Question 1

Stewardship teams with a governance heritage tend to:

Abe organized by sector.

Bfocus first on individual companies.

Cstart the dialogue with investor relations and then escalate upward.

Answer : C

Question 2

When considering material ESG factors in real estate, which of the following is classified as an environmental factor?

ALocal job creation

BCommunity engagement

CUse of renewable energy

Answer : C

Question 3

Which of the following UK Stewardship Code principles is not addressed in the European Fund and Asset Management Association (EFAMA) Code? The principle that institutional investors should:

Amonitor their investee companies

Breport periodically on their stewardship and voting activities

Chave a robust policy on managing conflicts of interest in relation to stewardship

Answer : B

Question 4

Which of the following is a minimum requirement for Principles for Responsible Investment (PRI) membership?

AParticipation in a shareholder engagement platform

BThe establishment of accountability mechanisms for responsible investment implementation

CImplementation of Task Force on Climate-related Financial Disclosures (TCFD) recommendations

Answer : B

Question 5

The debate around regulating the social media industry is based on risks associated with:

Abig data

Bdigital disruption

Cembedded systems

Answer : A

Free Practice Questions for CFA Institute Sustainable-Investing Exam

Question 1

Question 2

Question 3

Question 4

Question 5