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

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Viewing questions 76-90 out of questions
Questions # 76:

An advantage of the carbon footprinting approach to environmental risk analysis is that it allows for:

Options:

A.

comparisons to global benchmarks.


B.

measuring and valuing nature's role in decision-making.


C.

measuring potential investment risks related to the physical impacts of climate change.


Expert Solution
Questions # 77:

An analyst derives correlations to determine how ESG factors might impact financial performance over time and then weights those factors appropriately within the portfolio. This approach is best described as:

Options:

A.

Thematic


B.

Systematic


C.

Algorithmic


Expert Solution
Questions # 78:

In the revised 2020 version of the UK Stewardship Code, a significant change is that signatories are now required to:

Options:

A.

establish clear guidelines for escalating their activities.


B.

publicly disclose how stewardship is integrated into their investment process.


C.

report annually how stewardship activities have delivered practical results for clients.


Expert Solution
Questions # 79:

Which of the following tests defines the internal theoretical cost on carbon emissions to guide a company's decision-making process in energy-intensive sectors?

Options:

A.

Carbon taxation


B.

Shadow carbon pricing


C.

Emission trading system


Expert Solution
Questions # 80:

The Task Force on Climate-related Financial Disclosures (TCFD) recommends measuring carbon exposure on a:

Options:

A.

per asset basis.


B.

per company basis.


C.

portfolio-weighted basis.


Expert Solution
Questions # 81:

Tools that evaluate companies, countries, and bonds based on their exposure or involvement-specific factors, sectors, products, or services are referred to as:

Options:

A.

ESG data.


B.

ESG ratings.


C.

ESG screening.


Expert Solution
Questions # 82:

A French company is most likely considered to have weak corporate governance practices if its board:

Options:

A.

has 40% female representation.


B.

is chaired by the company's CEO.


C.

has only three committees: nominations, audit, and risk.


Expert Solution
Questions # 83:

A common characteristic of the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks is that they both:

Options:

A.

permit only green investments.


B.

permit fossil fuel investments as part of a transition process.


C.

require a reduction in carbon emissions intensity in the starting year.


Expert Solution
Questions # 84:

A company's external auditor formally reports to the:

Options:

A.

audit committee.


B.

chair of the board of directors.


C.

shareholders at the annual general meeting.


Expert Solution
Questions # 85:

The World Bank's World Governance Indicators dataset includes rankings on:

Options:

A.

rule of law.


B.

credit rating.


C.

the government debt to GDP ratio.


Expert Solution
Questions # 86:

A company’s exposure to social trends and factors:

Options:

A.

Tends to be similar across companies in the same sector


B.

Tends to be similar across companies in the same country


C.

Depends on its culture, systems, operations, and governance


Expert Solution
Questions # 87:

Excluding tobacco from the investment universe is an example of which of the following ESG screening approaches?

Options:

A.

Universal exclusion


B.

Idiosyncratic exclusion


C.

Conduct-related exclusion


Expert Solution
Questions # 88:

Which of the following index providers offers fixed-income ESG indexes?

Options:

A.

FTSE4Good


B.

Sustainalytics


C.

S&P (DJSI) ESG


Expert Solution
Questions # 89:

Which of the following countries have a joint audit requirement that all public interest entities must engage at least two independent accounting firms to perform an annual audit?

Options:

A.

France


B.

Germany


C.

United Kingdom


Expert Solution
Questions # 90:

The consulting firm McKinsey & Company includes transparency as part of which of the following dimensions of an asset manager's investment approach?

Options:

A.

Public reporting


B.

Tools and processes


C.

Resources and organization


Expert Solution
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