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Question 1

Which of the following statements about manager reporting on ESG integration is most accurate?

Options :

A :

Investment firms that are signatories to the Principles for Responsible Investment (PRI) voluntarily submit an annual report on their activities

B :

Disclosing voting activity alone is not sufficient to satisfy the International Corporate Governance Network (ICGN) requirement for engagement reporting

C :

The more fully integrated ESG becomes into the investment process, the easier it becomes to disaggregate a particular ESG driver from the broader investment decision

Answer: B

Question 2

According to the Stockholm Resilience Centre (2023), which of the following planetary boundaries has already been crossed as a result of human activity?

Options :

A : Freshwater use

B : Ocean acidification

C : Stratospheric ozone depletion

Answer: A

Question 3

Which of the following statements is least accurate? Compared to social and environmental factors, governance has a:

Options :

A : greater link to financial performance.

B : greater consideration in traditional investment analysis.

C : greater materiality for private companies than for public companies.

Answer: C

Question 4

Which of the following are most likely to raise the risks of greenwashing by private equity investors? Investors that integrate ESG factors for the purposes of:

Options :

A : Value creation

B : Risk management

C : Attracting ESG-conscious capital allocators

Answer: C

Question 5

Compared to an optimal portfolio that does not have any ESG restrictions a portfolio that optimizes for multiple ESG factors will most likely experience

Options :

A : lower active risk

B : higher active risk.

C : lower tracking error

Answer: B