2026 85 Questions and 100% Verified Correct
Answers Guaranteed A+
According to empirical evidence based on surveys of perception of ESG and
performance, since 2017 the perception of ESG and performance has -CORRECT
ANSWER: increased
Best in Class -CORRECT ANSWER: selection of companies with the best
environmental, social, and governance practices
-mainly active equity strategies
-bias towards large-cap companies
-increasingly used in fixed income strategies
Carbon Disclosure Project -CORRECT ANSWER: companies responding to CDP
represent more than 50% of global market cap
Climate Delegated Act -CORRECT ANSWER: technical screening criteria for the first
two objectives about climate change
Climate Stress Test Results on Banks -CORRECT ANSWER: -transition and physical
risk have a material impact on the risk profile
-banks have made considerable progress with their climate stress-testing capabilities
Commodities -CORRECT ANSWER: -most used technique is the exclusion of the most
controversial groups of commodities, but it contradicts the diversification effects of
commodities
, -challenge: differentiation within any commodity category is either not possible or
difficult
Company Barriers to ESG Integration -CORRECT ANSWER: measuring ESG
performance, concerns about underperformance, lack of ESG data, costs associated
with ESG integration, regulations, balancing investment needs for growth with ESG
goals
Compliance Carbon Markets -CORRECT ANSWER: mandatory regime with legally
binding emissions reduction targets set by governments for firms
Corporate Bonds -CORRECT ANSWER: -the shorter the maturity, the less relevant the
long-term ESG considerations are
-ESG integration less widespread than equity but have grown significantly
Corporate Social Responsibility -CORRECT ANSWER: the responsibility of enterprises
for their impacts on society
Corporate Sustainability Due Diligence Directive (CSDDD) -CORRECT ANSWER:
requires companies to ensure human rights and environmental protection throughout
their global value chains
Corporate Sustainability Reporting Directive (CSRD) -CORRECT ANSWER: a
sustainability reporting direct that replaced the NFRD in 2022; builds on the NFRD with
more detailed reporting requirements and a certification requirement
CSRD Changes -CORRECT ANSWER: -short, medium, and long-term assessments
-reaffirms the double materiality approach
-companies must report based on the ESRS
-audit requirement