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: Apr 29, 2026

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Question 1

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 2

Which of the following is a challenge of integrating ESG analysis into investment processes?

A : Cultural challenges and biases within investment management firms

B : Issuer disclosures are standardized across industries without issuer-specific adjustments

C : ESG analysis is objective by nature, which makes it challenging to find investment opportunities

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

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 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

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