Top ESG-Investing Detailed Study Dumps | Efficient ESG-Investing Best Practice: Certificate in ESG Investing
P.S. Free & New ESG-Investing dumps are available on Google Drive shared by PassExamDumps: https://drive.google.com/open?id=1HGyJBP4eEOa-8G6zkOoeYkiY45O_BUcp
There is no royal road to sucess, and only those who do not dread the fatiguing climb of gaining its numinous summits. A valid IT certification will contribute to your future. ESG-Investing study guide files will help you get a certification easily. Let's try to make the best use of our resources and take the best way to clear exams with ESG-Investing Study Guide files. If you are an efficient working man, purchasing valid study guide files will be suitable for you.
CFA Institute ESG-Investing Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
Topic 4
>> ESG-Investing Detailed Study Dumps <<
Free PDF CFA Institute - High Hit-Rate ESG-Investing - Certificate in ESG Investing Detailed Study Dumps
Constant learning is necessary in modern society. If you stop learning new things, you cannot keep up with the times. Our ESG-Investing study materials cover all newest knowledge for you to learn. In addition, our ESG-Investing learning braindumps just cost you less time and efforts. And we can claim that if you prapare with our ESG-Investing Exam Questions for 20 to 30 hours, then you are able to pass the exam easily. What are you looking for? Just rush to buy our ESG-Investing practice engine!
CFA Institute Certificate in ESG Investing Sample Questions (Q231-Q236):
NEW QUESTION # 231
Avoiding long term transition risk can most likely be achieved by:
Answer: C
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.
CFA ESG Investing References:
* 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.
NEW QUESTION # 232
Which of the following most likely protects minority shareholders?
Answer: C
Explanation:
Pre-emption rightsgiveexisting shareholders priority when new shares are issued, preventingdilutionof their ownership stakes. This isa key protection for minority shareholders.
* Dual-class shares (A) and double voting rights (C) favor controlling shareholders, reducing minority shareholder influence.
References:
* OECD Corporate Governance Principles
* CFA Institute Minority Shareholder Protection Report
* UK Companies Act on Pre-Emption Rights
========
NEW QUESTION # 233
When assessing the investment risk of a coal mining company, the concept of double materiality refers to the company reporting on matters of:
Answer: C
Explanation:
Double materiality is a concept in ESG and sustainable investing that refers to the dual perspective on materiality, which encompasses both financial and non-financial aspects. When assessing the investment risk of a coal mining company, double materiality requires the company to report on matters of both financial and impact materiality. This includes how the company's activities impact the environment and society (people and planet materiality), as well as how environmental and social issues affect the company's financial performance.
Detailed Explanation:
* Definition of Double Materiality:
* Double materiality integrates both traditional financial materiality and environmental and social materiality.
* Financial materiality focuses on the impact of environmental, social, and governance (ESG) factors on the company's financial performance.
* Environmental and social materiality focuses on the company's impact on the environment and society.
* Application in ESG Assessments:
* For a coal mining company, this means reporting not only on how environmental regulations or social issues might impact their financial outcomes but also on how their operations affect the environment and society.
* For example, the financial materiality perspective might consider how carbon taxes or pollution regulations affect the company's profitability.
* The environmental and social materiality perspective would assess the company's impact on air and water quality, local communities, and biodiversity.
* Regulatory and Reporting Frameworks:
* The concept of double materiality is embedded in various ESG reporting frameworks, such as the Global Reporting Initiative (GRI) and the European Union's Corporate Sustainability Reporting Directive (CSRD).
* These frameworks require companies to disclose information on both how ESG issues affect them financially and how their operations impact society and the environment.
* References from CFA ESG Investing Standards:
* The CFA Institute's ESG Disclosure Standards for Investment Products emphasize the importance of considering both financial and non-financial impacts in ESG reporting.
* According to the MSCI ESG Ratings Methodology, companies are evaluated on their exposure to ESG risks and opportunities and their management of these issues, which reflects the principles of double materiality.
* Conclusion:
* Double materiality ensures a comprehensive assessment of a company's performance, considering
* both internal financial impacts and external societal impacts.
* For investors, this approach provides a holistic view of the company's ESG performance, facilitating better-informed investment decisions.
This dual focus on "people and planet materiality" aligns with sustainable investing goals, ensuring that companies are accountable for their environmental and societal impacts while also managing financial risks associated with ESG factors.
NEW QUESTION # 234
To address conflicts of interest and maintain the independence of audit firms, EU law requires firms to abide by:
Answer: B
Explanation:
The European Union Audit Reform (Regulation (EU) No 537/2014) imposes strict rules on audit firms to ensure independence and reduce conflicts of interest.
Why C is correct:
The EU restricts non-audit services that auditors can provide to clients they audit.
A monetary cap of 70% of audit fees is imposed on permissible non-audit services to limit financial dependence.
These measures ensure auditors do not compromise audit quality by having financial incentives to approve misleading financial statements.
Why not A or B?
A is incomplete-a list of allowable services alone does not limit the financial influence of consulting fees.
B is incomplete-a monetary cap alone does not specify which services are prohibited.
References:
EU Regulation No 537/2014 on Audit Reform
European Commission's Guidelines on Auditor Independence (2021)
NEW QUESTION # 235
A portfolio manager may need to adopt a more appropriate ESG benchmark rather than a broad market benchmark if the degree of exclusions results in:
Answer: A
Explanation:
A portfolio manager may need to adopt a more appropriate ESG benchmark rather than a broad market benchmark if the degree of exclusions results in high active share and high tracking error. High active share indicates that the portfolio significantly deviates from the benchmark, while high tracking error measures the volatility of these deviations.
High Active Share: Excluding a significant number of securities from the investment universe to align with ESG criteria can lead to a portfolio that is very different from the broad market benchmark. This high active share reflects the extent to which the portfolio composition differs from the benchmark.
High Tracking Error: The deviations from the benchmark can lead to high tracking error, indicating the portfolio's performance can vary significantly from the benchmark. This variability can be a result of the different risk and return characteristics of the excluded securities.
Appropriate ESG Benchmark: To accurately measure performance and risk, it is essential to use a benchmark that reflects the ESG criteria applied in the portfolio. An ESG-specific benchmark would provide a more relevant comparison and better align with the investment strategy.
Reference:
MSCI ESG Ratings Methodology (2022) - Explains the importance of selecting appropriate benchmarks for ESG-focused portfolios to ensure alignment with investment objectives.
ESG-Ratings-Methodology-Exec-Summary (2022) - Discusses the impact of exclusions on portfolio metrics such as active share and tracking error, and the need for suitable ESG benchmarks.
NEW QUESTION # 236
......
This practice exam software includes all ESG-Investing exam questions that have a high chance of appearing in the Certificate in ESG Investing exam. The ESG-Investing practice exam allows you to set the number of questions and time for each attempt and presents you with a self-assessment report showing your performance. You might not be able to get all-in-one practice material for the Certificate in ESG Investing ESG-Investing of such excellent quality anywhere else.
ESG-Investing Best Practice: https://www.passexamdumps.com/ESG-Investing-valid-exam-dumps.html
P.S. Free 2025 CFA Institute ESG-Investing dumps are available on Google Drive shared by PassExamDumps: https://drive.google.com/open?id=1HGyJBP4eEOa-8G6zkOoeYkiY45O_BUcp