Free CFA Institute ESG-Investing Exam Questions

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

Page: 1 / 134

Total 667 Questions | Updated On: Apr 29, 2026

Add To Cart

Question 1

The Task Force on Climate-related Financial Disclosures (TCFD) recommends measuring carbon exposure on a:

A : per asset basis.

B : per company basis

C : portfolio-weighted basis.

Answer: C

Question 2

An advantage of the carbon footprinting approach to environmental risk analysis is that it allows for:

A : comparisons to global benchmarks.

B : measuring and valuing nature's role in decision-making

C : measuring potential investment risks related to the physical impacts of climate change.

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

Compared to traditional index-based funds, ESG index-based funds typically have:

A : a lower fee structure.

B : the same fee structure.

C : a higher fee structure.

Answer: C

Question 5

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

Page: 1 / 134

Total 667 Questions | Updated On: Apr 29, 2026

Add To Cart