Amazon
Avaya
Cisco
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL
Juniper
Microsoft
NVIDIA
Okta
Palo Alto Networks
Salesforce
SAP
ServiceNow
All Vendors
  1. Home
  2. CFA
  3. ESG-Investing

CFA ESG-Investing Exam (page: 6)
CFA Certificate in ESG Investing
Updated on: 29-Mar-2026

Viewing Page 6 of 95
ESG-Investing PDF 618 Questions

What type of provider of ESG-related products and services is CDP (formerly known as Carbon Disclosure Project)?

  1. Nonprofit
  2. Large for-profit
  3. Boutique for-profit

Answer(s): 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 organization (NGO) that supports companies, financial institutions, and cities in disclosing and managing their environmental impacts. It runs a global environmental disclosure system, which involves nearly 10,000 companies, cities, states, and regions reporting on their risks and opportunities related to climate change, water security, and deforestation.


Reference:

The CFA ESG Investing curriculum recognizes CDP as a key player in environmental disclosure and management, emphasizing its role as a nonprofit organization facilitating transparency and accountability in environmental impacts.



The investor initiative FAIRR focuses on screening out companies

  1. mining ancestral lands.
  2. using suppliers that do not pay a living wage.
  3. exhibiting poor antibiotic stewardship in animal farming

Answer(s): C

Explanation:

The FAIRR initiative focuses on screening out companies exhibiting poor antibiotic stewardship in animal farming. Here's why:

FAIRR Initiative:

FAIRR (Farm Animal Investment Risk & Return) is an investor network that aims to address risks related to intensive livestock production. One of its key focus areas is antimicrobial resistance, which includes poor antibiotic stewardship in animal farming.


Reference:

The CFA ESG Investing curriculum highlights the FAIRR initiative's role in promoting responsible investment by addressing issues like antibiotic use in animal farming, emphasizing the health and environmental risks associated with poor practices in this area.



An ESG scorecard for sovereign debt issuers has the following information:

Country 1 No carbon policy and high corruption risk

Country 2 High-level carbon policy and low corruption risk

Country 3 Detailed carbon policy and low corruption risk

Based only on this information, the country with the lowest ESG risk is:

  1. Country 1.
  2. Country 2
  3. Country 3

Answer(s): C

Explanation:

Based on the provided information, Country 3, with a detailed carbon policy and low corruption risk, has the lowest ESG risk. Here's the reasoning:

Carbon Policy and Corruption Risk:

A high-level or detailed carbon policy indicates a strong commitment to addressing climate change, which reduces environmental risk.

Low corruption risk indicates good governance, which further reduces overall ESG risk.

Therefore, Country 3, which has both a detailed carbon policy and low corruption risk, presents the lowest ESG risk compared to the others.


Reference:

The CFA ESG Investing curriculum emphasizes the importance of robust carbon policies and low corruption risks in assessing the ESG profiles of sovereign debt issuers. Strong environmental and governance practices are key indicators of low ESG risk.



Avoiding long term transition risk can most likely be achieved by:

  1. investing in companies with stranded assets.
  2. divesting highly carbon-intensive investments in the energy sector.
  3. reducing exposure to companies exposed to extreme weather events

Answer(s): B

Explanation:

Avoiding long-term transition risk can most likely be achieved by divesting highly carbon-intensive investments in the energy sector. Here's why:

Long-term Transition Risk:

Transition risk refers to the financial risks associated with the transition to a low-carbon economy. Carbon-intensive investments are particularly vulnerable as regulations and market preferences shift towards cleaner energy.

Divesting from these investments reduces exposure to potential losses from stranded assets and regulatory penalties.

This strategy aligns with the need to mitigate long-term transition risks, ensuring portfolio resilience as the global economy transitions to sustainable energy sources.


Reference:

The CFA ESG Investing curriculum discusses strategies for managing transition risks, highlighting divestment from carbon-intensive sectors as an effective approach to mitigate long-term risks and align with sustainable investment practices.



Increased investment crowding into more ESG-friendly sectors is most likely to increase

  1. valuations
  2. expected returns.
  3. materiality thresholds

Answer(s): A

Explanation:

Increased investment crowding into more ESG-friendly sectors is most likely to increase valuations.
When a significant amount of capital flows into ESG-friendly sectors, the demand for these assets rises, leading to higher prices and, consequently, higher valuations.

Demand and Supply Dynamics: As more investors seek to allocate their capital to ESG-friendly sectors, the increased demand for these assets outpaces the supply, driving up prices.

Market Perception: ESG-friendly sectors are often perceived as more sustainable and less risky in the long term. This positive market perception contributes to higher valuations as investors are willing to pay a premium for such assets.

Lower Cost of Capital: Companies in ESG-friendly sectors may benefit from a lower cost of capital due to their attractiveness to investors. This can further enhance their valuations as the lower cost of capital translates into higher net present value of future cash flows.


Reference:

MSCI ESG Ratings Methodology (2022) - Discusses the impact of increased capital flows into ESG- friendly sectors on market valuations.

ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the relationship between investor demand for ESG assets and their market valuations.



