ESG-Investing Exam Dumps - Certificate in ESG Investing

Carbon footprinting allows emissions data to be aggregated across geographies, supply chains, and business units,providing a holistic view of carbon impact.

It is typically backward-looking rather than forward-looking (A).

There are multiple carbon accounting methodologies (B), but they are not always standardized.

References:

Greenhouse Gas (GHG) Protocol Carbon Accounting Framework

CFA Institute ESG Carbon Footprint Measurement Guide

UNFCCC Carbon Accounting & Disclosure Standards

========

Thecircular economyfocuses onreducing waste and maximizing resource efficiency.Sustainable resource use (B)aligns directly with circular economy principles, as it promotesrecycling, renewable materials, and closed-loop production systems.

Pollution (A) and climate change (C) are environmental risks but do notdirectlysupport the transition to a circular economy.

References:

Taskforce on Nature-Related Financial Disclosures (TNFD) Framework

Ellen MacArthur Foundation – Circular Economy Principles

UN Sustainable Development Goal 12 (Responsible Consumption & Production)

Stewardship codes emphasizeactive ownership, which includes engaging with companies on ESG issues and escalating actions when necessary. A key principle of many stewardship codes (such as theUK Stewardship Code 2020) is that investors must be willing toact independently of other investorswhen necessary to ensure effective stewardship.

This principle prevents "herding behavior" and ensures that stewardship decisions align withfiduciary dutiesrather than collective pressures.

References:

UK Stewardship Code 2020

CFA Institute Stewardship Principles

Principles for Responsible Investment (PRI)

========

TheInternational Corporate Governance Network (ICGN)requirescomprehensive engagement reporting, which goes beyond justvoting activity. Investors must discloseengagement outcomes, stewardship efforts, and ESG considerations in investment decisions.

PRI signatories (A)must submitmandatoryESG reports, not voluntary ones.

Disaggregating ESG drivers (C)is actuallymore difficult, as ESG factors are deeply interconnected.

References:

ICGN Global Stewardship Principles

Principles for Responsible Investment (PRI) Reporting Framework

UK Stewardship Code 2020

========

Brown divestmentrefers topublicly traded firms selling off polluting assets (e.g., coal mines, oil refineries) to third partiesrather than shutting them down.

Screening out fossil fuels (A) is part of exclusionary ESG investing but does not define brown divestment.

Investing only in positive-impact firms (B) is more aligned with green or impact investing.

References:

Principles for Responsible Investment (PRI) ESG Divestment Strategies

CFA Institute Guide to Carbon-Intensive Asset Divestment

MSCI Research on Brown-to-Green Transition Strategies

========

Biodiversity and habitat lossarethe most difficult environmental factors to quantifybecause they involvecomplex ecological interactions, long-term impacts, and regional variations.

Solid waste (A)andwater pollution (B)haveclearer measurement metrics, such as waste tonnage and pollutant concentrations.

References:

World Bank Environmental Impact Assessment Guidelines

UN Biodiversity & Ecosystem Impact Report

CFA Institute ESG Infrastructure Risk Framework

========

Theclimate change transition(e.g., shift from fossil fuels to renewable energy) often results injob losses, reskilling needs, and economic displacement for workers.

Pollution (A) and water scarcity (B) affect public health but do not directly impact worker employment as much as climate policy shifts.

References:

UNFCCC Just Transition & Labor Market Report

International Labour Organization (ILO) Climate Workforce Report

CFA Institute ESG Social Risks Framework

========

TheKyoto Protocol(adopted in 1997) was the firstinternational treatyto legallycommit industrialized nationstoreduce greenhouse gas emissions. It setbinding targetsfor developed countries but did not impose obligations on developing nations.

Options A and B are incorrect becauseKyoto focused on emission reductionsrather than corporate disclosures or private finance mobilization.

References:

United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol Overview

IPCC Reports on Kyoto and Climate Policy

OECD Climate Governance Analysis

========