CFA ESG-Investing Exam (page: 19)
CFA Certificate in ESG Investing
Updated on: 09-Feb-2026

Viewing Page 19 of 95

Which of the following climate risks are systemic risks to the financial system?

  1. Policy and legal risks
  2. Technology and stability risks
  3. Physical and transitional risks

Answer(s): C

Explanation:

Systemic risks to the financial system from climate change include both physical and transitional risks. Physical risks refer to the direct impact of climate change, such as extreme weather events and gradual changes in climate. Transitional risks are associated with the shift to a lower-carbon economy, including policy changes, technological advancements, and changing consumer preferences. These risks are interconnected and can significantly affect economic and financial stability.



Which of the following types of ESG bonds provide financing to issuers who commit to future improvements in sustainability outcomes?

  1. Green bonds
  2. Sustainability bonds
  3. Sustainability-linked bonds

Answer(s): C

Explanation:

Sustainability-linked bonds (SLBs) provide financing to issuers who commit to specific improvements in sustainability outcomes. Unlike green or sustainability bonds that fund specific projects, SLBs are tied to the issuer's overall sustainability performance and commitments to achieving predefined sustainability targets. These bonds incentivize issuers to enhance their ESG performance across various aspects, making them a flexible tool for promoting broader sustainability goals.

Top of Form

Bottom of Form



When searching for an asset manager with an ESG approach, in the request for proposal (RFP) an institutional asset owner would most appropriately ask:

  1. which broad market index the asset manager tracks
  2. detailed questions on specific portfolio holdings of the asset manager
  3. if the asset manager aims for positive, measurable ESG outcomes beyond financial returns

Answer(s): C

Explanation:

When searching for an asset manager with an ESG approach, it is essential for an institutional asset owner to understand whether the asset manager's strategy aligns with their sustainability objectives. The most appropriate question to ask in the RFP is whether the asset manager aims for positive, measurable ESG outcomes beyond financial returns. This question assesses the commitment to achieving concrete ESG results, which is a critical factor in evaluating the manager's integration of ESG factors into their investment process. Detailed questions about portfolio holdings or which broad market index the manager tracks are less relevant to assessing the ESG integration.



Companies may be excluded from the UK Modern Slavery Act on the basis of:

  1. size only
  2. sector only.
  3. both size and sector

Answer(s): A

Explanation:

Under the UK Modern Slavery Act, companies are required to publish a statement on the steps they have taken to ensure that slavery and human trafficking are not taking place in their business or supply chains. The Act applies to businesses with a turnover of £36 million or more, making size the primary basis for exclusion. There are no sector-specific exclusions mentioned in the Act.



Which of the following is most likely a reason for concern regarding the quality of a company's ESG disclosures?

  1. The inclusion of audited ESG data
  2. Competitors have stronger disclosure standards
  3. There is written commitment to improve future ESG disclosure

Answer(s): B

Explanation:

A reason for concern regarding the quality of a company's ESG disclosures would be if competitors have stronger disclosure standards. This indicates that the company may be lagging in transparency and accountability compared to its peers, potentially hiding risks or missing opportunities to improve ESG performance.
While audited data and commitments to future improvements are positive signs, lagging behind competitors is a significant red flag.



Viewing Page 19 of 95



Share your comments for CFA ESG-Investing exam with other users:

Antony 11/23/2023 11:36:00 AM

this looks accurate
INDIA


Ethan 8/23/2023 12:52:00 AM

question 46, the answer should be data "virtualization" (not visualization).
Anonymous


nSiva 9/22/2023 5:58:00 AM

its useful.
UNITED STATES


Ranveer 7/26/2023 7:26:00 PM

Pass this exam 3 days ago. The PDF version and the Xengine App is quite useful.
SOUTH AFRICA


Sanjay 8/15/2023 10:22:00 AM

informative for me.
UNITED STATES


Tom 12/12/2023 8:53:00 PM

question 134s answer shoule be "dlp"
JAPAN


Alex 11/7/2023 11:02:00 AM

in 72 the answer must be [sys_user_has_role] table.
Anonymous


Finn 5/4/2023 10:21:00 PM

i appreciated the mix of multiple-choice and short answer questions. i passed my exam this morning.
IRLAND


AJ 7/13/2023 8:33:00 AM

great to find this website, thanks
UNITED ARAB EMIRATES


Curtis Nakawaki 6/29/2023 9:11:00 PM

examination questions seem to be relevant.
UNITED STATES


Umashankar Sharma 10/22/2023 9:39:00 AM

planning to take psm test
Anonymous


ED SHAW 7/31/2023 10:34:00 AM

please allow to download
UNITED STATES


AD 7/22/2023 11:29:00 AM

please provide dumps
UNITED STATES


Ayyjayy 11/6/2023 7:29:00 AM

is the answer to question 15 correct ? i feel like the answer should be b
BAHRAIN


Blessious Phiri 8/12/2023 11:56:00 AM

its getting more technical
Anonymous


Jeanine J 7/11/2023 3:04:00 PM

i think these questions are what i need.
UNITED STATES


Aderonke 10/23/2023 2:13:00 PM

helpful assessment
UNITED KINGDOM


Tom 1/5/2024 2:32:00 AM

i am confused about the answers to the questions. do you know if the answers are correct?
KOREA REPUBLIC OF


Vinit N. 8/28/2023 2:33:00 AM

hi, please make the dumps available for my upcoming examination.
UNITED STATES


Sanyog Deshpande 9/14/2023 7:05:00 AM

good practice
UNITED STATES


Tyron 9/8/2023 12:12:00 AM

so far it is really informative
Anonymous


beast 7/30/2023 2:22:00 PM

hi i want it please please upload it
Anonymous


Mirex 5/26/2023 3:45:00 AM

am preparing for exam ,just nice questions
Anonymous


exampei 8/7/2023 8:05:00 AM

please upload c_tadm_23 exam
TURKEY


Anonymous 9/12/2023 12:50:00 PM

can we get tdvan4 vantage data engineering pdf?
UNITED STATES


Aish 10/11/2023 5:51:00 AM

want to clear the exam.
INDIA


Smaranika 6/22/2023 8:42:00 AM

could you please upload the dumps of sap c_sac_2302
INDIA


Blessious Phiri 8/15/2023 1:56:00 PM

asm management configuration is about storage
Anonymous


Lewis 7/6/2023 8:49:00 PM

kool thumb up
UNITED STATES


Moreece 5/15/2023 8:44:00 AM

just passed the az-500 exam this last friday. most of the questions in this exam dumps are in the exam. i bought the full version and noticed some of the questions which were answered wrong in the free version are all corrected in the full version. this site is good but i wish the had it in an interactive version like a test engine simulator.
Anonymous


Terry 5/24/2023 4:41:00 PM

i can practice for exam
Anonymous


Emerys 7/29/2023 6:55:00 AM

please i need this exam.
Anonymous


Goni Mala 9/2/2023 12:27:00 PM

i need the dump
Anonymous


Lenny 9/29/2023 11:30:00 AM

i want it bad, even if cs6 maybe retired, i want to learn cs6
HONG KONG