Question 1

ESG factors impacting balance sheet strength rather than growth opportunities are most material to:

Options :

A : Equity investors

B : Sovereign debt investors

C : Corporate bond investors

Answer: C

Question 2

Which of the following is one of the main principles of stewardship codes?

Options :

A : Thoughtfully intelligent voting

B : Avoid considering conflicts of interest regarding stewardship matters

C : Escalation of stewardship activity must include a willingness to act independently of other investors

Answer: C

Question 3

Options :

A : Screens out fossil fuels from portfolios

B : Invests only in companies with a positive environmental impact

C : Involves publicly traded firms exiting polluting businesses by sales to third parties

Answer: C

Question 4

Which issue was most similar in the governance challenges faced by Enron and WeWork?

Options :

A : Auditor lapses

B : Related-party deals

C : Dominance of the chief executive officer (CEO)

Answer: C

Question 5

Which of the following challenges is most likely related to the attribution of returns to ESG factors?

Options :

A : Difficulty to demonstrate the value added by a programme of engagement

B : Difficulty to assess the performance drag that comes from excluding an industrial sector

C : Performance attribution to ESG factors is still in its early stages and may well need further assurance and consistency for it to have real power

Answer: C