Master CFA Institute ESG-Investing Exam with Reliable Practice Questions
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Which of the following statements regarding corporate governance is most accurate?
Correct : B
Independence from previous boards is critical to ensuring that new boards can bring fresh perspectives and avoid entrenchment of outdated or ineffective policies, thus improving governance practices. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)
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Which of the following is a minimum requirement for Principles for Responsible Investment (PRI) membership?
Correct : B
A minimum requirement for PRI membership is the establishment of accountability mechanisms to ensure that responsible investment policies are effectively implemented within the organization. (ESGTextBook[PallasCatFin], Chapter 9, Page 509)
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A company's Scope 2 emissions are:
Correct : A
Scope 2 emissions refer to indirect greenhouse gas emissions resulting from the company's consumption of purchased electricity, steam, heat, and cooling. (ESGTextBook[PallasCatFin], Chapter 3, Page 133)
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A situation in which a company making good strides toward more sustainable practices but is unwilling to reveal as much for fear of retribution or misinterpretation is best described as:
Correct : A
Greenhushing occurs when a company is reluctant to publicly share its sustainability achievements or goals due to fears of backlash or misunderstanding from stakeholders. (ESGTextBook[PallasCatFin], Chapter 7, Page 364)
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Engagement teams with a history of governance-led engagement are most likely to be organized:
Correct : A
Engagement teams focusing on governance issues are often organized by sector because governance practices and challenges can vary significantly across industries, making a sector-based approach more effective. (ESGTextBook[PallasCatFin], Chapter 6, Page 283)
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