Question 1

Which of the following statements about the assessment of ESG risks is most accurate?

Options :

A : Manageable risks that are managed well can be eliminated

B : Management gap refers to risks inherent in the business model

C : Unmanageable risks cannot be addressed by company initiatives

Answer: C

Question 2

Carbon intensity is calculated as Scope 1 plus Scope 2 emissions divided by:

Options :

A : profit

B : revenue

C : market capitalization

Answer: B

Question 3

The trajectories of Uber and WeWork, from their initial public offerings (IPOs) to their subsequent valuations, highlight the potential for Environmental, Social, and Governance (ESG) performance to either enhance or diminish investment value. In these cases, which specific element of ESG analysis played a critical role in shaping investor perceptions of risk and opportunity?

Options :

A : impact analysis

B : governance analysis

C : social analysis

Answer: B

Question 4

An analyst would most likely increase a companys discount rate if the company:

Options :

A : Has strong ESG practices

B : Faces significant environmental litigation

C : Is well-positioned to benefit from ESG opportunities

Answer: B

Question 5

What is the underlying principle of the corporate governance code in most markets?

Options :

A : If not, why not

B : Apply or explain

C : Comply or explain

Answer: C