Bloomberg ESG Certification Exam (Latest 2024/
2025 Update) Questions and Verified Answers|
100% Correct| Grade A
Responsible investment - ANSWERThis term indcates ESG factors are taken into
consideration in the investment process, but typically to mitigate risk with a focus
purely on finacial reutrn
Sustainable investment - ANSWERakin to responsible investment, but going beyond
integrating ESG factors in order to limit risk to doing so in order to capture and
enrourage ESG opportunities such as those presented by the transition to a low
carbon economy. Active ownership is actively pursued.
Impact investment - ANSWERSeeks to create positive environmental or social
impacts alongside a financial return.
Socially responsible investment (SRI) - ANSWERPositive or negative screening
strategiesfor moral or ethical reasons.
Ethical investing - ANSWERSubset of SRI, individual or insitutitions own ethical
preferences
Thematic investing - ANSWERStrategy which focus on a trend within ESG or
sustainable investment
Institutional investors typically reflect ESG considerations in three ways - ANSWER1.
Integrating ESG factors
2. Engaging actively
3. Public policy and best practice
Framworks for materiality - ANSWERSASB
Global Reporting initiative (GRI)
IIRC
MSCI
Sustainalytics
United Nations Global Compact (UNGC) - ANSWER10 principles within:
Human Rights
Labour
Environment
Anti-Corruption
Sustainable Development Goals - ANSWERA set of universal goals adopted by 150
UN member states. 17 goals in various areas such as poverty, gender equality and
life below water. Goals needs to be reach before 2030. Totaling 169 sub-goals
,United Nations Framework Convention on Climate Change (UNFCCC) - ANSWERAims
to stabilise greenhouse gas emissions to limit man-made climate change. Paris
Agreement are within UNFCCC
Task Force on Cliamte-related Financial disclosures (TCFD) - ANSWERTakes the Paris
Agreement's two degrees Celcius target and tries to operationalise it for the business
world.
Disclose the following around climate
1. Governance
2. Strategy
3. Risk management
4. Metrics and targets
United Nations Principles for Responsible investment (UN PRI) - ANSWERSix
principles:
1. Incorporate ESG issues into investment analysis
2. Will be active owners
3. Disclose on ESG issues
4. Promote acceptance and implementation of the principles
5. Work together to enhance effectiveness
6. We will each report on our activities and progress torwards implementing the
principles
The international corporate governance network (ICGN) - ANSWERFocus on
governance.
Key guidance developed are:
Global Stewardship Principles
Global Corporate Governance Principles
The Model Mandate
In what sence are ESG considerations non-financial - ANSWERThey are difficult to
value precisely and difficult to time.
How much have PRI signatories growth been per annum since 2006 - ANSWER30%
1.How many signatories were there in april 2018?
2. AUM? - ANSWER1. 1961
2. US$ 82 Trillion
Which strategies have the most AUM on a global scale? - ANSWER1.
Negative/exclusionary screening
2. ESG integration
3. Corporate engagenment and shareholder action
What are Pensions funds' ESG drivers? - ANSWER1. Media and civil society
2. Beneficiaries
, 3. Regulators
Which big case in Holland led to changes in responsible investment in the pension
world? - ANSWERZembla exposed pension funds invested in cluster mines in
Holland.
Model Mandate is what? - ANSWERAn initiative whereby more long-term thinking
could be embedded into investment contracts. (especially important for pensions
schemes)
Which focus do Japans government pension fund focus on? - ANSWERGovernance
Article 173-VI in France focus on what? - ANSWERRequires both fund managers and
asset owners to describe how they incorporate ESG factors into their investment
strategy across all asset classes. Largest firms must also describe how their
investments support energy transistion
EU'sHigh Level Expert Group on Sustainable Finance have 8 recommendations? -
ANSWER1. Introduce a common sustainable finance taxonomy to ensure consitency
and clarity, starting with climate change
2. Clarify investor duties to extend time horizon and bring greater focus on ESG
factors
3. Upgrade disclosure rules on climate change risk.
4. Investment advice, Ecolabel, SRI minimum standards.
5. Sustainable finance strandards on e.g. green bonds
6. Expand the universe of sustainable assets
7. Reform governance and leadership of companies
8. Enlarge role of three european supervisory authorities to promote sustainable
finance.
The walker review led to what? - ANSWERA UK stewardship Code in 2010, following
the financial crisis.
Describe the UK stewardship Code - ANSWERIt sets out stewardship principles that
investment insitutions are expected to comply with or be able to explain any
adherence failures. It has been adopted across the world.
What is the Corporate Governance Code? and which 3 recommendations did it give?
- ANSWERFrom 1992. Code was based on the Cadbury Report, in the wake of the
BCCI and Maxwell Scandals.
1. The CEO and chairman of companies should be seperated
2. boards should have at least three non-executive directors, two of whom should
have no financial or personal ties to executive.
