Free CFA Institute ESG-Investing Exam Dumps Questions & Answers

With respect to ESG engagement for a company that is a going concern, the interests of equity investors and debt investors are most likely.

• A.opposed.
• B.independent
• C.aligned

Exclusionary screening:

• A.employs a given ESG rating methodology to identify companies with better ESG performance relative to its industry peers.
• B.is the oldest and simplest approach within responsible investment.
• C.reduces portfolio tracking error and active share.

Which of the following describes a key goal of the EU Green Taxonomy?

• A.To classify all businesses based on their ESG scores
• B.To mandate that all public companies invest in climate solutions
• C.To define which economic activities can be considered environmentally sustainable

Which of the following statements about ESG integration in fixed income is most accurate?

• A.ESG factors cannot affect credit risk at geographic level
• B.Equity investors generally focus more on the risk of default than fixed-income investors
• C.Municipal bonds have ESG integration considerations similar to those of sovereign debt

Material ESG risks that could be managed by a company but which are not yet managed best describe:

• A.The management gap
• B.Unmanageable risks
• C.Manageable risks