Free ESG-Investing Exam Braindumps (page: 41)

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Mass migration from developing countries to developed countries are most likely caused by:

  1. desertification only.
  2. scarcity of fresh water only.
  3. both desertification and scarcity of fresh water.

Answer(s): C

Explanation:

Mass migration from developing countries to developed countries is most likely caused by both desertification and scarcity of fresh water. These environmental factors severely impact livelihoods and living conditions, pushing people to migrate in search of better opportunities and stability. Climate change exacerbates these issues, leading to increased migration flows.



Under the UK listing regime, Class 1 transactions:

  1. must be approved via shareholder vote.
  2. can be completed at management's discretion.
  3. require additional disclosures to shareholders but no approval via shareholder vote.

Answer(s): A

Explanation:

Under the UK listing regime, Class 1 transactions must be approved via a shareholder vote. These transactions significantly affect a company's assets, profits, or capital, exceeding a 25% threshold, and therefore require detailed justifications and approval from shareholders to ensure transparency and protect shareholder interests.



Information for use in ESG tools can be collected directly via:

  1. news articles.
  2. third-party reports.
  3. company communications.

Answer(s): C

Explanation:

Information for use in ESG tools can be collected directly via company communications. This includes sustainability reports, financial disclosures, press releases, and other direct communications from the company. Such sources provide primary data that are essential for accurate ESG analysis and assessment.

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Corporate disclosures in line with the recommendations of the Corporate Sustainability Reporting Directive (CSRD) are a regulatory requirement for companies in:

  1. the EU only
  2. the UK only
  3. both the EU and the UK

Answer(s): A

Explanation:

The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) directive that mandates enhanced and standardized sustainability reporting for companies. It aims to improve the quality and consistency of sustainability information disclosed by companies, which is essential for investors and other stakeholders to make informed decisions.

1. EU Regulatory Requirement: The CSRD is a regulatory requirement specifically for companies within the EU. It expands upon the previous Non-Financial Reporting Directive (NFRD) by requiring more detailed and comprehensive disclosures on sustainability matters, including environmental, social, and governance (ESG) factors.

2. Scope and Applicability: The CSRD applies to a wide range of companies within the EU, including large companies, listed companies, and certain small and medium-sized enterprises (SMEs). It does not extend to the UK, which has its own regulatory framework for corporate sustainability reporting following Brexit.

Reference from CFA ESG Investing:

CSRD Overview: The CFA Institute outlines the scope and requirements of the CSRD, emphasizing its role in enhancing corporate sustainability disclosures within the EU.

EU vs. UK Regulations: The distinction between EU and UK regulations is crucial, as post-Brexit, the UK follows different guidelines for corporate sustainability reporting.

In conclusion, corporate disclosures in line with the recommendations of the CSRD are a regulatory requirement for companies in the EU only, making option A the verified answer.






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