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CFA ESG Certification Exam Newest
2025/2026 Complete All 150 Questions And
Correct Detailed Answers (Verified Answers)
|Already Graded A+||Brand New Version!!
What is ESG investing?
a) an approach to managing companies that explicitly
acknowledges the relevance of environmental, social, and
governance factors in corporate decision making
b) an approach to managing companies that explicitly
acknowledges the relevance of environmental, social, and
economic factors in investment decision making
c) an approach to managing assets where investors
explicitly acknowledge the relevance of environmental,
social, and governance factors in their investment
decisions
d) an approach to managing assets where investors
explicitly acknowledge the relevance of environmental,
social, and economic factors in corporate engagement - . .
ANSWER ✔ ✔c
Which of the following is not an example of a social factor?
a) Labor rights
,2|Page
b) Local communities
c) Product safety
d) Biodiversity - . . ANSWER ✔ ✔d
In what sense are ESG considerations non-financial?
a) They are difficult to value precisely and difficult to time
b) They are issues that will never turn into financials
c) They sit in a different category of performance
d) They can only every be measured qualitatively - . .
ANSWER ✔ ✔a
For which of the following sectors will the management of
greenhouse gas emissions be most material?
a) Software
b) Recruitment
c) Power generation
d) Fund management - . . ANSWER ✔ ✔c
Which of the following is not a typical method by which
ESG is reflected in investment approaches?
a) Integrating ESG into investment decision making
b) Engaging actively with companies on ESG matters
,3|Page
c) Engaging in public policy debates on ESG issues
d) Disclosing the investor's corporate social responsibility
activities - . . ANSWER ✔ ✔d
Which of the following is not a form of ESG investment?
a) Valuation investment
b) Ethical investment
c) Thematic investment
d) Impact investment - . . ANSWER ✔ ✔a
What are the four broad groupings of issues covered by the
UN Global Compact?
a) Environmental, social, governance, and impact
b) Human rights, labor, environment, and anti corruption
c) Poverty, diversity, sustainability, and transparency
d) Education, development, fairness, independence - . .
ANSWER ✔ ✔b
What is not one of the three P's in the triple bottom line
concept?
a) People
b) Planet
, 4|Page
c) Profit
d) Principle - . . ANSWER ✔ ✔d
Which of the following statements is true about best-in-
class investments?
a) It involves selecting only the companies that overcome a
defined ranking hurdle
b) It cannot be used to maintain key characteristics, such
as regional and sectoral diversification of an index
c) It refers to selecting companies that fall under a
sustainability-related theme
d) It refers to allocating capital to assets that best mitigate
climate change - . . ANSWER ✔ ✔a
Which of the following sectors is NOT typically excluded
by ethical and faith-based investors?
a) Tobacco
b) Alcohol
c) Controversial weapons
d) Technology - . . ANSWER ✔ ✔d
The efficiency of shareholder engagement does NOT
depend on...
CFA ESG Certification Exam Newest
2025/2026 Complete All 150 Questions And
Correct Detailed Answers (Verified Answers)
|Already Graded A+||Brand New Version!!
What is ESG investing?
a) an approach to managing companies that explicitly
acknowledges the relevance of environmental, social, and
governance factors in corporate decision making
b) an approach to managing companies that explicitly
acknowledges the relevance of environmental, social, and
economic factors in investment decision making
c) an approach to managing assets where investors
explicitly acknowledge the relevance of environmental,
social, and governance factors in their investment
decisions
d) an approach to managing assets where investors
explicitly acknowledge the relevance of environmental,
social, and economic factors in corporate engagement - . .
ANSWER ✔ ✔c
Which of the following is not an example of a social factor?
a) Labor rights
,2|Page
b) Local communities
c) Product safety
d) Biodiversity - . . ANSWER ✔ ✔d
In what sense are ESG considerations non-financial?
a) They are difficult to value precisely and difficult to time
b) They are issues that will never turn into financials
c) They sit in a different category of performance
d) They can only every be measured qualitatively - . .
ANSWER ✔ ✔a
For which of the following sectors will the management of
greenhouse gas emissions be most material?
a) Software
b) Recruitment
c) Power generation
d) Fund management - . . ANSWER ✔ ✔c
Which of the following is not a typical method by which
ESG is reflected in investment approaches?
a) Integrating ESG into investment decision making
b) Engaging actively with companies on ESG matters
,3|Page
c) Engaging in public policy debates on ESG issues
d) Disclosing the investor's corporate social responsibility
activities - . . ANSWER ✔ ✔d
Which of the following is not a form of ESG investment?
a) Valuation investment
b) Ethical investment
c) Thematic investment
d) Impact investment - . . ANSWER ✔ ✔a
What are the four broad groupings of issues covered by the
UN Global Compact?
a) Environmental, social, governance, and impact
b) Human rights, labor, environment, and anti corruption
c) Poverty, diversity, sustainability, and transparency
d) Education, development, fairness, independence - . .
ANSWER ✔ ✔b
What is not one of the three P's in the triple bottom line
concept?
a) People
b) Planet
, 4|Page
c) Profit
d) Principle - . . ANSWER ✔ ✔d
Which of the following statements is true about best-in-
class investments?
a) It involves selecting only the companies that overcome a
defined ranking hurdle
b) It cannot be used to maintain key characteristics, such
as regional and sectoral diversification of an index
c) It refers to selecting companies that fall under a
sustainability-related theme
d) It refers to allocating capital to assets that best mitigate
climate change - . . ANSWER ✔ ✔a
Which of the following sectors is NOT typically excluded
by ethical and faith-based investors?
a) Tobacco
b) Alcohol
c) Controversial weapons
d) Technology - . . ANSWER ✔ ✔d
The efficiency of shareholder engagement does NOT
depend on...
