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

CFA Sustainable-Investing Exam (page: 14)
CFA Sustainable Investing Certificate(-SIC)
Updated on: 09-Feb-2026

Viewing Page 14 of 102
Sustainable-Investing PDF 802 Questions

Which of the following best summarizes the studies on carbon risk?

  1. Companies with lower levels of CO2 emissions are associated with higher returns
  2. Companies with higher levels of CO2 emissions are associated with higher returns
  3. There is no conclusive evidence on the link between a company's level of CO2 emissions and returns

Answer(s): C

Explanation:

Studies on carbon risk have not provided conclusive evidence linking a company's level of CO2 emissions directly to financial returns.
While some studies suggest that companies with lower emissions may be better positioned for long-term success due to regulatory and market shifts, other research indicates that the relationship is complex and influenced by various factors. Therefore, it is not universally accepted that lower emissions consistently correlate with higher returns, nor that higher emissions necessarily lead to higher returns.

Top of Form

Bottom of Form



Which of the following projects are most likely to be financed in the green bond market?

  1. Real estate projects
  2. Manufacturing projects
  3. Communications technology projects

Answer(s): A

Explanation:

In the green bond market, projects that are most likely to be financed include those that have clear environmental benefits. Real estate projects, especially those focusing on energy efficiency, sustainable building practices, and reducing carbon footprints, align well with the objectives of green bonds. These projects can include the development of green buildings, retrofitting existing structures to improve energy efficiency, and incorporating renewable energy sources.



A materiality assessment to identify ESG issues impacting a company's financial performance is most likely measured in terms of:

  1. likelihood only.
  2. magnitude of impact only.
  3. both likelihood and magnitude of impact.

Answer(s): C

Explanation:

A materiality assessment to identify ESG issues impacting a company's financial performance is most effectively measured in terms of both likelihood and magnitude of impact. This approach provides a comprehensive view of potential risks and opportunities by evaluating how likely anissue is to occur and the extent of its potential impact on financial performance. This dual assessment helps in prioritizing ESG issues that are both probable and significant in their effects.



Which of the following is one of the five main drivers of nature change described by the Taskforce on Nature-related Financial Disclosures (TNFD)?

  1. Ecosystem services
  2. Invasive alien species
  3. Transmission channels

Answer(s): B

Explanation:

The Taskforce on Nature-related Financial Disclosures (TNFD) identifies invasive alien species as one of the five main drivers of nature change. These species can significantly disrupt ecosystems, outcompete native species, and lead to biodiversity loss. Understanding and managing the impact of invasive alien species is crucial for maintaining ecosystem health and resilience.



Company reporting and transparency are led by the:

  1. board
  2. auditor
  3. management team

Answer(s): C

Explanation:

Company reporting and transparency are primarily led by the management team. They are responsible for ensuring accurate and comprehensive disclosures, which are then overseen by the audit committee and the board. The management team's role includes preparing reports, implementing internal controls, and ensuring compliance with regulatory requirements. The audit committee and the board provide oversight and ensure that the reports are fair, balanced, and understandable, while the auditor offers independent verification.



In which of the following circumstances is Free, Prior, and Informed Consent (FPIC) most applicable?

  1. Members agreeing to a social media platform's privacy policy
  2. Company constructing a fish farm next to a native waterfront community
  3. Governments passing international standards against forced labor practices

Answer(s): B

Explanation:

Free, Prior, and Informed Consent (FPIC) is most applicable in situations where developments or projects affect indigenous peoples and their lands. For example, if a company plans to construct a fish farm next to a native waterfront community, it must obtain FPIC from the community. This ensures that the community is adequately informed about the project, has the opportunity to voice their concerns, and consents to the project without any coercion.

Top of Form

Bottom of Form



In response to policy changes, several of the world's largest automakers made pledges to halt producing cars with internal combustion engines by 2035.
Which of the following would an asset manager most appropriately use to address this trend?

  1. Factor risk asset allocation model
  2. Liability-driven asset allocation model
  3. Regime switching asset allocation model

Answer(s): C

Explanation:

The regime switching asset allocation model is most appropriate for addressing the trend of major automakers pledging to halt the production of internal combustion engine cars by 2035. This model allows asset managers to adapt to different market regimes, which is crucial given the significant shift in the automotive industry due to policy changes and the transition to electric vehicles. The ability to switch between different allocation strategies based on prevailingeconomic and market conditions helps manage risks and capitalize on emerging opportunities related to the automotive industry's transformation.



