BLOOMBERG ESG CERTIF ICATION -

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BLOOMBERG ESG CERTIF ICATION -

INTRODUCTION TO ESG AND

SUSTAINABLE FINANCE QUESTIONS

AND ANSWERS 100% SOL VED

Question : Why do traditional valuation models, like

discounted cash flow, fail at capturing the full range of risks companies face today? Choose one.

• They do not consider compliance risk.
• They offer limited, deterministic and potentially

misleading insights.

• They are outdated.

D. They do not consider reputationalQuestion : Why do

traditional valuation models, like discounted cash flow, fail at capturing the full range risk.

Correct answer: B. They offer limited, deterministic and

potentially misleading insights.

Question : A term closely related to sustainability

reporting that refers to the measuring of environmental

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and social performance along with economic performance. This is broken down into what is

called the "3 Ps": Profit, People and the Planet.

• Sustainability Reporting
• Corporate Social Responsibility
• Sustainability Externality
• Triple Bottom Line

Correct answer: D. Triple Bottom Line

Question : A management concept whereby companies

integrate environmental and social concerns into their business. Companies aim to contribute to the well-being of the communities they affect and on which they depend.

• Sustainability Reporting

of risks companies face today? Choose one.

• They do not consider compliance risk.
• They offer limited, deterministic and potentially

misleading insights.

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• They are outdated.
• They do not consider reputational risk.

Correct answer: B. They offer limited, deterministic and

potentially misleading insights.

Explanation : Traditional valuation models. like

discounted cash flow, do not take into account environmental social and governance factors and therefore offer limited, deterministicB. Corporate Social Responsibility

• Sustainability
• Triple Bottom Line
• Externality

Correct answer: B. Corporate Social Responsibility

Question : Refers to the positive or negative effects on

third parties arising from manufacturing and consuming goods and services. Ideally, the negative effects of economic transitions on third parties should be reduced.

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• Sustainability Reporting
• Corporate Social Responsibility
• Sustainability
• Externality
• Triple Bottom Line

Correct answer: D. Externality

Question : Refers to companies' public disclosure of

non-financial performance to communicate their impact, both positive and negative, on the environment and people.

• Sustainability Reporting
• Corporate Social Responsibility
• Sustainability
• Triple Bottom Line
• Externality

Correct answer: A. Sustainability Reporting