Viewing Page 6 of 95



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

Angel 8/30/2023 10:58:00 PM

i think you have the answers wrong regarding question: "what are three core principles of web content accessibility guidelines (wcag)? answer: robust, operable, understandable
UNITED STATES


SH 5/16/2023 1:43:00 PM

these questions are not valid , they dont come for the exam now
UNITED STATES


sudhagar 9/6/2023 3:02:00 PM

question looks valid
UNITED STATES


Van 11/24/2023 4:02:00 AM

good for practice
Anonymous


Divya 8/2/2023 6:54:00 AM

need more q&a to go ahead
Anonymous


Rakesh 10/6/2023 3:06:00 AM

question 59 - a newly-created role is not assigned to any user, nor granted to any other role. answer is b https://docs.snowflake.com/en/user-guide/security-access-control-overview
Anonymous


Nik 11/10/2023 4:57:00 AM

just passed my exam today. i saw all of these questions in my text today. so i can confirm this is a valid dump.
HONG KONG


Deep 6/12/2023 7:22:00 AM

needed dumps
INDIA


tumz 1/16/2024 10:30:00 AM

very helpful
UNITED STATES


NRI 8/27/2023 10:05:00 AM

will post once the exam is finished
UNITED STATES


kent 11/3/2023 10:45:00 AM

relevant questions
Anonymous


Qasim 6/11/2022 9:43:00 AM

just clear exam on 10/06/2202 dumps is valid all questions are came same in dumps only 2 new questions total 46 questions 1 case study with 5 question no lab/simulation in my exam please check the answers best of luck
Anonymous


Cath 10/10/2023 10:09:00 AM

q.112 - correct answer is c - the event registry is a module that provides event definitions. answer a - not correct as it is the definition of event log
VIET NAM


Shiji 10/15/2023 1:31:00 PM

good and useful.
INDIA


Ade 6/25/2023 1:14:00 PM

good questions
Anonymous


Praveen P 11/8/2023 5:18:00 AM

good content
UNITED STATES


Anastasiia 12/28/2023 9:06:00 AM

totally not correct answers. 21. you have one gcp account running in your default region and zone and another account running in a non-default region and zone. you want to start a new compute engine instance in these two google cloud platform accounts using the command line interface. what should you do? correct: create two configurations using gcloud config configurations create [name]. run gcloud config configurations activate [name] to switch between accounts when running the commands to start the compute engine instances.
Anonymous


Priyanka 7/24/2023 2:26:00 AM

kindly upload the dumps
Anonymous


Nabeel 7/25/2023 4:11:00 PM

still learning
Anonymous


gure 7/26/2023 5:10:00 PM

excellent way to learn
UNITED STATES


ciken 8/24/2023 2:55:00 PM

help so much
Anonymous


Biswa 11/20/2023 9:28:00 AM

understand sql col.
Anonymous


Saint Pierre 10/24/2023 6:21:00 AM

i would give 5 stars to this website as i studied for az-800 exam from here. it has all the relevant material available for preparation. i got 890/1000 on the test.
Anonymous


Rose 7/24/2023 2:16:00 PM

this is nice.
Anonymous


anon 10/15/2023 12:21:00 PM

q55- the ridac workflow can be modified using flow designer, correct answer is d not a
UNITED STATES


NanoTek3 6/13/2022 10:44:00 PM

by far this is the most accurate exam dumps i have ever purchased. all questions are in the exam. i saw almost 90% of the questions word by word.
UNITED STATES


eriy 11/9/2023 5:12:00 AM

i cleared the az-104 exam by scoring 930/1000 on the exam. it was all possible due to this platform as it provides premium quality service. thank you!
UNITED STATES


Muhammad Rawish Siddiqui 12/8/2023 8:12:00 PM

question # 232: accessibility, privacy, and innovation are not data quality dimensions.
SAUDI ARABIA


Venkat 12/27/2023 9:04:00 AM

looks wrong answer for 443 question, please check and update
Anonymous


Varun 10/29/2023 9:11:00 PM

great question
Anonymous


Doc 10/29/2023 9:36:00 PM

question: a user wants to start a recruiting posting job posting. what must occur before the posting process can begin? 3 ans: comment- option e is incorrect reason: as part of enablement steps, sap recommends that to be able to post jobs to a job board, a user need to have the correct permission and secondly, be associated with one posting profile at minimum
UNITED KINGDOM


It‘s not A 9/17/2023 5:31:00 PM

answer to question 72 is d [sys_user_role]
Anonymous


indira m 8/14/2023 12:15:00 PM

please provide the pdf
UNITED STATES


ribrahim 8/1/2023 6:05:00 AM

hey guys, just to let you all know that i cleared my 312-38 today within 1 hr with 100 questions and passed. thank you so much brain-dumps.net all the questions that ive studied in this dump came out exactly the same word for word "verbatim". you rock brain-dumps.net!!! section name total score gained score network perimeter protection 16 11 incident response 10 8 enterprise virtual, cloud, and wireless network protection 12 8 application and data protection 13 10 network défense management 10 9 endpoint protection 15 12 incident d
SINGAPORE