CESGA EXAM
According to empirical evidence based on surveys of perception of
ESG and performance, since 2017 the perception of ESG and
performance has - ANSWERS-increased
Does PRI monitor the number of signatories and the number of asset
owners? - ANSWERS-Yes
Carbon Disclosure Project - ANSWERS-companies responding to
CDP represent more than 50% of global market cap
How do rating agencies obtain their information? - ANSWERS-public
data, interviews, and controversies (NGOs)
In light of global risks and challenges, corporations need to consider
and incorporate - ANSWERS-double materiality
Sustainalytics ESG Risk Ratings Methodology - ANSWERS-1.
identify company's exposure to material ESG issues
2. examine shares of manageable and unmanageable risks
3. company's performance is evaluated based on policies, programs,
practices, and quantitative measures
4. ESG risk rating is calculated by adding the amount of unmanaged
risk for each ESG issue
,Which is one of the objectives of the alliances in terms of use of ESG
data?
-joint work towards taxonomy of the HLEG in order to have a
common language of sustainable finance
-joint work towards green bond standard of the HLEG in order to
have a common language of sustainable finance
-joint work towards delegated acts of the HLEG in order to have a
common language of sustainable finance - ANSWERS-joint work
towards taxonomy of the HLEG in order to have a common language
of sustainable finance
Drivers for ESG Integration - ANSWERS-investor demand,
regulatory framework, global challenges, public perception, investor
initiatives, data availability, risk & reputation management, changing
fiduciary duties
Motives of Investor Initiatives - ANSWERS-active commitment,
raising public awareness, competitive advantage, gathering of
information and knowledge, prevent regulation
UN Principles for Responsible Investment (UNPRI) - ANSWERS-a
voluntary initiative with a clear focus on the promotion of sustainable
and responsible investment; requires commitment to six principles
and required mandatory annual reporting by signatories
Six Principles of UNPRI - ANSWERS-1. Incorporate ESG issues into
investment analysis and decision-making processes
2. Incorporate ESG issues into ownership policies and practices
, 3. Seek appropriate disclosure on ESG issues by the entities in which
we invest
4. Promote acceptance and implementation of Principles within
investment industry
5. Enhance effectiveness in implementing Principles
6. Report on activities and progress towards implementing Principles
Company Barriers to ESG Integration - ANSWERS-measuring ESG
performance, concerns about underperformance, lack of ESG data,
costs associated with ESG integration, regulations, balancing
investment needs for growth with ESG goals
Investor Barriers to ESG Integration - ANSWERS-lack of
comparability across firms, lack of standards in reporting, costs of
gathering and analyzing ESG data, reliability and materiality of data
EU Action Plan for Sustainable Growth - ANSWERS-an action plan
issued in March 2018 for financing sustainable growth to connect
finance with sustainability, includes ten actions divided into three
categories
Three Categories of EU Action Plan - ANSWERS--reorienting capital
flows towards a more sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
According to empirical evidence based on surveys of perception of
ESG and performance, since 2017 the perception of ESG and
performance has - ANSWERS-increased
Does PRI monitor the number of signatories and the number of asset
owners? - ANSWERS-Yes
Carbon Disclosure Project - ANSWERS-companies responding to
CDP represent more than 50% of global market cap
How do rating agencies obtain their information? - ANSWERS-public
data, interviews, and controversies (NGOs)
In light of global risks and challenges, corporations need to consider
and incorporate - ANSWERS-double materiality
Sustainalytics ESG Risk Ratings Methodology - ANSWERS-1.
identify company's exposure to material ESG issues
2. examine shares of manageable and unmanageable risks
3. company's performance is evaluated based on policies, programs,
practices, and quantitative measures
4. ESG risk rating is calculated by adding the amount of unmanaged
risk for each ESG issue
,Which is one of the objectives of the alliances in terms of use of ESG
data?
-joint work towards taxonomy of the HLEG in order to have a
common language of sustainable finance
-joint work towards green bond standard of the HLEG in order to
have a common language of sustainable finance
-joint work towards delegated acts of the HLEG in order to have a
common language of sustainable finance - ANSWERS-joint work
towards taxonomy of the HLEG in order to have a common language
of sustainable finance
Drivers for ESG Integration - ANSWERS-investor demand,
regulatory framework, global challenges, public perception, investor
initiatives, data availability, risk & reputation management, changing
fiduciary duties
Motives of Investor Initiatives - ANSWERS-active commitment,
raising public awareness, competitive advantage, gathering of
information and knowledge, prevent regulation
UN Principles for Responsible Investment (UNPRI) - ANSWERS-a
voluntary initiative with a clear focus on the promotion of sustainable
and responsible investment; requires commitment to six principles
and required mandatory annual reporting by signatories
Six Principles of UNPRI - ANSWERS-1. Incorporate ESG issues into
investment analysis and decision-making processes
2. Incorporate ESG issues into ownership policies and practices
, 3. Seek appropriate disclosure on ESG issues by the entities in which
we invest
4. Promote acceptance and implementation of Principles within
investment industry
5. Enhance effectiveness in implementing Principles
6. Report on activities and progress towards implementing Principles
Company Barriers to ESG Integration - ANSWERS-measuring ESG
performance, concerns about underperformance, lack of ESG data,
costs associated with ESG integration, regulations, balancing
investment needs for growth with ESG goals
Investor Barriers to ESG Integration - ANSWERS-lack of
comparability across firms, lack of standards in reporting, costs of
gathering and analyzing ESG data, reliability and materiality of data
EU Action Plan for Sustainable Growth - ANSWERS-an action plan
issued in March 2018 for financing sustainable growth to connect
finance with sustainability, includes ten actions divided into three
categories
Three Categories of EU Action Plan - ANSWERS--reorienting capital
flows towards a more sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
