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CFA ESG Certification Exam Newest 2025/2026 Complete All 150 Questions And Correct Detailed Answers (Verified Answers) |Already Graded A+||Brand New Version!!
Which of the following best describes the principles of a circular economy?
a) Extracting natural resources for products that are then used
and eventually discarded
b) Designing out waste and pollution, keeping materials in use
and regenerating natural systems
c) Ensuring that all products are returned to the manufacturers to
reuse component parts
d) Producing goods only for consumption by customers in the
manufacturer's domestic market - ANSWER-b
Which of the following is NOT a requirement for a bond or a loan to be considered 'green' under frameworks such as the Green Bond Principles (GBP) or Green Loan Principles (GLP)?
a) A description of the environmental benefits associated with
the use of the proceeds 1 / 4
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b) Minimum of 10 tonnes of certified emissions reductions per
every US $1 of debt
c) A clear process for the evaluation and selection of eligible
products
d) Detailed and regular reporting - ANSWER-b
The long term goal of the Paris Agreement is to keep the increase in the global average temperature above pre-industrial levels to well below what level?
- 1C (1.8F)
- 1.5C (2.7F)
- 2.0C (3.6F)
- 2.5C (4.5F) - ANSWER-c
For a reasonable chance of limiting global average temperature rise to 1.5C (2.7F), the Intergovernmental Panel on Climate Change (IPCC) recommends that global emissions of CO2 must
reach a 'net zero' around:
- 2050
- 2030
- 2100
- 2075 - ANSWER-a 2 / 4
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What is the blue economy?
a) Industrial activities which generate pollution of oceans and
inland waterways
b) The global networks of shipping which transports people and
manufacturing goods
c) Products and processes used to clean up water based
environmental pollution
d) Sustainable economic and social activity related to oceans
and coastal areas - ANSWER-d
What is the primary objective of the EU Taxonomy?
a) Clear labelling of the use of proceeds for green bonds
b) An EU-wide classification system of sustainable activities
c) A classification of what 'green' activities states can finance
domestically without breaching competition rules
d) A classification system of Scope 1, 2, and 3 emissions
associated with the activities of EU companies - ANSWER-b
Which social megatrends are important to consider within the investment analysis?
a) Human rights, health and safety, and employee relations 3 / 4
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b) The Millennium and Sustainable Development Goals
c) Automation, globalization, and longevity
d) Natural capital, biodiversity, and climate change adaptation -
ANSWER-c
What is an example of an internal and an external social factor?
a) Internal: biodiversity; external: product liability
b) Internal: health and safety; external: social opportunities
c) Internal: animal welfare; external: employee relations
d) Internal: ESG analysis; external: engagement service
providers - ANSWER-b
Why is a (social) materiality assessment important?
a) It is standard procedure in investment analysis, which makes
it an important tick-box exercise
b) It is always recommendable to conduct assessments, because
these provide you with invaluable insights
c) Not all countries, sectors, and companies are affected equally
by the different social megatrends and social factors
d) A social materiality assessment is required by law in many
jurisdictions - ANSWER-c
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