CFA Institute Sustainable Investing Certificate (CFA-SIC) Exam Sustainable-Investing Question # 214 Topic 22 Discussion

CFA Institute Sustainable Investing Certificate (CFA-SIC) Exam Sustainable-Investing Question # 214 Topic 22 Discussion

Sustainable-Investing Exam Topic 22 Question 214 Discussion:
Question #: 214
Topic #: 22

Which of the following statements about potential bias in ESG credit ratings is most accurate?


A.

Higher unionization levels in Europe explain sector bias


B.

Industry bias stems from rating providers overcomplicating industry weighting and company alignment


C.

Larger companies may obtain higher ratings given the ability to dedicate more resources to nonfinancial disclosures


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