Which of the following refers to a network where investors engage with the world's largest corporate emitters of greenhouse emissions?
Answer(s): A
Climate Action 100+ is a global investor initiative aimed at engaging with the world's largest corporate emitters to curb greenhouse gas emissions and improve governance on climate-related issues. (ESGTextBook[PallasCatFin], Chapter 3, Page 153)
A meat-processing company does not sell its pork products in predominantly Muslim countries. Investing in the company on this basis would be considered an example of:
Answer(s): B
Excluding investments in companies that sell pork in predominantly Muslim countries falls under norms-based exclusion, as it is guided by religious and cultural norms. (ESGTextBook[PallasCatFin], Chapter 4, Page 192)
Which of the following most likely indicates strong corporate governance? A company board with:
Gender diversity on a company's board is often seen as an indicator of strong corporate governance, as it promotes diverse perspectives and better decision-making. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)
A disadvantage of the Global Real Estate Sustainability Benchmark (GRESB) framework is that it:
Answer(s): C
The GRESB framework's application can be influenced or controlled by majority owners, which may limit its effectiveness in assessing the sustainability of real estate investments if it is not applied rigorously. (ESGTextBook[PallasCatFin], Chapter 8, Page 451)
Which of the following is most likely the easiest to demonstrate in attributing returns to ESG-related actions?
The performance impact of excluding certain sectors (such as tobacco or coal) can be more easily measured by comparing the portfolio's returns to a benchmark, showing the drag or enhancement due to this exclusion. (ESGTextBook[PallasCatFin], Chapter 7, Page 319)
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