2 CFA ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ISSUES IN INVESTING A Guide for Investment Professionals

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Which method of ESG considerations involves avoiding securities of companies or countries based on traditional moral values and standards and norms?

Exclusionary screening (correct)

Thematic investing

Active ownership

Best-in-class selection

Which method of ESG considerations focuses on selecting the best companies within each industry based on their ESG performance?

Impact investing

ESG integration

Thematic investing (correct)

Exclusionary screening

Which method of ESG considerations involves actively engaging with companies to influence their ESG practices?

Impact investing

ESG integration

Best-in-class selection

Active ownership (correct)

Which regulatory act in the United States mandates say-on-pay votes for executive compensation?

Dodd-Frank Act Signup and view all the answers

What percentage of shareholders approved JP Morgan Chase's pay packages for its executives in 2015?

61% Signup and view all the answers

Which organization encouraged companies in carbon-intensive sectors to report their greenhouse gas emissions to the CDP?

Church Investors Group Signup and view all the answers

What was the improvement in the environmental performance of the 53 companies targeted by the Church Investors Group?

72% Signup and view all the answers

Which company has a higher ESG score compared to the industry average?

Linde Signup and view all the answers

Which company integrates sustainability as a basic consideration in the design of its processes and products?

ASICS Signup and view all the answers

Which company pays particular attention to the environmental impact of its production processes?

Linde Signup and view all the answers

Which action is part of active ownership?

Both A and B Signup and view all the answers

Which factor caused a reduction in Anglo American's target price by -7%?

Wage inflation and labor strikes Signup and view all the answers

What impact did integrating ESG risk analysis have on the Robeco analysts' estimate of Anglo American's target price?

Reduced it by 19% Signup and view all the answers

What is one reason why some analysts have taken a favorable view of Anglo American's ESG performance?

Risk mitigation processes Signup and view all the answers

Which of the following is a characteristic of impact investing?

Investments are expected to generate a social and/or environmental impact Signup and view all the answers

What is the investment objective of the Water- and Air-Themed Fund?

To invest in equities issued by companies focused on the water-related sector worldwide Signup and view all the answers

What is the main focus of the Alternative Energy–Themed Fund?

Investing in companies involved in the alternative energy or energy technology sectors Signup and view all the answers

What types of instruments can the Food- and Agriculture-Themed Fund invest in?

A broad range of instruments including transferable securities, units in collective investment schemes, exchange-traded funds, and exchange-traded commodities Signup and view all the answers

What is the investment strategy of the firm?

To focus on opportunities where investments can generate investor returns through helping meet social or environmental challenges Signup and view all the answers

What is the concept pioneered by The Gym?

Low-cost gyms Signup and view all the answers

What percentage of The Hoxton staff live in underserved areas?

More than 70% Signup and view all the answers

What is SimplySwitch?

An independent and free online and telephone-based price comparison and switching service Signup and view all the answers

Which of the following is NOT considered a violation of international norms for exclusion from the ACWI Select Global Norms and Criteria Index?

Support for controversial regimes Signup and view all the answers

Which of the following activities would lead to exclusion from the ACWI Select Global Norms and Criteria Index?

All of the above Signup and view all the answers

What is the approach to best-in-class selection used by NN Investment Partners?

Preference for companies with better ESG performance levels and improving ESG performance levels Signup and view all the answers

Why does NN Investment Partners believe that the best-in-class method can improve the risk and/or return characteristics of a portfolio?