CESGA EXAM QUESTIONS AND ANSWERS
LATEST UPDATE 2025/2026
According to empirical evidence based on surveys of perception of ESG and performance,
since 2017 the perception of ESG and performance has
increased
Does PRI monitor the number of signatories and the number of asset owners?
Yes
Carbon Disclosure Project
companies responding to CDP represent more than 50% of global market cap
How do rating agencies obtain their information?
public data, interviews, and controversies (NGOs)
In light of global risks and challenges, corporations need to consider and incorporate
double materiality
Sustainalytics ESG Risk Ratings Methodology
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
joint work towards taxonomy of the HLEG in order to have a common language of sustainable
finance
Drivers for ESG Integration
investor demand, regulatory framework, global challenges, public perception, investor initiatives,
data availability, risk & reputation management, changing fiduciary duties
Motives of Investor Initiatives
active commitment, raising public awareness, competitive advantage, gathering of information
and knowledge, prevent regulation
UN Principles for Responsible Investment (UNPRI)
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
, 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
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
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
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
-reorienting capital flows towards a more sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
Regulation
LATEST UPDATE 2025/2026
According to empirical evidence based on surveys of perception of ESG and performance,
since 2017 the perception of ESG and performance has
increased
Does PRI monitor the number of signatories and the number of asset owners?
Yes
Carbon Disclosure Project
companies responding to CDP represent more than 50% of global market cap
How do rating agencies obtain their information?
public data, interviews, and controversies (NGOs)
In light of global risks and challenges, corporations need to consider and incorporate
double materiality
Sustainalytics ESG Risk Ratings Methodology
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
joint work towards taxonomy of the HLEG in order to have a common language of sustainable
finance
Drivers for ESG Integration
investor demand, regulatory framework, global challenges, public perception, investor initiatives,
data availability, risk & reputation management, changing fiduciary duties
Motives of Investor Initiatives
active commitment, raising public awareness, competitive advantage, gathering of information
and knowledge, prevent regulation
UN Principles for Responsible Investment (UNPRI)
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
, 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
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
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
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
-reorienting capital flows towards a more sustainable economy
-mainstreaming sustainability into risk management
-fostering transparency and long-termism
Regulation
