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: Sep 11, 2025

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Question 1

When an external auditors performance materiality level is 60% of its overall materiality threshold, the auditor most likely:

A : Has a low level of confidence in the company's financial controls

B : Will apply tailored audit procedures for the smallest 40% of the company's segments

C : Uses a sample that covers 60% of the total number of the company's transactions during the financial year

Answer: A

Question 2

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

Question 3

An analyst would most likely increase a companys discount rate if the company:

A : Has strong ESG practices

B : Faces significant environmental litigation

C : Is well-positioned to benefit from ESG opportunities

Answer: B

Question 4

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 5

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

Page: 1 / 134

Total 667 Questions | Updated On: Sep 11, 2025

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