CFA ESG Certification Exam
CFA ESG CERTIFICATION EXAM NEWEST 2025/2026 COMPLETE
ALL 300 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
According to Oxfam, "reports show that the richest 1% in the world have more
than double the wealth of 6.9 billion people." Which megatrend does this refer
to?
a) Emerging and urban
b) Technological disruption
c) Demographic changes and wealth inequality
d) Climate change and resource scarcity - ANSWER-c
What is the most probable reason why an investor would engage with policy
makers on ESG?
a) The consideration of ESG related matters can contribute to the proper
functioning of the financial markets
b) Asset owners need regulators to level the playing field in order to be able to
increase their percentage of ESG investments
c) Policy consultations on ESG investing are mandatory in order to ensure that all
perspectives are taken into consideration
d) ESG investors require a sound and stable financial system in order to make
alpha from ESG megatrends - ANSWER-a
Which regions manage the highest proportion of sustainable and responsible
investing assets?
1|Page
, CFA ESG Certification Exam
a) Asia and North America
b) Australia and USA
c) USA and Europe
d) Asia and Europe - ANSWER-c
What is the largest sustainable investment strategy globally?
a) Impact investing
b) Best in class
c) ESG integration
d) Negative screening - ANSWER-d
The largest and second largest asset classes, which implement responsible
investment, are respectively...
a) public equities and fixed income
b) passive equities and active equities
c) fixed income and infrastructure
d) hedge funds and commodities - ANSWER-a
Why are investment mandates important for ESG investing?
a) They define the expectations of asset owners who are signatories of the PRI
b) They are contracts which define the requirements of the asset manager with
regards to ESG
c) They require asset managers to report on the ESG rating of their funds
d) They have limited implementation of stewardship - ANSWER-b
2|Page
, CFA ESG Certification Exam
Which of the following is NOT an outcome of short-termism?
a) Disproportionate focus on quarterly returns
b) Companies are more willing to take on projects, such as research and
development
c) 'Patient capital' is less likely to develop
d) Less investment in long term assets, such as infrastructure - ANSWER-b
How are pension fund members most likely to influence responsible investment?
a) Their formal investment advice to pension fund executives must be
implemented
b) They monitor company controversy through social media and inform asset
managers
c) They act in the interest of sustainable companies
d) Their ethical preferences may be taken into account - ANSWER-d
Which of the following is NOT among the challenges limiting the development of
ESG investing?
a) Lack of regulation and voluntary initiatives
b) The availability of expertise and skilled individuals
c) The quality of data, research, and analysis
d) Limited tools to assist with portfolio construction and management - ANSWER-a
3|Page
, CFA ESG Certification Exam
In what ways can an investment consultant be a barrier to the growth of the ESG
investing market?
a) By not considering ESG characteristics of the funds in their screening
b) By setting poor standards for ESG fund labels
c) By short-listing only ESG funds
d) By helping trustees understand their fiduciary duties - ANSWER-a
What is the main challenge with policies that are 'comply or explain' regarding
ESG?
a) It is the sole indication that the policy has not reached maturity
b) It leads to investors challenging the assertion that ESG integration is a
requirement
c) It allows investors to explain all kinds of behavior away
d) It completely excuses investors from reporting on ESG practices - ANSWER-b
What is the highest risk to the industry regarding greenwashing?
a) The overestimate of the ESG investing market
b) The disappointment of clients with quarterly financial returns
c) The negative impact on the industry's credibility
d) The increased challenge to standardization - ANSWER-c
Why is ESG investing a concern for investors who are cautious of high tracking
error?
4|Page
CFA ESG CERTIFICATION EXAM NEWEST 2025/2026 COMPLETE
ALL 300 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
According to Oxfam, "reports show that the richest 1% in the world have more
than double the wealth of 6.9 billion people." Which megatrend does this refer
to?
a) Emerging and urban
b) Technological disruption
c) Demographic changes and wealth inequality
d) Climate change and resource scarcity - ANSWER-c
What is the most probable reason why an investor would engage with policy
makers on ESG?
a) The consideration of ESG related matters can contribute to the proper
functioning of the financial markets
b) Asset owners need regulators to level the playing field in order to be able to
increase their percentage of ESG investments
c) Policy consultations on ESG investing are mandatory in order to ensure that all
perspectives are taken into consideration
d) ESG investors require a sound and stable financial system in order to make
alpha from ESG megatrends - ANSWER-a
Which regions manage the highest proportion of sustainable and responsible
investing assets?
1|Page
, CFA ESG Certification Exam
a) Asia and North America
b) Australia and USA
c) USA and Europe
d) Asia and Europe - ANSWER-c
What is the largest sustainable investment strategy globally?
a) Impact investing
b) Best in class
c) ESG integration
d) Negative screening - ANSWER-d
The largest and second largest asset classes, which implement responsible
investment, are respectively...
a) public equities and fixed income
b) passive equities and active equities
c) fixed income and infrastructure
d) hedge funds and commodities - ANSWER-a
Why are investment mandates important for ESG investing?
a) They define the expectations of asset owners who are signatories of the PRI
b) They are contracts which define the requirements of the asset manager with
regards to ESG
c) They require asset managers to report on the ESG rating of their funds
d) They have limited implementation of stewardship - ANSWER-b
2|Page
, CFA ESG Certification Exam
Which of the following is NOT an outcome of short-termism?
a) Disproportionate focus on quarterly returns
b) Companies are more willing to take on projects, such as research and
development
c) 'Patient capital' is less likely to develop
d) Less investment in long term assets, such as infrastructure - ANSWER-b
How are pension fund members most likely to influence responsible investment?
a) Their formal investment advice to pension fund executives must be
implemented
b) They monitor company controversy through social media and inform asset
managers
c) They act in the interest of sustainable companies
d) Their ethical preferences may be taken into account - ANSWER-d
Which of the following is NOT among the challenges limiting the development of
ESG investing?
a) Lack of regulation and voluntary initiatives
b) The availability of expertise and skilled individuals
c) The quality of data, research, and analysis
d) Limited tools to assist with portfolio construction and management - ANSWER-a
3|Page
, CFA ESG Certification Exam
In what ways can an investment consultant be a barrier to the growth of the ESG
investing market?
a) By not considering ESG characteristics of the funds in their screening
b) By setting poor standards for ESG fund labels
c) By short-listing only ESG funds
d) By helping trustees understand their fiduciary duties - ANSWER-a
What is the main challenge with policies that are 'comply or explain' regarding
ESG?
a) It is the sole indication that the policy has not reached maturity
b) It leads to investors challenging the assertion that ESG integration is a
requirement
c) It allows investors to explain all kinds of behavior away
d) It completely excuses investors from reporting on ESG practices - ANSWER-b
What is the highest risk to the industry regarding greenwashing?
a) The overestimate of the ESG investing market
b) The disappointment of clients with quarterly financial returns
c) The negative impact on the industry's credibility
d) The increased challenge to standardization - ANSWER-c
Why is ESG investing a concern for investors who are cautious of high tracking
error?
4|Page
