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: Jul 29, 2025

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Question 1

Flooding, droughts, and storms are examples of severe weather events arising from:

A : Physical risk only

B : Transition risk only

C : Both physical risk and transition risk

Answer: A

Question 2

With respect to ESG reporting by investment managers, the 2020 version of the UK Stewardship Code calls for more reporting on the:

A : outcomes from ESG activity

B : policies and activities of signatories.

C : assertions of investment managers on ESG themes.

Answer: A

Question 3

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 4

Determining which ESG issues are material:

A : involves judgment.

B : excludes impacts on short-term financial performance

C : is a process that is independent of a companys industry and business model.

Answer: A

Question 5

The rules that can be used to construct ESG exchange-traded funds (ETFs) include:

A : Thematic investing, only

B : Tilting weightings based on ESG scores, only

C : Both thematic investing and tilting weightings based on ESG scores

Answer: C

Page: 1 / 134

Total 667 Questions | Updated On: Jul 29, 2025

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