Question 1

Which of the following statements about quantitative ESG analysis is most accurate?

Options :

A : Quantitative ESG analysis is only based on third-party data

B : The length of the timeseries for ESG data is shorter than for financial data

C : Application programming interfaces (APIs) are used to bring structure to the ESG dataset

Answer: B

Question 2

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

Options :

A : Japan

B : Europe

C : the United States

Answer: C

Question 3

The size of the discount rate adjustment to account for ESG risks most likely depends on:

Options :

A : Company-specific ESG risks.

B : The magnitude of the company’s cash flows.

C : The effectiveness of the company's ESG risk management.

Answer: A

Question 4

A concept that attempts to describe what would happen to global temperatures if CO# concentrations in the atmosphere were to double relative to the pre-industrial average is best described as:

Options :

A : climate change.

B : climate sensitivity.

C : transient climate response.

Answer: B

Question 5

A challenge to quantitative approaches to ESG integration is that:

Options :

A : research from third-party data providers is relatively unsophisticated.

B : most available data is from third-party research and is undifferentiated.

C : ESG factors are correlated with existing factors such as value and momentum.

Answer: C

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