Get 2026 Updated Free CFA Institute ESG-Investing Exam Questions & Answer [Q224-Q248]

NEW QUESTION 224
Which of the following is most likely an example of a negative externality?

NEW QUESTION 225
Which of the following statements regarding optimization of portfolios for ESG criteria is most accurate?

NEW QUESTION 226
Regarding ESG issues, which of the following sets the tone for the investment value chain?

NEW QUESTION 227
Philanthropy is most likely associated with:

NEW QUESTION 228
Compared to an optimal portfolio that does not have any ESG restrictions a portfolio that optimizes for multiple ESG factors will most likely experience

NEW QUESTION 229
Which of the following private equity investors is most susceptible to allegations of greenwashing? An investor that views ESG integration as a way of:

NEW QUESTION 230
When using a threshold assessment to integrate governance factors into the investment decision-making process, fund managers most likely focus on the:

NEW QUESTION 231
Which of the following statements regarding ESG screening is most accurate?

NEW QUESTION 232
Globalization has led to a reduction in:

NEW QUESTION 233
Uploading a portfolio to an external ESG data provider’s online platform

NEW QUESTION 234
The process of ESG portfolio optimization requires:

NEW QUESTION 235
Leased assets of a company contribute to:

NEW QUESTION 236
An organization conducts assessments that highlight events, behaviors, and practices that may lead to reputational and business risks and opportunities. This organization is best classified as a provider of:

NEW QUESTION 237
The investor initiative FAIRR focuses on screening out companies

NEW QUESTION 238
With regard to screening, exclusions that are not supported by global consensus are best described as:

NEW QUESTION 239
ESG factors that relate to future growth opportunities are most relevant to:

NEW QUESTION 240
Alignment of an investment manager’s performance against a long-term ESG investor’s objectives is best achieved by which of the following?

NEW QUESTION 241
According to the UK Investor Forum which of the following is a key success factor for effective engagement?

NEW QUESTION 242
Assessing the alignment of local labor laws with International Labour Organization (ILO) principles is an example of social analysis at the:

NEW QUESTION 243
Which of the following is the most important type of diversity in a boardroom?

NEW QUESTION 244
Firms using an engagement style focusing first on individual companies, starting with the chair, and working through the board and down to management most likely have a(n):

NEW QUESTION 245
The key objective of the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises is:

NEW QUESTION 246
The European Union (EU)’s Carbon Border Adjustment Mechanism is best described as a(n):

NEW QUESTION 247
The United Nations Sustainable Development Goals (SDGs) are particularly aimed at

NEW QUESTION 248
Which of the following UK Stewardship Code principles is not addressed in the European Fund and Asset Management Association (EFAMA) Code? The principle that institutional investors should: