Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CFA
  5. Sustainable-Investing

CFA Sustainable-Investing Exam
Sustainable Investing Certificate(CFA-SIC) (Page 23 )

Updated On: 9-Feb-2026
Page 23 of 162
PDF with 802 Questions

Which of the following projects are most likely to be financed in the green bond market?

  1. Real estate projects
  2. Manufacturing projects
  3. Communications technology projects

Answer(s): A

Explanation:

In the green bond market, projects that are most likely to be financed include those that have clear environmental benefits. Real estate projects, especially those focusing on energy efficiency, sustainable building practices, and reducing carbon footprints, align well with the objectives of green bonds. These projects can include the development of green buildings, retrofitting existing structures to improve energy efficiency, and incorporating renewable energy sources.



A materiality assessment to identify ESG issues impacting a company's financial performance is most likely measured in terms of:

  1. likelihood only.
  2. magnitude of impact only.
  3. both likelihood and magnitude of impact.

Answer(s): C

Explanation:

A materiality assessment to identify ESG issues impacting a company's financial performance is most effectively measured in terms of both likelihood and magnitude of impact. This approach provides a comprehensive view of potential risks and opportunities by evaluating how likely anissue is to occur and the extent of its potential impact on financial performance. This dual assessment helps in prioritizing ESG issues that are both probable and significant in their effects.



Which of the following is one of the five main drivers of nature change described by the Taskforce on Nature-related Financial Disclosures (TNFD)?

  1. Ecosystem services
  2. Invasive alien species
  3. Transmission channels

Answer(s): B

Explanation:

The Taskforce on Nature-related Financial Disclosures (TNFD) identifies invasive alien species as one of the five main drivers of nature change. These species can significantly disrupt ecosystems, outcompete native species, and lead to biodiversity loss. Understanding and managing the impact of invasive alien species is crucial for maintaining ecosystem health and resilience.



Company reporting and transparency are led by the:

  1. board
  2. auditor
  3. management team

Answer(s): C

Explanation:

Company reporting and transparency are primarily led by the management team. They are responsible for ensuring accurate and comprehensive disclosures, which are then overseen by the audit committee and the board. The management team's role includes preparing reports, implementing internal controls, and ensuring compliance with regulatory requirements. The audit committee and the board provide oversight and ensure that the reports are fair, balanced, and understandable, while the auditor offers independent verification.



In which of the following circumstances is Free, Prior, and Informed Consent (FPIC) most applicable?

  1. Members agreeing to a social media platform's privacy policy
  2. Company constructing a fish farm next to a native waterfront community
  3. Governments passing international standards against forced labor practices

Answer(s): B

Explanation:

Free, Prior, and Informed Consent (FPIC) is most applicable in situations where developments or projects affect indigenous peoples and their lands. For example, if a company plans to construct a fish farm next to a native waterfront community, it must obtain FPIC from the community. This ensures that the community is adequately informed about the project, has the opportunity to voice their concerns, and consents to the project without any coercion.

Top of Form

Bottom of Form






Post your Comments and Discuss CFA Sustainable-Investing exam prep with other Community members:

Join the Sustainable-Investing Discussion