Sustainable Finance Quiz PDF
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This document contains a series of questions and answers related to sustainable finance, encompassing topics such as the CSRD, ESG, and the operation of sustainable banks. The questions explore various facets of sustainable practices in the financial sector, including materiality, indices, principles, and practical implications.
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## 22-30- The CSRD (Corporate Sustainability Reporting Directive) of January 2024 introduces: - Strong regulatory pressure in favor of extra-financial disclosure and target more than 50,000 companies in Europe to achieve non-financial reporting with the main goal: accelerate carbon neutrality object...
## 22-30- The CSRD (Corporate Sustainability Reporting Directive) of January 2024 introduces: - Strong regulatory pressure in favor of extra-financial disclosure and target more than 50,000 companies in Europe to achieve non-financial reporting with the main goal: accelerate carbon neutrality objectives in Europe by 2050. - Strong regulatory pressure in favor of extra-financial disclosure and target more than 50,000 companies in Europe to achieve non-financial reporting with the main goal: accelerate the objectives of carbon neutrality in Europe by 2030. ## 41- Financial materiality focuses on - factors that directly influence a company's financial performance. This includes impact on financial indicators, such as cash flow, revenue growth, and profitability. - factors that directly influence a company's financial performance. This includes the impact on stakeholders. - factors that directly influence environmental performance. This includes the impact on the environment. ## 30- Among the main sustainability indices, we find: - Refinitiv Diversity and Inclusion Index, DJSI (Europe), FTSE4Good (Global and Europe), BNPP Gender Equality Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indices, MSCI Low Carbon Leaders Index (World and Europe). - Refinitiv Diversity and Inclusion Index, DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender Equality Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indices, MSCI Low Carbon Leaders Index (World and Europe). - Refinitiv Diversity and Inclusion Index, DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Euronext Vigeo (Europe and Eurozone), Goldman Sachs Global ESG Leaders indices, MSCI Low Carbon Leaders Index (World ## 26- The Social pillar is calculated from: - Community, Human rights, Product responsibility, and Workforce. ## 22-30-What is the EU Taxonomy? - A set of fields/rules defining the disclosure of green requirements ## 23- ESG Controversy Score is a: - company's ESG score weighted by ESG controversies published in global media. ## 27- The Governance Pillar is calculated from: - CSR strategy, Management, and Stakeholders. ## 38- What are the sustainable development goals? - A collection of 17 interlinked global goals designed to achieve a better and more sustainable future proposed by the UN. ## 34- Impact investing is an investment that: - Aims to have a positive environmental and social impact; delivers a Financial Return on Capital; and requires regular reporting on ESG. ## 24- ESG Combined score is a: - ESG score adjusted by ESG controversies. ## 40- Impact materiality focuses on - the societal and environmental impacts of a company. It assesses how a company's activities affect various stakeholders". ## 42- The double materiality forces: - Companies to publish their "Impact materiality" (company's impact on climate and population), and their "Financial materiality" (how the ESG concept influences the company's financial results). ## impacting the performance of banks? - An increase in the default frequency of their clients ## 22-32-The Hard Law is composed by: - Formal Rules, Monitoring and control, Sanctions for non-compliance. ## 22- ESG Score is a: - score based on self-reported information across corporate pillars E, S, and G. ## The term Anthropocene began when - The influence of humans on ecosystems has become significant on the scale of Earth's history ## The world's largest CO2 emitters are in order - Asia Pacific>North America>Europe>Africa. ## 2015 Paris Agreement goal is to hold the increase in the global average temperature - below 2°C above pre-industrial levels ## 12- The main rules/principles of sustainable finance are: - Responsible, ethical, performant, useful, safe, clean, altruistic. ## 15- The biggest bank in the world is: - Industrial and Commercial Bank of China (5.5 trillion USD) ## 21- Which bank is not completely sustainable? - Goldman Sachs. ## 13- Why do banks exist? - The raison d'être of banks is explained by the existence of friction in capital markets and asymmetry of information ## 20- Triodos Bank: - promotes responsible and transparent banking. ## 16- The stakeholder theory Ed. FREEMAN (1984): - It identifies the groups that are stakeholders of a corporation. ## 17- A bank that aims to try to limit costs and investment losses related to environmental risk and develop environmental investment funds is a: - Preventing/Offensive bank. ## 19- A sustainable Bank is a: - Strong financial business + performance + responsibility towards society + long-term financing. ## 14- In general, in Market-Based system countries (USA and UK): - The size of the banking system (total assets/GDP) compared to the GDP is lower than the equity market size (Equity capitalization/GDP). ## 18- The Socially Responsible Investment (SRI) is a strategy that considers: - Not only the financial returns from an investment but also its impact on environmental, ethical, or social change. ## 9- The modern portfolio theory is a financial theory developed in 1952 by Harry MARKOWITZ shows: - How rational investors use diversification to optimize their portfolio by mixing asset A and asset B to obtain an optimal couple risk-return. ## 5- Net Zero Banking Alliance is a program launched in April 2021 under the United Nations Environment Program Finance Initiative (UNEP-FI) targets: - accelerating the implementation of decarbonization strategies via the financial sector. ## 7- The main criticism addressed to the neoclassical financial theory is that it has failed to incorporate into its corpus notions of - Altruism, Morality, Ethics, Emotional intelligence ## 6- In 2020 the value of sustainable assets under management (AUM) is 35.5 billion USD: - It is lower than the amount of assets under management worldwide. ## The world's largest CO2 emitters are in order - Asia Pacific>North America>Europe>Africa. ## When old information comes into the market, it is immediately reflected in stock prices and investors are rational. - When new information comes into the market, it is immediately reflected in stock prices and investors are rational. ## 21- Which bank is not completely sustainable? - Goldman Sachs. ## 36- What is the difference between scope 1 and scope 3 GHG (Greenhouse Gas Emission) emissions? - Scope 1 are the direct emissions while Scope 3 are indirect. ## 12:34 - Companies to publish their "Impact materiality" (company's impact on climate and population), and their "Financial materiality" (how the ESG concept influences the company's financial results). ## 37- What are scope 2 emissions? - Indirect GHG emissions associated with the purchase of electricity, steam, and heat.