funds.


B.

Insurance companies.


C.

Sovereign wealth funds.


Questions # 11:

If a company does not manage social factors appropriately, an analyst is most likely to:

Options:

A.

Raise the discount rate.


B.

Lower the discount rate.


C.

Apply a specific impact adjustment on existing revenues, costs, and liabilities.


Questions # 12:

For which of the following asset classes are investment managers most likely to use voting to exert influence on a company?

Options:

A.

Real estate


B.

Private debt


C.

Passive/index tracking


Questions # 13:

ESG integration into a company's operations most likely leads to increased:

Options:

A.

Efficiency.


B.

State intervention.


C.

Negative externalities.


Questions # 14:

Externalities for an infrastructure asset are issues:

Options:

A.

Caused by the asset itself that impact the asset's surrounding environment.


B.

Caused by the asset itself that impact the asset's technical ability to operate.


C.

Originating outside the asset that impact the asset's technical ability to operate.


Questions # 15:

The world's first formal corporate governance code emerged in:

Options:

A.

Germany.


B.

The United States.


C.

The United Kingdom.


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