Free CFA Institute ESG-Investing Exam Questions

Become CFA Institute Certified with updated ESG-Investing exam questions and correct answers

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Total 667 Questions | Updated On: Mar 11, 2026

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Question 1

The key objective of the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises is:

A : Remedying business-related human rights abuses

B : Minimizing the impact of social factors on investments

C : Requiring investors to take responsibility for the adverse impacts their investments have on society

Answer: A

Question 2

With respect to ESG integration in private equity, which of the following is most likely a challenge an investor may face?

A : Lack of strategy and long-term orientation from private equity managers

B : Lack of capacity within the investee company to fulfill ESG reporting requirements

C : Reporting frameworks that do not account for the relative lack of transparency found in private markets relative to public markets

Answer: B

Question 3

The potential impacts of climate risk on asset allocation strategies are:

A : local but not systemic.

B : systemic but not local.

C : both local and systemic.

Answer: C

Question 4

Which of the following strategies is most consistent with an investment mandate focusing on risk management?

A : Monitoring company managers

B : Tilt the portfolio towards desired ESG factors

C : Exclude certain companies with respect to ESG factors

Answer: C

Question 5

Companies subject to the EU Taxonomy are required to:

A : do no significant harm to any of the environmental objectives.

B : contribute substantially to at least two of the environmental objectives.

C : comply with the highest standards of social and governance safeguards.

Answer: A

Page: 1 / 134

Total 667 Questions | Updated On: Mar 11, 2026

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