3. Each board should have an audit committee composed of non-executive directors.
What are the 7. challenges to successful ESG investing? - ANSWER1. The availability
of expertise
2025 Update) Questions and Verified Answers|
100% Correct| Grade A
Responsible investment - ANSWERThis term indcates ESG factors are taken into
consideration in the investment process, but typically to mitigate risk with a focus
purely on finacial reutrn
Sustainable investment - ANSWERakin to responsible investment, but going beyond
integrating ESG factors in order to limit risk to doing so in order to capture and
enrourage ESG opportunities such as those presented by the transition to a low
carbon economy. Active ownership is actively pursued.
Impact investment - ANSWERSeeks to create positive environmental or social
impacts alongside a financial return.
Socially responsible investment (SRI) - ANSWERPositive or negative screening
strategiesfor moral or ethical reasons.
Ethical investing - ANSWERSubset of SRI, individual or insitutitions own ethical
preferences
Thematic investing - ANSWERStrategy which focus on a trend within ESG or
sustainable investment
Institutional investors typically reflect ESG considerations in three ways - ANSWER1.
Integrating ESG factors
2. Engaging actively
3. Public policy and best practice
Framworks for materiality - ANSWERSASB
Global Reporting initiative (GRI)
IIRC
MSCI
Sustainalytics
United Nations Global Compact (UNGC) - ANSWER10 principles within:
Human Rights
Labour
Environment
Anti-Corruption
Sustainable Development Goals - ANSWERA set of universal goals adopted by 150
UN member states. 17 goals in various areas such as poverty, gender equality and
life below water. Goals needs to be reach before 2030. Totaling 169 sub-goals
,United Nations Framework Convention on Climate Change (UNFCCC) - ANSWERAims
to stabilise greenhouse gas emissions to limit man-made climate change. Paris
Agreement are within UNFCCC
Task Force on Cliamte-related Financial disclosures (TCFD) - ANSWERTakes the Paris
Agreement's two degrees Celcius target and tries to operationalise it for the business
world.
Disclose the following around climate
1. Governance
2. Strategy
3. Risk management
4. Metrics and targets
United Nations Principles for Responsible investment (UN PRI) - ANSWERSix
principles:
1. Incorporate ESG issues into investment analysis
2. Will be active owners
3. Disclose on ESG issues
4. Promote acceptance and implementation of the principles
5. Work together to enhance effectiveness
6. We will each report on our activities and progress torwards implementing the
principles
The international corporate governance network (ICGN) - ANSWERFocus on
governance.
Key guidance developed are:
Global Stewardship Principles
Global Corporate Governance Principles
The Model Mandate
In what sence are ESG considerations non-financial - ANSWERThey are difficult to
value precisely and difficult to time.
How much have PRI signatories growth been per annum since 2006 - ANSWER30%
1.How many signatories were there in april 2018?
2. AUM? - ANSWER1. 1961
2. US$ 82 Trillion
Which strategies have the most AUM on a global scale? - ANSWER1.
Negative/exclusionary screening
2. ESG integration
3. Corporate engagenment and shareholder action
What are Pensions funds' ESG drivers? - ANSWER1. Media and civil society
2. Beneficiaries
, 3. Regulators
Which big case in Holland led to changes in responsible investment in the pension
world? - ANSWERZembla exposed pension funds invested in cluster mines in
Holland.
Model Mandate is what? - ANSWERAn initiative whereby more long-term thinking
could be embedded into investment contracts. (especially important for pensions
schemes)
Which focus do Japans government pension fund focus on? - ANSWERGovernance
Article 173-VI in France focus on what? - ANSWERRequires both fund managers and
asset owners to describe how they incorporate ESG factors into their investment
strategy across all asset classes. Largest firms must also describe how their
investments support energy transistion
EU'sHigh Level Expert Group on Sustainable Finance have 8 recommendations? -
ANSWER1. Introduce a common sustainable finance taxonomy to ensure consitency
and clarity, starting with climate change
2. Clarify investor duties to extend time horizon and bring greater focus on ESG
factors
3. Upgrade disclosure rules on climate change risk.
4. Investment advice, Ecolabel, SRI minimum standards.
5. Sustainable finance strandards on e.g. green bonds
6. Expand the universe of sustainable assets
7. Reform governance and leadership of companies
8. Enlarge role of three european supervisory authorities to promote sustainable
finance.
The walker review led to what? - ANSWERA UK stewardship Code in 2010, following
the financial crisis.
Describe the UK stewardship Code - ANSWERIt sets out stewardship principles that
investment insitutions are expected to comply with or be able to explain any
adherence failures. It has been adopted across the world.
What is the Corporate Governance Code? and which 3 recommendations did it give?
- ANSWERFrom 1992. Code was based on the Cadbury Report, in the wake of the
BCCI and Maxwell Scandals.
1. The CEO and chairman of companies should be seperated
2. boards should have at least three non-executive directors, two of whom should
have no financial or personal ties to executive.
3. Each board should have an audit committee composed of non-executive directors.
What are the 7. challenges to successful ESG investing? - ANSWER1. The availability
of expertise
