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 reporting practices by an investee company is most likely a red flag for an investor?

A : Limited disclosure of ESG information due to cost constraints in reporting.

B : Non-disclosure of ESG data which management deems commercially sensitive.

C : Non-disclosure of detailed information regarding the basis of long-term incentive plans for a new chief executive officer (CEO).

Answer: B

Question 2

A company reduces water usage and increases usage of more expensive resources after regulations become more stringent. This most likely impacts:

A : revenues

B : provisions

C : operating expenditure

Answer: C

Question 3

Which of the following social factor scenarios is most likely to affect revenue forecasting?

A : Consumer boycotts related to controversial sourcing

B : Fines related to occupational health and safety failures

C : High employee turnover related to poor human capital management

Answer: A

Question 4

Which of the following statements about manager reporting on ESG integration is most accurate?

A : Investment firms that are signatories to the Principles for Responsible Investment (PRI) voluntarily submit an annual report on their activities

B : Disclosing voting activity alone is not sufficient to satisfy the International Corporate Governance Network (ICGN) requirement for engagement reporting

C : The more fully integrated ESG becomes into the investment process, the easier it becomes to disaggregate a particular ESG driver from the broader investment decision

Answer: B

Question 5

According to the Stockholm Resilience Centre (2023), which of the following planetary boundaries has already been crossed as a result of human activity?

A : Freshwater use

B : Ocean acidification

C : Stratospheric ozone depletion

Answer: A

Page: 1 / 145

Total 721 Questions | Updated On: Mar 12, 2026

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