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: Apr 29, 2026

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Question 1

Which of the following statements about green bonds and sustainability-linked bonds (SLBs) is most accurate?

A : A global consensus exists on the types of capital projects that fit in the scope of green bonds

B : Green bonds allow issuers more flexibility in achieving sustainability targets compared to SLBs

C : Issuers of SLBs agree to pay a higher coupon to investors if they fail to achieve a sustainability-linked target

Answer: C

Question 2

Under the UK listing regime, Class 1 transactions:

A : must be approved via shareholder vote.

B : can be completed at management's discretion.

C : require additional disclosures to shareholders but no approval via shareholder vote.

Answer: A

Question 3

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

Question 4

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 5

Which of the three ESG factors is most often taken into consideration by traditional investment analysts?

A : Social

B : Governance

C : Environmental

Answer: B

Page: 1 / 145

Total 721 Questions | Updated On: Apr 29, 2026

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