Question 1

An investor positively screening for bonds that commit to specific improvements in ESG outcomes is most likely to tilt her portfolio towards:

Options :

A : Transition bonds.

B : Sustainability bonds.

C : Sustainability-linked bonds.

Answer: C

Question 2

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

Options :

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 3

Which of the following is best described as a risk management framework for assessing environmental and social risk in project finance?

Options :

A : The Equator Principles

B : The Helsinki Principles

C : The Net Zero Asset Managers initiative

Answer: A

Question 4

Corporate engagement and shareholder action is the predominant investment strategy in:

Options :

A : Japan

B : Europe

C : the United States

Answer: C

Question 5

Which of the following statements regarding ESG considerations and sovereign debt is most accurate?

Options :

A : There is little correlation between ESG risk and credit ratings

B : ESG integration in sovereign debt is at similar levels to listed equities and corporate debt

C : ESG ratings tend to be structurally lower for emerging countries relative to developed economies

Answer: C

Free Sustainable-Investing Mock Exam – Practice Online Confidently