23 Questions
Which organization is NOT mentioned as working to promote ESG considerations in investing?
United Nations Environment Programme
What percentage of the 180 laws and regulatory standards pertaining to corporate sustainability reporting are mandatory?
72%
Which country has a stewardship code for institutional investors?
United Kingdom
What is the objective of the guide on ESG considerations in investing?
To share the views of CFA Institute members
Which label is most closely associated with avoiding morally questionable businesses?
Socially responsible investing
What is the main difference between sustainable investing and socially responsible investing?
Sustainable investing is a newer concept
When did CFA Institute start pursuing its Future of Finance initiative?
2013
Which of the following best describes the term ESG issues?
A term used to refer to environmental, social, and governance issues in investing
Why do some investors consider ESG issues?
All of the above
Which approach is larger in investment management?
Value-based investing
Why do ESG issues not fit well with short-termism in investing?
They tend to affect financial performance over longer periods
Which organization developed industry- and sector-specific ESG performance indicator standards?
The Sustainability Accounting Standards Board
According to the Intergovernmental Panel on Climate Change, what is the impact of continued greenhouse gas emissions?
Negative impact
Which issue is listed as number 5 of the 'top 10 risks in terms of impact' in the World Economic Forum's 'Global Risks 2015 Report'?
Failure of climate-change adaptation
Which issue did respondents rate higher than climate change in the CFA Institute survey?
Environmental degradation
Which of the following is NOT a reason why investment managers consider ESG issues?
Regulation requires it
What is the main reason why asset owners demand that investment managers pay attention to ESG issues?
To help manage investment risks
What is the top reason why some respondents do not consider ESG issues in their investment analysis/decisions?
These issues are not material—no added value
What would cause some respondents to begin considering ESG issues in their investment analysis/decisions?
Demand from clients/investors
The UK Stewardship Code aims to enhance the quality of engagement between asset managers and companies to help improve what?
Long-term risk-adjusted returns to shareholders
The Code for Responsible Investing in South Africa gives guidance on how the institutional investor should execute investment analysis and investment activities and exercise rights so as to promote what?
Sound governance
Why is it difficult to integrate ESG issues into quantitative models?
ESG issues are difficult to assign a monetary value to
What is a well-known indicator of the increasing awareness of ESG issues?
The growing list of signatories to the United Nations–supported Principles for Responsible Investment
Test your knowledge on ESG (Environmental, Social, and Governance) considerations in investing with this quiz. Questions cover various aspects such as organizations promoting ESG, mandatory regulations, stewardship codes, investment objectives, ethical labels, and the difference between sustainable and socially responsible investing.
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