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Exam (elaborations)

CFA ESG Certificate- Chapter 7(100% Correct)

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  • CFA ESG Certificate-
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  • CFA ESG Certificate-

The Aims and objectives for intergrating ESG into an investment process may include: a) Meeting requirements under principles for responsible investment (PRI) regulations. b) Increasing reputational risk at a firm and investment level c) Meeting internal audit demands. d) Improving the qual...

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  • November 12, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • CFA ESG Certificate-
  • CFA ESG Certificate-
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CFA ESG Certificate- Chapter 7(100%
Correct)
The Aims and objectives for intergrating ESG into an investment process may include:
a) Meeting requirements under principles for responsible investment (PRI) regulations.
b) Increasing reputational risk at a firm and investment level
c) Meeting internal audit demands.
d) Improving the quality of engagement and stewardship activities, and increasing
investment returns - ANSWERSd

Qualitative ESG analysis is likely to be used in investment processes that are based on:

a) Company-specific research
b) Fundamental analysis
c) stock-picking
d) all of the above - ANSWERSd

Qualitative analysts and portfolio managers seek to intergrate their qualitative
investment opinion by incorporating:

a) Negative Screening
b) Quantitatie adjustments to financial models and valuations
c) Qualitative measures only
d) None of the above. - ANSWERSb

Elements of ESG intergration include:

a) ESG factor tilts
b) Red flag indicators
c) Company questionaires and management interviews
d) watch lists - ANSWERSa

Which of these statements is not true?

a) The ESG intergration framework is not meant to illustrate the perfect ESG-
intergrated investment process.
b) The ESG intergration techniques of one firm are not necessarily the right techniques
for all firms.
c) There is a consensus amongst firms on which techniques to use to identify and
assess ESG factors.
d) Every firm is unique and will use a selection of the techniques referenced in the ESG
Intergration Framework. - ANSWERSc

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