ESG Analysis, Valuation and Integration 2

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What does a quantitative approach have to consider when dealing with missing data?

The engagement of the company

The strength of environmental accounting

The disclosure of carbon intensity

The materiality of the missing information (correct)

What might be a red flag for an analyst to recommend any investment?

The strength of environmental accounting

The hiring of a new CEO

Insufficient detail on long-term incentive plans (correct)

A lack of disclosure on carbon intensity

Which of the following factors were considered in the G factors?

Economic growth

Health spending

Political stability (correct)

Population size

Why did the investor judge Russia's social aspect to be unfavorable in the long term?

Unfavorable demographics profile Signup and view all the answers

Which factor(s) are considered when weighting the remaining companies in the portfolio?

All of the above Signup and view all the answers

How often are the calculations performed and the portfolio adjusted?

Once a quarter Signup and view all the answers

What program could be implemented for companies not meeting the specified environmental criteria?

Stewardship program Signup and view all the answers

What does the fund manager consider when adjusting the target multiples on ratio analysis?

Discount or premium and discount rate Signup and view all the answers

Which of the following is a key factor considered in the quantitative systematic approach to the environmental tilted mandate in global equities?

The use of at least two third-party ESG scoring systems Signup and view all the answers

Which of the following is NOT a rule or factor considered in the quantitative systematic approach to the environmental tilted mandate in global equities?

The use of at least two third-party ESG scoring systems Signup and view all the answers

Which type of companies are deemed ineligible for the fund in the quantitative systematic approach to the environmental tilted mandate in global equities?

Companies that score below the minimum threshold on the scorecard approach Signup and view all the answers

What is the primary objective of the foundation endowment in the quantitative systematic approach to the environmental tilted mandate in global equities?

To fund climate science Signup and view all the answers

What type of assessments are performed in addition to the DCF scenario analysis?

Sum-of-the-parts assessments Signup and view all the answers

What are some of the factors considered in the credit analysis of a corporate bond?

Market position and competitive profile Signup and view all the answers

What is the purpose of the quantitative score in the ESG analysis of a company?

To aggregate metrics from ESG research providers and third-party sources Signup and view all the answers

What is the role of the board of directors in overseeing sustainability initiatives?

They formally oversee sustainability initiatives Signup and view all the answers

What is the purpose of the quantitative ESG (QESG) score?

To assess a company's overall ESG performance Signup and view all the answers

Why was the ESG score of the state-owned oil producer upgraded in the case study?

The company improved its worker safety Signup and view all the answers

How does the investor in the sovereign debt analysis case study assess a country's financial stability?

By reviewing the country's ESG factors Signup and view all the answers

What factors did the investor evaluate to gauge the risks associated with attracting and retaining talent?

Average employee wage and industry position Signup and view all the answers

What are the four areas in which the Global Equities team aims to invest only in companies that perform strongly?

Business model, market share opportunity, end-market growth, and ESG Signup and view all the answers

What is an example of an ESG opportunity identified by the Global Equities team?

Data analytics business Signup and view all the answers

Which factor might an analyst consider when judging the materiality of missing information?

The analyst's personal opinion on the industry's carbon intensity Signup and view all the answers

What might be a reason for an analyst to red flag an investment completely?

The company's lack of disclosure on long-term incentive plans for management Signup and view all the answers

Which factors were considered in the FSS score for Russia?

Regulatory quality, rule of law, control of corruption Signup and view all the answers

What indexes were used to judge social capital strength in Russia?

A life expectancy index, an education index, and a human development index Signup and view all the answers

What was the overall FSS score given to Russia?

-4 Signup and view all the answers

Which team is responsible for developing the quantitative ESG (QESG) score for a company?

Central ESG/responsibility team Signup and view all the answers

What were the specific improvements in the company's ESG factors that led to the upgrade of its ESG score?

Improvement in worker safety and reduction in sulfur oxide emissions Signup and view all the answers

Which of the following is NOT a key operational risk to Company Z?

The potential for changes in regulations that could impact the company's operations Signup and view all the answers

What is the purpose of the proprietary scoring system in the quantitative systematic approach to an environmental tilted mandate in global equities?

To combine with the third-party scores for a comprehensive evaluation Signup and view all the answers

What are the key factors considered by the fund manager in the quantitative systematic approach to an environmental tilted mandate in global equities?

Material environmental risks and opportunities Signup and view all the answers

Which of the following is true about the rebalancing frequency in the quantitative systematic approach to an environmental tilted mandate in global equities?

It is done quarterly Signup and view all the answers

Which of the following is NOT a strength of the examined beverages company's ESG profile?

No significant challenges seen Signup and view all the answers

What is a material issue for the beverages sector mentioned in the text?

Lack of water affecting crop yields and prices Signup and view all the answers

What is the preferred method of modeling used by the team for a company-specific assessment?

DCF and explicit model scenarios for sales, margins, and asset turns Signup and view all the answers

What does the credit investor evaluate when analyzing a corporate bond for investment?