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ESG issues for finance and investing

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

What does ESG stand for?

a)

Environmental, Social and Governance

b)

Energy, Social and Green

c)

Energy, Social and Green

d)

Environmental, Sustainable and Governance

2.

Which of the following is not an example of an issue included in the "S" of the ESG (i.e., social issues)?

a)

Executive compensation

b)

Human rights

c)

Customer satisfaction

d)

Data Protection and Privacy

3.

When referring to the short-termism issue in the context of ESG investing, how does an excessive focus on quarterly earnings conflict with the nature of ESG issues?

a)

Quarterly earnings provide the most accurate measure of a company's adherence to ESG principles.

b)

ESG issues tend to manifest and affect financial performance over longer periods, unlike the short-term focus on quarterly earnings.

c)

Companies that focus on quarterly earnings are more likely to invest in ESG initiatives.

d)

Quarterly earnings are aligned with ESG goals as they reflect immediate environmental benefits.

4.

The Paris Agreement is a legally binding international treaty on climate change. Its goal is to limit global warming to ____ degrees Celsius, compared to pre-industrial levels.

a)

well below 1.5, preferably to 1

b)

well below 2.5, preferably to 1.5

c)

well below 3, preferably to 2.5

d)

well below 2, preferably to 1.5

5.

Which of the following is a controversial problem in Climate Finance?

a)

D&I

b)

Whistleblowing

c)

Window dressing

d)

Greenwashing

6.

Which country withdrew from the Paris Agreement in 2020?

a)

Russia

b)

China

c)

United States

d)

Iran

7.

76% of white people (in their working age) were employed in England, Scotland and Wales in 2021.

What was the % of employed people from all other ethnic groups?

a)

72%

b)

75%

c)

67%

d)

79%

8.

Which of the following is an example of climate adaptation measure that a company may adopt?

a)

Reducing GHG emission

b)

Buying insurance

c)

Adopting 100% renewable energy

d)

Writing off inventory

9.

A policy shift towards higher taxes on carbon is an example of...

a)

Transition risk

b)

Physical risk

c)

External risk

d)

Endogenous risk

10.

Where is the 2023 United Nations Climate Change Conference (COP28) taking place (30 Nov 2023 - 12 Dec 2023)?

a)

Glasgow, Scotland (UK)

b)

Sharm El Sheikh, Egypt

c)

Dubai, UAE

d)

Madrid, Spain

11.

According to "Women in Business 2021" (Grant Thornton, 2021), what is the geographic area with the highest percentage of women in Senior Management (39%)?

a)

Africa

b)

Asia Pacific

c)

European Union

d)

North America

12.

According to 90% of the studies, what is the relationship between ESG practices and performance? Source: CFA Institute, 2015

a)

ESG practices have no clear impact on operational performance

b)

Strong ESG practices correlate with worse operational performance

c)

There is a positive correlation between strong ESG practices and better operational performance

d)

ESG practices are inversely related to stock price performance

13.

How do you call an asset that has suffered from unanticipated or premature write-downs, devaluation or conversion to liabilities?

a)

Sunk asset

b)

Windfall asset

c)

Stranded asset

d)

Bubble asset

14.

__% of the world’s largest companies are reporting exposure to physical or market transition risks associated with climate change (S&P Global).

a)

35

b)

50

c)

65

d)

80

15.

What percentage of investors take ESG issues into account in their investment decisions? Source: CFA Institute, 2015

a)

27%

b)

48%

c)

62%

d)

73%