Biography
ESG-Investing Valid Exam Question - New Guide ESG-Investing Files
People who appear in the test of the Certificate in ESG Investing (ESG-Investing) certification face the issue of not finding up-to-date and real exam dumps. GetValidTest is here to resolve all of your problems with its actual and latest CFA Institute ESG-Investing Questions. You can successfully get prepared for the Certificate in ESG Investing (ESG-Investing) examination in a short time with the aid of these test questions.
CFA Institute ESG-Investing Exam Syllabus Topics:
Topic
Details
Topic 1
- Social Factors: This section focuses on analyzing social factors, including their systemic effects and material impacts. This section also provides methodologies for assessing social risks and opportunities at country, sector, and organizational levels.
Topic 2
- Engagement and Stewardship: This section explores the foundations of investor engagement and stewardship, emphasizing their importance and practical application.
Topic 3
- Investment Mandates and Portfolio Analytics: This domain explains to ESG Analysts the importance of constructing mandates to support effective ESG investment results. This section highlights key aspects, such as transparency and accountability, which are essential for asset owners and intermediaries to align portfolios with ESG priorities.
Topic 4
- Understanding Governance Factors: This section includes governance elements for ESG Investment Consultants, including core characteristics, governance models, and material impacts. It discusses how governance factors influence investment choices.
>> ESG-Investing Valid Exam Question <<
New Guide ESG-Investing Files | ESG-Investing New Braindumps Free
Considering your practical constraint and academic requirements of the ESG-Investing exam preparation, you may choose the ESG-Investing practice materials with following traits. High quality and accuracy with trustworthy reputation; processional experts group specific in this line; considerate after-sales services are having been tested and verified all these years, ESG-Investing training guide is fully applicable to your needs.
CFA Institute Certificate in ESG Investing Sample Questions (Q573-Q578):
NEW QUESTION # 573
To fall in scope of mandatory compliance with the EU's Corporate Sustainability Reporting Directive (CSRD), companies would need to meet which of the following conditions?
Condition 1EUR40 million in net turnover
Condition 2EUR20 million in assets
Condition 3250 or more employees
- A. Any two of these conditions
- B. Any one of these conditions
- C. All three of these conditions
Answer: A
Explanation:
The EU's Corporate Sustainability Reporting Directive (CSRD) mandates that companies need to meet at least two of the following three criteria to fall under its scope of mandatory compliance:
* EUR 40 million in net turnover
* EUR 20 million in assets
* 250 or more employees
This requirement is designed to ensure that significant entities are subject to sustainability reporting, reflecting their potential impact on and responsibility towards environmental, social, and governance (ESG) factors.
References:
* The CSRD directive outlines the scope and criteria for mandatory sustainability reporting within the EU.
NEW QUESTION # 574
Which of the following factors is most relevant to the performance outlook of a military equipment manufacturer?
- A. Offshoring
- B. Gender equality
- C. Artificial intelligence
Answer: C
Explanation:
The factor most relevant to the performance outlook of a military equipment manufacturer is artificial intelligence (AI). AI plays a critical role in the defense sector, influencing product development, operational efficiency, and competitive advantage.
* Technological Advancements: AI is pivotal in developing advanced military technologies such as autonomous vehicles, drones, surveillance systems, and cybersecurity solutions. These advancements can significantly impact the performance and growth prospects of a military equipment manufacturer.
* Operational Efficiency: AI can enhance manufacturing processes, improve supply chain management, and optimize maintenance and logistics. These improvements can lead to cost savings and increased production capabilities.
* Competitive Edge: Incorporating AI into military equipment provides a competitive edge by offering cutting-edge solutions that meet the evolving needs of defense customers. Staying ahead in technological innovation is crucial for maintaining market leadership and securing contracts.
References:
* MSCI ESG Ratings Methodology (2022) - Discusses the impact of technological factors, including AI, on the performance outlook of companies in various sectors, including defense.
* ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the importance of AI in driving innovation and competitiveness in the defense industry.
NEW QUESTION # 575
As policies on ESG issues and financial regulation across countries reach maturity, which of the following is least likely to occur?
