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Sustainable Investing Certificate(CFA-SIC) Questions 356–360 (page: 73)

Updated On: 10-Feb-2026

According to market reviews conducted by the Global Sustainable Investment Alliance at the start of

2020, sustainable investing assets in the five major markets stood at approximately:

  1. USD 20 trillion.
  2. USD 35 trillion.
  3. USD 60 trillion.

Answer(s): B

Explanation:

As of early 2020, the Global Sustainable Investment Alliance reported that sustainable investing assets reached around USD 35 trillion, highlighting the growing adoption of ESG principles across global markets. (ESGTextBook[PallasCatFin], Chapter 2, Page 58)



Which of the following is a for-profit provider offering multiple ESG-related products and services?

  1. CDP
  2. UNEP
  3. FactSet

Answer(s): C

Explanation:

FactSet is a for-profit data provider that offers a wide range of ESG-related products and services, helping investors integrate ESG data into their decision-making processes.
(ESGTextBook[PallasCatFin], Chapter 9, Page 518)



Which of the following pension fund actors are most likely exposed to fiduciary legal risks from financial losses caused by climate change?

  1. Trustees
  2. Members
  3. Executives

Answer(s): A

Explanation:

Trustees of pension funds hold a fiduciary duty to manage assets responsibly, making them vulnerable to legal risks if they fail to account for financial losses related to climate change.
(ESGTextBook[PallasCatFin], Chapter 6, Page 285)



The Task Force on Climate-related Financial Disclosures (TCFD) recommends measuring carbon exposure on a:

  1. per asset basis.
  2. per company basis.
  3. portfolio-weighted basis.

Answer(s): C

Explanation:

TCFD encourages measuring carbon exposure on a portfolio-weighted basis to provide a comprehensive view of the portfolio's overall carbon footprint, aiding in managing climate-related risks. (ESGTextBook[PallasCatFin], Chapter 3, Page 139)



Companies subject to the EU Taxonomy are required to:

  1. do no significant harm to any of the environmental objectives.
  2. contribute substantially to at least two of the environmental objectives.
  3. comply with the highest standards of social and governance safeguards.

Answer(s): A

Explanation:

Under the EU Taxonomy, companies must ensure that their activities "do no significant harm" to any environmental objective, while aligning with at least one environmental objective.
(ESGTextBook[PallasCatFin], Chapter 3, Page 123)



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