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: Jan 09, 2025

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Question 1

An analyst would most likely increase a companys discount rate if the company:

A : Has strong ESG practices

B : Faces significant environmental litigation

C : Is well-positioned to benefit from ESG opportunities

Answer: B

Question 2

With respect to ESG reporting by investment managers, the 2020 version of the UK Stewardship Code calls for more reporting on the:

A : outcomes from ESG activity

B : policies and activities of signatories.

C : assertions of investment managers on ESG themes.

Answer: A

Question 3

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 4

Which of the following statements regarding corporate governance is most accurate?

A : Board appraisals are most effective when led by an internal facilitator.

B : A board should be independent of the decisions of the previous boards.

C : Gender is the most important type of diversity needed for a board to be successful.

Answer: B

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: Jan 09, 2025

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