- A. Changing from voluntary to mandatory disclosures
- B. Moving from policy to implementation and reporting
- C. Moving away from "comply and explain" regulation to "comply or explain" regulation
Answer: C
Explanation:
As policies on ESG issues and financial regulation across countries reach maturity, the least likely occurrence is moving away from "comply and explain" regulation to "comply or explain" regulation.
Current Trend: The current trend in ESG policies and regulations is toward more stringent requirements, often moving from voluntary to mandatory disclosures (A) and from policy formulation to implementation and reporting (B).
Regulatory Frameworks: "Comply or explain" regulation typically requires companies to either comply with the set regulations or explain why they have not done so. This approach is generally seen as a flexible yet accountable method, encouraging adherence to ESG standards while allowing for some flexibility.
"Comply and Explain" Approach: Moving away from "comply and explain" to "comply or explain" would reduce this flexibility. As regulations mature, the trend is towards ensuring more stringent compliance rather than offering more leniency, making it unlikely that there would be a shift away from the more rigorous "comply or explain" approach.
CFA ESG Investing Reference:
The CFA Institute's discussions on regulatory developments highlight the evolution of ESG regulations towards more accountability and transparency. The trend is towards enhancing compliance mechanisms rather than loosening them.
NEW QUESTION # 576
In which of the following countries does the governance code require at least two independent non-executive directors?
- A. The UK
- B. South Africa
- C. Japan
Answer: C
Explanation:
Japan'sCorporate Governance Code(updated in 2021) requiresat least two independent non-executive directorson corporate boards. This reflects efforts to enhanceboard independence and investor protection, especially in companies withhistorically high insider control.
By contrast,UK and South Africangovernance codesrecommendboard independence but do not mandate a specific number.
References:
* Japan Corporate Governance Code (Financial Services Agency, 2021)
* UK Corporate Governance Code (FRC)
* King IV Report on Corporate Governance (South Africa)
NEW QUESTION # 577
Which of the following statements about voting is most accurate?
- A. Voting is a necessary but not a sufficient element of good stewardship
- B. If there are concerns about the financial viability of a business, investors need to pay close attention to voting decisions on the reappointment of members of the audit committee
- C. Concerns about the diversity of a company's board cannot be reflected in voting decisions
Answer: B
Explanation:
* Importance of Voting in Governance:
* Voting is a critical tool for shareholders to influence corporate governance. It allows them to approve or reject decisions that can impact the company's long-term viability.
* According to the CFA Institute, effective voting practices are a fundamental aspect of good stewardship, ensuring that companies are managed in the best interests of shareholders and other
* stakeholders.
* Role of the Audit Committee:
* The audit committee plays a crucial role in overseeing the integrity of financial reporting, compliance with legal and regulatory requirements, and the effectiveness of internal controls.
* The CFA Institute emphasizes that the audit committee's effectiveness is vital for maintaining investor confidence, particularly in companies with financial viability concerns.
* Investor Attention to Audit Committee Reappointments:
* When there are concerns about a company's financial health, it is essential for investors to scrutinize the reappointment of audit committee members. These members are responsible for ensuring that financial statements are accurate and that there is adequate oversight of the auditing process.
* Investors should consider voting against the reappointment of audit committee members if they believe that these individuals have not adequately fulfilled their responsibilities or if there are significant issues with financial reporting.
* Voting as a Stewardship Tool:
* Voting decisions related to the audit committee can reflect broader concerns about governance practices and financial transparency. By exercising their voting rights, investors can signal their expectations for higher standards and accountability.
* The CFA Institute notes that voting against certain board members or committees can be a powerful way to drive improvements in corporate governance and financial oversight.
References:
* CFA Institute, "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals."
* MSCI ESG Ratings Methodology, which highlights the importance of voting in addressing governance concerns.
NEW QUESTION # 578
......
GetValidTest informs you that the Certificate in ESG Investing (ESG-Investing) questions regularly change the content of the Certificate in ESG Investing real exam. Therefore, you must stay informed as per these changes to save time, money, and mental peace. As was already discussed, GetValidTest satisfies the needs of CFA Institute ESG-Investing Exam candidates. The customer will receive updates of Certificate in ESG Investing (ESG-Investing) real dumps for up to 365 days after buying the product.
New Guide ESG-Investing Files: https://www.getvalidtest.com/ESG-Investing-exam.html
