A common characteristic of the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks is that they both:
Answer(s): C
Both the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks require an initial reduction in carbon emissions intensity in the starting year, to ensure alignment with climate goals and the Paris Agreement. (ESGTextBook[PallasCatFin], Chapter 3, Page 153)
Which of the following is best described as a form of engagement that requires institutions to have a formal agreement with concrete objectives and agreed steps?
Answer(s): A
A concert party refers to an agreement between institutions to engage with a company in a coordinated manner, usually with concrete objectives and steps agreed upon to drive change through collective shareholder action. (ESGTextBook[PallasCatFin], Chapter 6, Page 285)
A French company is most likely considered to have weak corporate governance practices if its board:
Answer(s): B
A company where the CEO also serves as the board chair is typically viewed as having weak corporate governance practices because it concentrates too much power in one individual, leading to potential conflicts of interest. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)
The potential impacts of climate risk on asset allocation strategies are:
Climate risks have both local and systemic impacts on asset allocation. Local risks pertain to specific regions or industries, while systemic risks can affect the entire financial system due to the global nature of climate change. (ESGTextBook[PallasCatFin], Chapter 3, Page 139)
Compared to equities, bonds most likely:
Bonds are typically considered inferior in the capital structure compared to equities, meaning bondholders are paid after senior debt but before equity holders in the event of a liquidation.(ESGTextBook[PallasCatFin], Chapter 8, Page 451)
Post your Comments and Discuss CFA Sustainable-Investing exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the Sustainable-Investing content, but please register or login to continue.