Free Sustainable Investing Certificate(CFA-SIC) Exam Sustainable-Investing Exam Practice Test

An organization conducts assessments that highlight events, behaviors, and practices that may lead to reputational and business risks and opportunities. This organization is best classified as a provider of:

• Integrated research
• ESG news and controversy alerts

Which of the following countries have a joint audit requirement that all public interest entities must engage at least two independent accounting firms to perform an annual audit?

• Germany
• United Kingdom

If an index excludes companies that earn revenues from gambling, the index is most likely using:

• Idiosyncratic exclusions.
• Conduct-related exclusions.

Non-recyclable waste is eliminated in the:

• reuse economy
• linear economy
• circular economy

A company is accused of surveying employees to prevent them from forming a union. The decision of an asset manager to divest from holding shares in the company is an example of:

• universal exclusion.
• idiosyncratic exclusion.
• conduct-related exclusion.

Material ESG risks that could be managed by a company but which are not yet managed best describe:

• Manageable risks
• Unmanageable risks
• The management gap

When assessing credit and ESG ratings, which of the following statements is most accurate?

• The correlation between country ESG risk and credit ratings is high
• The correlation between ESG ratings among rating providers is high
• The correlation between credit ratings among credit rating agencies (CRAs) is low

The launch of the European Green Deal in 2020 is intended to:

• make the European Union climate neutral by 2050.
• reduce greenhouse gas emissions in the European Union by 55% by 2030.
• mobilize $372 billion across the European Union of which 30% will contribute to climate objectives.

Externalities for an infrastructure asset are issues:

• Caused by the asset itself that impact the asset's technical ability to operate.
• Originating outside the asset that impact the asset's technical ability to operate.

According to the fundamental conventions of the International Labour Organization (ILO), which of the following should not be supported as a labor right by companies?

• Minimum age
• Freedom of association