Which of the following would most likely see its estimate of intrinsic value increased by analysts?

  1. A company with high climate-related risk
  2. A company facing significant environmental regulations
  3. A company having launched a service that reduces customers' electricity usage

Answer(s): C

Explanation:

A company that has launched a service to reduce customers' electricity usage is likely to see its intrinsic value increased by analysts. This is because such a service directly addresses the growing demand for energy efficiency and sustainability. The MSCI ESG Ratings Methodology highlights that companies which can capitalize on opportunities related to environmental efficiency and innovation are likely to benefit from a better risk and return profile. This aligns with the broader trend towards sustainability and the reduction of energy consumption, making the company more attractive to investors focused on long-term value creation.



Viewing Page 14 of 102



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

Mary 5/16/2023 4:50:00 AM

wish you would allow more free questions
Anonymous


thomas 9/12/2023 4:28:00 AM

great simulation
Anonymous


Sandhya 12/9/2023 12:57:00 AM

very g inood
Anonymous


Agathenta 12/16/2023 1:36:00 PM

q35 should be a
Anonymous


MD. SAIFUL ISLAM 6/22/2023 5:21:00 AM

sap c_ts450_2021
Anonymous


Satya 7/24/2023 3:18:00 AM

nice questions
UNITED STATES


sk 5/13/2023 2:10:00 AM

ecellent materil for unserstanding
INDIA


Gerard 6/29/2023 11:14:00 AM

good so far
Anonymous


Limbo 10/9/2023 3:08:00 AM

this is way too informative
BOTSWANA


Tejasree 8/26/2023 1:46:00 AM

very helpfull
UNITED STATES


Yolostar Again 10/12/2023 3:02:00 PM

q.189 - answers are incorrect.
Anonymous


Shikha Bakra 9/10/2023 5:16:00 PM

awesome job in getting these questions
AUSTRALIA


Kevin 10/20/2023 2:01:00 AM

i cant find aws certified practitioner clf-c01 exam in aws website but i found aws certified practitioner clf-c02 exam. can everyone please verify the difference between the two clf-c01 and clf-c02? thank you
UNITED STATES


D Mario 6/19/2023 10:38:00 PM

grazie mille. i got a satisfactory mark in my exam test today because of this exam dumps. sorry for my english.
ITALY


Bharat Kumar Saraf 10/31/2023 4:36:00 AM

some of the answers are incorrect. need to be reviewed.
HONG KONG


JP 7/13/2023 12:21:00 PM

so far so good
Anonymous


Kiky V 8/8/2023 6:32:00 PM

i am really liking it
Anonymous


trying 7/28/2023 12:37:00 PM

thanks good stuff
UNITED STATES


exampei 10/4/2023 2:40:00 PM

need dump c_tadm_23
Anonymous


Eman Sawalha 6/10/2023 6:18:00 AM

next time i will write a full review
GREECE


johnpaul 11/15/2023 7:55:00 AM

first time using this site
ROMANIA


omiornil@gmail.com 7/25/2023 9:36:00 AM

please sent me oracle 1z0-1105-22 pdf
BANGLADESH


John 8/29/2023 8:59:00 PM

very helpful
Anonymous


Kvana 9/28/2023 12:08:00 PM

good info about oml
UNITED STATES


Checo Lee 7/3/2023 5:45:00 PM

very useful to practice
UNITED STATES


dixitdnoh@gmail.com 8/27/2023 2:58:00 PM

this website is very helpful.
UNITED STATES


Sanjay 8/14/2023 8:07:00 AM

good content
INDIA


Blessious Phiri 8/12/2023 2:19:00 PM

so challenging
Anonymous


PAYAL 10/17/2023 7:14:00 AM

17 should be d ,for morequery its scale out
Anonymous


Karthik 10/12/2023 10:51:00 AM

nice question
Anonymous


Godmode 5/7/2023 10:52:00 AM

yes.
NETHERLANDS


Bhuddhiman 7/30/2023 1:18:00 AM

good mateial
Anonymous


KJ 11/17/2023 3:50:00 PM

good practice exam
Anonymous


sowm 10/29/2023 2:44:00 PM

impressivre qustion
Anonymous