CFA Institute ESG-Investing Certificate in ESG Investing Exam Exam Practice Test Questions

• Question 1

  If a company faces significant environmental regulations, investors would most likely decrease the company’s:

  • Discount rate.
  • Terminal growth rate.
  • Cash flow projections.

  Show Answer Answer: C Next

• Question 2

  The World Bank's World Governance Indicators dataset includes rankings on:

  • Rule of law.
  • Credit rating.
  • The government debt to GDP ratio.

  Show Answer Answer: A Next

• Question 3

  Which of the following social factors most likely impacts a company's external stakeholders?

  • Working conditions, health, and safety
  • Employment standards and labor rights
  • Product liability and consumer protection

  Show Answer Answer: C Next

• Question 4

  Best-in-class funds most likely:

  • Target a higher ESG rating than that of a corresponding index
  • Include only companies that are considered responsible investments
  • Score companies using a common set of ESG criteria and weightings across sectors

  Show Answer Answer: A Next

• Question 5

  Which of the following was established by the United Nations Environment Programme Finance Initiative (UNEP FI)?

  • Principles for Sustainable Insurance (PSI)
  • Climate Disclosure Standards Board (CDSB)
  • Global Sustainable Investment Alliance (GSIA)

  Show Answer Answer: A Next