ESG Considerations Quiz

ESG considerations have become increasingly relevant for which of the following reasons?

• Many in the new generation of investors are demanding that investment strategies incorporate ESG factors.

• ESG issues are not having more material financial impacts on a company’s fair value.

• Environmental and social issues are being treated as negative externalities.

Which of the following statements about environmental, social, and governance (ESG) in investment analysis is correct?

• ESG factors are strictly intangible in nature.

• ESG terminology is easily distinguishable among investors.

• Environmental and social factors have been adopted in investment analysis more slowly than governance factors.

________ uses shareholder power to influence corporate behavior to achieve targeted ESG objectives along with financial returns.

• Engagement/Active ownership

• Passive investment

• Short selling

• Day trading

_______ investing is the umbrella term used to describe investment strategies that incorporate environmental, social, and governance (ESG) factors into their approaches.

• Responsible

• Traditional

• Speculative

• Aggressive

An investor concerned about a publicly traded company’s data privacy and security practices would most likely incorporate which type of ESG factors in an investment analysis?

• Social

• Governance

• Environmental

The ESG investment approach that is most associated with excluding certain sectors or companies is:

• thematic investing.

• negative screening.

• positive screening.