Free Certificate in ESG Investing Exam ESG-Investing Exam Practice Test

Integrating the impact of material ESG factors into traditional financial analysis for a company with strong ESG practices most likely.

• leads to a lower estimate of intrinsic value
• has no impact on intrinsic value
• leads to a higher estimate of intrinsic value

Stock exchanges can contribute to the growth of ESG market by:

• supporting companies to issue more ESG-oriented bonds.
• increasing the disclosure requirements on ESG data by listed companies.
• considering ESG factors when voting on behalf of shareholders at companies' annual general meetings.

According to the framework of the Task Force on Climate-Related Financial Disclosures (TCFD): the formula for carbon intensity at the portfolio level weighs emissions based upon an issuer's:

• profit.
• revenue.
• net assets

In ESG integration, model adjustments are typically performed at the:

• research stage
• valuation stage.
• portfolio construction stage

Which of the following encourages institutional investors to work together on human rights and social issues?

• Human Rights 100+
• OECD Guidelines for Multinational Enterprises
• United Nations Guiding Principles on Business and Human Rights

With respect to the current state of ESG disclosure globally, issuer reporting frameworks for ESG information are

• mandatory
• fragmented.
• harmonized.

Which of the three ESG factors is most often taken into consideration by traditional investment analysts?

• Social
• Governance
• Environmental

Which of the following increases pressure on natural resources?

• Population growth
• Economic recession
• Declining life expectancy

Which of the following statements about corporate governance is most accurate? Companies with a more diverse board of directors are most likely associated with

• lower profitability
• lower stock return volatility.
• less investment in research and development.

Using surface water in a business activity is best characterized as a:

• direct impact on biodiversity
• positive indirect impact on biodiversity
• negative indirect impact on biodiversity