The standard for the UN Global Compact is overseen by the:
A. International Business Council (IBC)
B. Global Reporting Initiative (GRI)
C. Value Reporting Foundation (VRF)
B. Global Reporting Initiative (GRI)
Which of the following requires investors to act with a more long-term focus?
A. Financial Stability Board (FSB)
B. EU Shareholder Rights Directive (SRD)
C. Global ESG Disclosure Standards
B. EU Shareholder Rights Directive (SRD)
Double materiality is BEST described as?
A. an accounting framework with three parts: social, environmental (or ecological), and financial (people, planet, and profit)
B. investments made with the specific intent of generating positive, measurable social and environmental impact alongside a financial return
C. an extension of financial materiality that considers the impacts of a company on the climate or any other ESG factor
C. an extension of financial materiality that considers the impacts of a company on the climate or any other ESG factor
The efficacy of shareholder engagement depends on:
A. whether divestment is known to be a possible sanction
B. the amount of security in free float
C. the length of ownership of shareholders
A. whether divestment is known to be a possible sanction
In which way can ESG matters reduce risk or enhance returns?
A. Increased likelihood of fines
B. Increased cost and reduced efficiency
C. Increased adaptability to sustainability megatrends
C. Increased adaptability to sustainability megatrends
Which of the following established a framework that lays out the conditions for economic activities to be considered environmentally sustainable?
A. Climate Disclosure Standards Board
B. Task Force on Climate-Related Financial Disclosures
C. EU Taxonomy Regulation
C. EU Taxonomy Regulation
What significantly drives the amount and quality of ESG investing in the investment value chain?
A. The regulations set by government bodies
B. The choices of external asset managers
C. The approach and understanding of ESG factors by asset owners
C. The approach and understanding of ESG factors by asset owners
Investment mandates are important for ESG investing because they:
A. require asset managers to report on the impact of ESG issues on financial performance.
B. require asset managers to report on the ESG ratings of their funds.
C. define the requirements of asset owners with regard to ESG issues.
C. define the requirements of asset owners with regard to ESG issues.
Stock exchanges can BEST support the advancement of ESG investing by:
A. assessing the ESG characteristics of a listed security.
B. increasing ESG disclosure requirements for listed securities.
C. integrating ESG considerations within their voting recommendations.
B. increasing ESG disclosure requirements for listed securities.
How has the ESG offering by asset managers evolved over time?
A. It started with passive investing and evolved to active funds invested in listed equities.
B. It started with active funds invested in listed equities and evolved to other asset classes and passive investing.
C. It has remained constant and focused on listed equities.
B. It started with active funds invested in listed equities and evolved to other asset classes and passive investing.
In relation to the European Green Deal, the “green supporting factor” refers to:
A. standards and labels for green bonds.
B. the treatment of “green” assets in the capital requirements of banks and insurers.
C. a classification system for sustainable activities.
B. the treatment of “green” assets in the capital requirements of banks and insurers.
The Network for Greening the Financial System (NGFS) comprises:
A. multilateral institutions and agencies.
B. central banks and financial supervisors.
C. asset managers and investment banks.
B. central banks and financial supervisors.
In relation to ESG analysis, factors that cause investors to make adjustments to the credit assessment of a company include:
A. the sector and geographic location of the company’s assets.
B. all environmental effects on the company, irrespective of their materiality.
C. solely quantitative environmental factors.
A. the sector and geographic location of the company’s assets.
Which of the following best describes the concept of “natural capital”?
A. Natural resources (such as oil, gas, or timber) that can be sold for a profit in a capitalist economy
B. The sum total of monetary benefits that are directly dependent on nature
C. The stock of natural assets, which include geology, soil, air, water, and all living things
C. The stock of natural assets, which include geology, soil, air, water, and all living things
Which of the following emission sources are considered Scope 3 under the GHG Protocol Standards?
A. Purchased goods and services
B. Purchased electricity
C. Company facilities
A. Purchased goods and services
Which of the following is not a Task Force on Climate-Related Financial Disclosures (TCFD) core element of climate-related disclosures?
A. Risk management
B. Impact
C. Governance
B. Impact
The Shareholder Rights Directive (SRD) is a regulatory initiative to:
A. protect minority shareholders’ interests.
B. reduce the use of proxies by management.
C. counter short-termism.
C. counter short-termism.
The Freshfields report was seminal in understanding that:
A. humanity’s ability to thrive is contingent on respecting planetary boundaries.
B. corporate profits are materially at risk from state intervention.
C. ESG issues are relevant for financial valuation and fiduciary duty.
C. ESG issues are relevant for financial valuation and fiduciary duty.
Which of the following organizations developed a toolkit for establishing long-term, sustainable investment mandates?
A. Principles of Responsible Investment (PRI)
B. International Corporate Governance Network (ICGN)
C. University of Cambridge Institute for Sustainability Leadership
C. University of Cambridge Institute for Sustainability Leadership
Which of the following required investors to be active owners and act with a long-term focus?
A. EU Taxonomy Regulation
B. EU Shareholder Rights Directive (SRD)
C. EU Sustainable Finance Disclosure Regulation
B. EU Shareholder Rights Directive (SRD)
