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Note! ESG-Investing has been withdrawn. The new exam code is Sustainable-Investing

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ESG-Investing Questions and Answers

Question # 1

Are the following statements relating to investor engagement accurate?

Statement 1: Investors need to frame the engagement topic into a broader discussion around strategy and long-term financial performance with the management team.

Statement 2: Active investment houses are working to ensure that their portfolio managers can deliver stewardship alongside their regular monitoring of investee companies.

A.

No, only Statement 1 is accurate

B.

No, only Statement 2 is accurate

C.

Yes, both statements are accurate

Question # 2

Active ownership most likely:

A.

Emphasizes negative screening.

B.

Prioritizes disinvestment activities.

C.

Uses a proxy voting strategy driven by a clear agenda.

Question # 3

Scorecards for ESG analysis are most likely used to translate:

A.

Qualitative judgments on material ESG factors into numerical scores.

B.

Quantitative judgments on material ESG factors into numerical scores.

C.

Qualitative judgments on only the mandatory ESG factors into numerical scores.

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