Conceptual Actual Exam Questions With
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1. Which statement is correct? Globally, the relative Google search volume of
"ESG" in the finance context experienced a:
1.- sharp decline.
2.- steady decline.
3.- fivefold increase in the last 10 years.
4.- tenfold increase in the last 5 years. - ANSWER 4.- tenfold increase in the
last 5 years.
2. Considering the period between 2013 and 2017, which of the following ESG
strategies was the leading one in Europe?
1.- Exclusions
2.- Impact Investing
3.- Best-in-Class
4.- ESG Integration - ANSWER 1.- Exclusions
3. According to the World Economic Forum (2011), long term investing refers to:
1.- investing with the expectation of holding an asset for 5 years.
2.- investing with the expectation of holding an asset for 10 years.
,3.- investing with the expectation of holding an asset for more than 10 years.
4.- investing with the expectation of holding an asset for an indefinite period of
time by an investor with the capability to do so. - ANSWER 4.- investing with
the expectation of holding an asset for an indefinite period of time by an investor
with the capability to do so.
4. The term "engagement(s)" refers to:
1.- all interactions between an investor and investees or policy makers to address
ESG issues or business strategy.
2.- the investor's practice to actively exert the voting rights at the annual general
meetings (AGM) of the companies
.3.- the practice of taking environmental, social and corporate governance aspects
into account throughout the investment decision-making process.
4.- the selection of companies with the best environmental, social and governance
practices. - ANSWER *1.- all interactions between an investor and investees or
policy makers to address ESG issues or business strategy.
5. Which answer is MORE correct..: Mainstreaming does define the trend toward
...
1.- Integration of environmental aspects in traditional investment process.
2.- Integration of environmental and company profitability aspects in traditional
investment process.
3.- Integration of social and environmental aspects in traditional investment
process.
4.- Integration of all sustainability aspects in traditional investment process. -
ANSWER * 4.- Integration of all sustainability aspects in traditional investment
process.
, 6. There are several main motives for investors joining initiatives in the
sustainability area. Which of the following is NOT one of them?
1.- Complying with the Integrated Reporting initiative
2.- Active commitment
3.- Public awareness raising
4.- Competitive advantage - ANSWER 1.- Complying with the Integrated
Reporting initiative
7. Which statement is NOT correct? Corporate disclosure guidelines:
1.- help investors access data on ESG risk and opportunities.
2.- are always purely voluntary in nature.
3.- can be issued by governments or non-governmental authorities.
4.- can build on general principles or specific indicators. - ANSWER 2.- are
always purely voluntary in nature.
8. Which statement is correct?
1.- The speed of ESG integration is low, as comprehensive commitment of
investors is lacking.
2.- The speed of ESG integration is low, as high-level commitment of policy makers
is lacking.
3.- The speed of ESG integration is high, due to the comprehensive and high-level
commitment of investors and policy makers.
4.- The speed of ESG integration is low, despite the comprehensive and high-level
commitment of investors and policy makers. - ANSWER * 4.- The speed of ESG
, integration is low, despite the comprehensive and high-level commitment of
investors and policy makers.
10. In March 2018, the European Commission adopted the action plan on
sustainable finance. Which action of the following four is NOT part of the action
plan?
1.- Establishing an EU classification system for sustainable activities.
2.- Creating standards and labels for green financial products.
3.- Incorporating sustainability when providing financial advice. 4.- Fostering
sustainable corporate governance and attenuating long-termism in capital
markets. - ANSWER 4.- Fostering sustainable corporate governance and
attenuating long-termism in capital markets.
11. According to the 2015 meta-study on ESG and financial performance:
1.- 90% of the more than 2000 studies displayed a negative ESG-CFP relationship.
2.- 90% of the more than 2000 studies displayed a neutral ESG-CFP relationship.
3.- 90% of the more than 2000 studies displayed a positive ESG-CFP relationship.
4.- 90% of the more than 2000 studies displayed a positive or neutral ESG-CFP
relationship. - ANSWER * 4.- 90% of the more than 2000 studies displayed a
positive or neutral ESG-CFP relationship.
12. Which of the following comments are NOT true?
1. Asset allocations are quite homogenous across different countries within
Europe.
2. The share of equities in asset allocation is much higher in the UK than in France.