Free CFA Institute ESG-Investing Exam Questions

Become CFA Institute Certified with updated ESG-Investing exam questions and correct answers

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Total 667 Questions | Updated On: Mar 25, 2025

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Question 1

Determining which ESG issues are material:

A : involves judgment.

B : excludes impacts on short-term financial performance

C : is a process that is independent of a companys industry and business model.

Answer: A

Question 2

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

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.

Answer: A

Question 3

For private equity investments, an especially important ESG factor is:

A : environmental

B : social

C : governance

Answer: C

Question 4

The rules that can be used to construct ESG exchange-traded funds (ETFs) include:

A : Thematic investing, only

B : Tilting weightings based on ESG scores, only

C : Both thematic investing and tilting weightings based on ESG scores

Answer: C

Question 5

Companies subject to the EU Taxonomy are required to:

A : do no significant harm to any of the environmental objectives.

B : contribute substantially to at least two of the environmental objectives.

C : comply with the highest standards of social and governance safeguards.

Answer: A

Page: 1 / 134

Total 667 Questions | Updated On: Mar 25, 2025

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