ESG-Investing Exam Dumps - Certificate in ESG Investing

Sustainable investing includes integrating ESG factors into strategic asset allocation. This allows managers to align portfolios with long-term sustainability goals while managing ESG risks and opportunities. (ESGTextBook[PallasCatFin], Chapter 8, Page 396)

When a private equity holding demonstrates weak governance, it may lead to lower long-term growth potential and higher risk. This is reflected in a reduced terminal value in the analyst’s valuation model, indicating lower anticipated future cash flows or exit value.ESG Reference: Chapter 7, Page 259 - ESG Analysis, Valuation & Integration in the ESG textbook.

Dual-class share structures favor the founders of a company by granting them superior voting rights, often allowing them to retain control even if they hold a smaller economic interest in the company. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)

Under the EU Taxonomy, companies must ensure that their activities "do no significant harm" to any environmental objective, while aligning with at least one environmental objective. (ESGTextBook[PallasCatFin], Chapter 3, Page 123)

Tobacco companies are commonly excluded from portfolios using universal exclusion criteria, which apply broadly to all companies involved in certain controversial industries. (ESGTextBook[PallasCatFin], Chapter 1, Page 6)

The performance impact of excluding certain sectors (such as tobacco or coal) can be more easily measured by comparing the portfolio's returns to a benchmark, showing the drag or enhancement due to this exclusion. (ESGTextBook[PallasCatFin], Chapter 7, Page 319)

Impact investing is characterized by the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. Investors engaged in impact investing are often willing to accept sub-market financial returns to achieve their social or environmental goals. This differentiates impact investing from social investing, which may focus more on avoiding negative impacts, and sustainable and responsible investing, which seeks to balance financial returns with ESG factors​​.

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Collective engagement can be seen as controversial because it involves multiple investors working together to influence a company, which may raise concerns about coordinated actions and their regulatory implications. However, it is an important tool in addressing significant ESG issues across industries.ESG Reference: Chapter 6, Page 280 - Engagement and Stewardship in the ESG textbook.