Question 1

Which of the following types of ESG bonds provide financing to issuers who commit to future improvements in sustainability outcomes?

Options :

A : Green bonds

B : Sustainability bonds

C : Sustainability-linked bonds

Answer: C

Question 2

According to the Brunel Asset Management Accord, which of the following is least likely a cause for concern when evaluating an asset manager against an ESG investment mandate?

Options :

A : Change in investment style

B : Loss of key personnel in the organization

C : Short term underperformance compared to benchmark

Answer: C

Question 3

Formal corporate governance codes are most likely to:

Options :

A : be found in all major world markets.

B : call for serious consequences for non-compliant organizations.

C : be interpreted by proxy advisory firms when corporate compliance is assessed.

Answer: A

Question 4

Investors seeking to mitigate environmental risks associated with potential investments often conduct environmental due diligence. Within the environmental risk assessment process, which level of analysis offers the highest degree of specificity and granularity?

Options :

A : the country level

B : the company or project level

C : the sector level

Answer: B

Question 5

Free, Prior and Informed Consent (FPIC) aims to ensure meaningful participation and decision-making for certain groups affected by projects or land use decisions. In which of the following cases would FPIC principles be most relevant and applicable?

Options :

A : Developments on ancestral land

B : Intensive livestock farming

C : Replacing the existing workforce with cheap labor

Answer: A