Free CFA Institute Sustainable-Investing Exam Questions

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

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Total 721 Questions | Updated On: Jan 29, 2026

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Question 1

When constructing net zero portfolios, investors:

A : Can follow a clearly accepted standard for netting exposures to carbon risk

B : Typically agree on how to best account for the role that derivatives and shorts play

C : Will tend to have overweight equity allocations in the technology sector if they exclude Scope 3 emissions

Answer: C

Question 2

Which of the following ESG investment approaches would most appropriately be used to construct a balanced and diversified portfolio?

A : Thematic investing

B : Screening on a relative basis

C : Screening on an absolute basis

Answer: B

Question 3

Weighted-average carbon intensity and attributed emissions of sovereign debt most likely measure ESG exposures at the:

A : country level.

B : security level.

C : portfolio level.

Answer: C

Question 4

The Integrated Biodiversity Assessment Tool (IBAT) is best described as an interactive mapping tool allowing decision makers to:

A : assess companies’ preparedness for biodiversity risk

B : manage biodiversity and social risk in project finance

C : identify biodiversity risks and opportunities within a project boundary

Answer: C

Question 5

Which of the following data are most likely the easiest to optimize in a portfolio?

A : Social

B : Governance

C : Environmental

Answer: B

Page: 1 / 145

Total 721 Questions | Updated On: Jan 29, 2026

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