Free CFA Institute ESG-Investing Exam Dumps Questions & Answers

With respect to ESG integration in private equity, which of the following is most likely a challenge an investor may face?

• A.Lack of strategy and long-term orientation from private equity managers
• B.Reporting frameworks that do not account for the relative lack of transparency found in private markets relative to public markets
• C.Lack of capacity within the investee company to fulfill ESG reporting requirements

In the ESG rating process, an assessment of risk, policies, and preparedness is best categorized as part of a(n):

• A.operational assessment.
• B.disclosure-based assessment.
• C.fundamental assessment.

An ESG scorecard for sovereign debt issuers has the following information:
Country 1No carbon policy and high corruption risk
Country 2High-level carbon policy and low corruption risk
Country 3Detailed carbon policy and low corruption risk
Based only on this information, the country with the lowest ESG risk is:

• A.Country 3
• B.Country 2
• C.Country 1.

For investments in wastewater treatment plants, a significant obstacle is:

• A.high capital intensity.
• B.availability of unskilled labor.
• C.lack of demand.

Considering ESG integration, an advantage relevant to private real estate markets but not equities and fixed income is most likely:

• A.adherence to the Global Real Estate Sustainability Benchmark (GRESB) rather than the Sustainability Accounting Standards Board (SASB) framework
• B.majority ownership
• C.coverage of assets by ESG rating agencies