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: Mar 12, 2026

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Question 1

Which of the following is best described as a risk management framework for assessing environmental and social risk in project finance?

A : The Equator Principles

B : The Helsinki Principles

C : The Net Zero Asset Managers initiative

Answer: A

Question 2

Under the "shades of green" methodology developed by the Center for International Climate Research (CICERO), a bond that funds transition activities that do not lock in emissions is considered:

A : Yellow

B : Light green

C : Medium green

Answer: B

Question 3

Scorecards for ESG analysis are most likely used to translate:

A : Qualitative judgments on material ESG factors into numerical scores.

B : Quantitative judgments on material ESG factors into numerical scores.

C : Qualitative judgments on only the mandatory ESG factors into numerical scores.

Answer: A

Question 4

The size of the discount rate adjustment to account for ESG risks most likely depends on:

A : Company-specific ESG risks.

B : The magnitude of the company’s cash flows.

C : The effectiveness of the company's ESG risk management.

Answer: A

Question 5

With regards to environmental analysis in fixed income investing, a country-level analysis is relevant to:

A : Corporate bonds only

B : Government bonds only

C : Both corporate bonds and government bonds

Answer: C

Page: 1 / 145

Total 721 Questions | Updated On: Mar 12, 2026

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