29 Questions
Which of the following is a top ESG issue according to investment professionals?
Board accountability
What is one of the challenges in considering ESG issues in investing?
Lack of clarity on 'how to' apply ESG methods
According to the text, what percentage of respondents agree that ESG disclosures by listed companies should be subject to some level of independent verification?
69%
According to the text, what percentage of respondents think it is important that ESG disclosures be subject to some level of independent verification?
69%
According to the text, what percentage of respondents said that listed companies should spend on an ESG audit as much as they spend on an accounting audit?
10%
According to the text, what percentage of respondents indicated that they consider ESG issues because it is their fiduciary duty?
37%
According to the text, what percentage of research studies show that solid ESG practices result in better operational performance of firms?
88%
What is the main concern raised by divestment campaigners regarding fossil fuel divestment?
The impact on financial performance
Which region has the highest proportion of survey respondents who consider ESG issues?
Asia-Pacific
What is the main reason behind the perceived regional differences in addressing ESG issues?
Differences in regulation
According to the text, what is one reason why valuations from discounted cash flow analysis may differ?
The analysts have different opinions
What is one challenge in using evidence-based cause-and-effect attribution for ESG methods?
The methods are not well-documented
What is one limitation of ESG analysis mentioned in the text?
It may not lead to investment insights
What is one mode of training on ESG issues mentioned in the text?
Live, in-person structured training course
According to the text, what is one challenge investors face when considering ESG issues in their investment decisions?
Limited availability of relevant and timely information
What is one initiative mentioned in the text that aims to improve ESG disclosure?
Sustainable Stock Exchanges Initiative
According to the text, what are the main sources of ESG information for the majority of respondents?
Public information, third-party research, and company reports
Which of the following best describes green bonds?
Bonds that finance projects with environmental benefits
What is the main concern regarding green bonds?
Whether they finance projects that would not be funded otherwise
What is a social impact bond?
A contract between a special purpose vehicle and the government
How are ESG issues relevant to passive investing?
ESG considerations can be integrated into the benchmark index
According to the text, what is the main reason why investment professionals consider ESG issues?
To manage risks
What is the main method of ESG integration used by investment professionals?
ESG integration
What was the goal of the reassessment of ESG issues in the Candidate Body of Knowledge initiated by CFA Institute?
To identify the scope and practical implications of ESG investing appropriate for the CFA Program
What is the main conclusion regarding the practice of considering ESG issues in investing?
It has evolved significantly from its origins
Which organization believes that every investment analyst should know about the investment risks and opportunities posed by ESG issues?
CFA Institute
How does CFA Institute help investment professionals better understand ESG issues in investing?
Through educational programs
How is the ESG content in the CFA Program curriculum determined?
Through a survey of investment practitioners
What is the top reason investment professionals consider ESG issues?
To manage risks
Test your knowledge on ESG (environmental, social, and governance) investing with questions related to top ESG issues, challenges in considering ESG issues, and survey responses on the importance of independent verification of ESG disclosures.
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