Question 1

With regard to screening, exclusionary preferences are usually adopted by:

Options :

A : asset owners.

B : asset managers.

C : sell#side practitioners.

Answer: A

Question 2

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 3

Which of the following is an example of competence greenwashing?

Options :

A : A company's board overstating their ESG expertise

B : A company that is unwilling to reveal its strides toward more sustainable practices for fear of misinterpretation

C : A company providing an incomplete picture of its environmental impact by overemphasizing carbon emissions while ignoring other factors such as toxicity

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

The rules that can be used to construct ESG exchange-traded funds (ETFs) include:

Options :

A : Thematic investing, only

B : Tilting weightings based on ESG scores, only

C : Both thematic investing and tilting weightings based on ESG scores

Answer: C