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Most Recent CFA Institute ESG-Investing Exam Dumps

 

Prepare for the CFA Institute Certificate in ESG Investing exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CFA Institute ESG-Investing exam and achieve success.

The questions for ESG-Investing were last updated on Apr 1, 2025.
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Question No. 1

Which of the following challenges do asset managers face in integrating ESG issues?

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Correct Answer: B

One of the key challenges asset managers face is the lack of methodologies for integrating ESG considerations for non-corporate issuers, such as sovereign bonds or real estate investments. While methodologies for corporate issuers are well developed, extending these frameworks to non-corporate issuers remains a challenge.

ESG Reference: Chapter 9, Page 508 - Investment Mandates, Portfolio Analytics & Client Reporting in the ESG textbook.


Question No. 2

Which of the following is most likely associated with positive screening?

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Correct Answer: C

Positive screening, or best-in-class investing, involves selecting companies that rank highly on ESG criteria relative to their peers within the same sector, rather than excluding entire sectors. (ESGTextBook[PallasCatFin], Chapter 7, Page 325)


Question No. 3

The Integrated Biodiversity Assessment Tool (IBAT) is best described as an interactive mapping tool allowing decisionmakers to:

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Correct Answer: C

The Integrated Biodiversity Assessment Tool (IBAT) is an interactive mapping tool designed to help decision-makers identify biodiversity risks and opportunities within a project boundary. Here's a detailed breakdown:

IBAT Functionality:

IBAT provides access to up-to-date information on biodiversity, including key biodiversity areas and legally protected areas. This enables users to assess the potential impacts of their projects on biodiversity and make informed decisions to mitigate risks.

The tool is specifically designed to integrate biodiversity considerations into business and investment decisions by highlighting areas that may pose biodiversity risks .

Other Descriptions:

While IBAT can support broader biodiversity and social risk management, its primary function is to identify risks and opportunities within a specific project boundary. It is not primarily focused on assessing companies' overall preparedness for biodiversity risk or managing project finance risks in a broader sense .

CFA ESG Investing Reference:

The CFA ESG Investing curriculum discusses various tools and frameworks for integrating biodiversity considerations into investment decisions. IBAT is highlighted as a key tool for identifying site-specific biodiversity risks and opportunities .


Question No. 4

When portfolio managers upload their portfolios onto third-party ESG data provider online platforms, most of these platforms are capable of:

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Correct Answer: A

ESG data provider platforms typically offer features to calculate a portfolio's relative carbon exposure, helping investors manage climate-related risks in line with ESG integration practices. (ESGTextBook[PallasCatFin], Chapter 7, Page 374)


Question No. 5

Under the UK listing regime, Class 1 transactions:

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Correct Answer: A

Under the UK listing regime, Class 1 transactions must be approved via a shareholder vote. These transactions significantly affect a company's assets, profits, or capital, exceeding a 25% threshold, and therefore require detailed justifications and approval from shareholders to ensure transparency and protect shareholder interests.


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