ESG Investing exam

A company reduces water usage and increases usage of more expensive resources after regulations become more stringent. This most likely impacts:A . revenuesB . provisionsC . operating expenditureView AnswerAnswer: C Explanation: When a company reduces water usage and increases the use of more expensive resources due to more stringent regulations,...

Which of the following is an example of a just’ transition with regards to climate change?A . A company issues a first transition bond to finance a gas-fired power utility projectB . A manufacturer designs products that are more reusable and recyclable to support the circular economyC . A government...

The investor initiative FAIRR focuses on screening out companiesA . mining ancestral lands.B . using suppliers that do not pay a living wage.C . exhibiting poor antibiotic stewardship in animal farmingView AnswerAnswer: C Explanation: The FAIRR initiative focuses on screening out companies exhibiting poor antibiotic stewardship in animal farming. Here...

With respect to ESG integration, adjusting financial model inputs based on an evaluation of a company’s ESG risk factors is an example of a:A . hybrid approachB . qualitative approach.C . quantitative approachView AnswerAnswer: C Explanation: Adjusting financial model inputs based on an evaluation of a company’s ESG risk factors...

The triple bottom line accounting theory considers people, profit, and:A . planetB . efficiency.C . licence to operateView AnswerAnswer: A Explanation: The triple bottom line accounting theory considers people, profit, and planet. This framework expands the traditional financial bottom line to include social and environmental dimensions, emphasizing sustainable and responsible...

The United Nations Sustainable Development Goals (SDGs) are particularly aimed atA . investorsB . corporations.C . governmentsView AnswerAnswer: C Explanation: The United Nations Sustainable Development Goals (SDGs) are particularly aimed at governments. The SDGs provide a comprehensive framework for countries to address global challenges and promote sustainable development. Policy and...

Which of the following greenhouse gases (GHGs) has the longest lifetime in the atmosphere?A . MethaneB . Carbon dioxideC . Fluorinated gasView AnswerAnswer: C Explanation: Among the greenhouse gases (GHGs) listed, fluorinated gases have the longest atmospheric lifetimes. Here's a detailed breakdown: Methane (CH4): Methane is a potent greenhouse gas...

Human rights violations are most likely to affect workers employedA . by first-tier suppliers to publicly traded companiesB . by second-tier suppliers to publicly traded companies.C . deep within the supply chain of publicly traded companies.View AnswerAnswer: C Explanation: Human rights violations are most likely to occur deep within the...

Which of the following is an environmental megatrend that has a severe social impact?A . UrbanizationB . GlobalizationC . Mass migrationView AnswerAnswer: C Explanation: Mass migration is an environmental megatrend that has a severe social impact. Environmental changes, such as climate change, natural disasters, and resource depletion, can force large...

What type of provider of ESG-related products and services is CDP (formerly known as Carbon Disclosure Project)?A . NonprofitB . Large for-profitC . Boutique for-profitView AnswerAnswer: A Explanation: CDP (formerly known as the Carbon Disclosure Project) is a nonprofit organization. Here’s a detailed explanation: Nonprofit Organization: CDP is a non-governmental...