Module 1 Quiz

1. Question

How many United National Sustainable Development Goals are there?

10
17
25
21

2. Question

ESG investing is based on economic, social and environmental trends and makes which of the following assumptions?

That by managing the risks associated with short-term economic, social and environmental trends companies will have the best chance to prosper, taking decisions well and incorporating the full range of material risk factors into their decision-making.
That by managing the risks associated with long-term economic, social and environmental trends companies will have the best chance to prosper, taking decisions well and incorporating the full range of material risk factors into their decision-making.
That by managing the risks and opportunities associated with short-term economic, social and environmental trends companies will have the best chance to prosper, taking decisions well and incorporating the full range of material risk factors into their decision-making.
That by managing the risks and opportunities associated with long-term economic, social and environmental trends companies will have the best chance to prosper, taking decisions well and incorporating the full range of material risk factors into their decision-making.

3. Question

Which of the following is not a form of Responsible Investing?

Green investing
Sustainable investing
Socially responsible investing
Valuation investing

4. Question

Any business has a wide range of stakeholders, which group of stakeholders should be given the least consideration when making business decisions?

Local communities
Suppliers
Senior management
Customers

5. Question

What approach is being adopted by a company which commits to an increase in the use of recycled materials?

Pollution-free
Waste-free
Circular economy
Zero-waste

6. Question

Which of the following best describes the concept of a material environmental issues?

Material environmental issues are factors that could have a significant negative impact on a company’s business model and value drivers; these factors differ from one sector to another.
Material environmental issues are factors that could have a significant positive or negative impact on a company’s business model and value drivers; these factors differ from one sector to another.
Material environmental issues are factors that could have a significant negative impact on a company’s business model and value drivers; these factors are common to all sectors.
Material environmental issues are factors that could have a significant positive or negative impact on a company’s business model and value drivers; these factors are common to all sectors.

7. Question

Environmental impacts may be either direct or indirect. Which of the following is an indirect environmental impact for a manufacturer who mines minerals, has them transported to their factory, and uses them in production?

Energy consumption at the production facilities
Water consumption within the factory
The release of toxic production materials
Carbon emissions from the transportation

8. Question

The transition to a low-carbon economy may affect company cash flows and profitability, perhaps as a result of stranded assets. What are stranded assets?

Assets that can no longer be accessed as a result of rising sea levels.
Assets whose value is significantly reduced because they are rendered obsolete or non-performing from a financial perspective.
Assets that will be lost as a result of water shortages.
Assets that are inaccessible due to political change in developing countries.

9. Question

The Stern review of 2006 concluded which of the following about climate change?

It is easy to accurately predict the consequences of climate change, and we now know enough to understand the risks.
No one can predict the consequences of climate change with complete certainty, and everyone has a different understanding of the risks
It is easy to accurately predict the consequences of climate change with complete certainty, but we don't yet know enough to understand the risks.
No one can predict the consequences of climate change with complete certainty, but we now know enough to understand the risks

10. Question

Which of the following can be defined as variability among living organisms?

Ecosystems
Ecodiversity
Biodiversity
Biosystems

11. Question

The Paris Agreement has what long-term goal?

To limit the increase in global average temperature to 1.0°C above pre-industrial levels
To limit the increase in global average temperature to 2.0°C above pre-industrial levels
To limit the increase in global average temperature to 1.5°C above pre-industrial levels
To limit the increase in global average temperature to 2.5°C above pre-industrial levels

12. Question

An investor who wants to do the most towards the reduction of worldwide mortality rate should target which of the following issues?

Drought
Pollution
Malaria
Poverty

13. Question

Which of the following correctly describes the demographic differences between developed and developing markets?

In developed markets, the ratio between the active and inactive part of the workforce drops and older people have lower accumulated savings per head.
In developed markets, the ratio between the active and inactive part of the workforce rises and older people have lower accumulated savings per head.
In developed markets, the ratio between the active and inactive part of the workforce drops and older people have higher accumulated savings per head.
In developed markets, the ratio between the active and inactive part of the workforce rises and older people have higher accumulated savings per head.

14. Question

Which of the following most accurately describes social trends in developed countries?

People have more autonomy and are more reliant on family for economic security
People have more autonomy and are less reliant on family for economic security
People have less autonomy and are more reliant on family for economic security
People have less autonomy and are less reliant on family for economic security

15. Question

Forced labour is most commonly found in which of the following scenarios?

In industries that are poorly regulated, and where the production process requires few workers.
In industries that are highly regulated, and where the production process requires many workers.
In industries that are poorly regulated, and where the production process requires many workers.
In industries that are highly regulated, and where the production process requires few workers.

16. Question

How many people are currently estimated to be in forced labour globally?

2 million
14 million
25 million
50 million

17. Question

Which of the following statements is true regarding women in the workforce?

More women are entering the workforce, however, in comparison to men, women are more likely to become and remain unemployed.
More women are entering the workforce and, women are less likely than men to become and remain unemployed.
Fewer women are entering the workforce and, in comparison to men, are more likely to become and remain unemployed.
Fewer women are entering the workforce. However, in comparison to men, women are less likely to become and remain unemployed.

18. Question

Which of the following can be identified as a beneficial impact of globalisation?

Increased efficiency and lower costs
Reduced transportation costs and resulting emissions
Improved market regulation and consumer protection
Improved social well-being

19. Question

Which of the following is an example of, respectively, an external and an internal social factor?

Biodiversity and customers
Sourcing local content and working conditions
Customers and employee relations
Gender balance and governance

20. Question

Which of the following statements regarding the agency problem in corporate governance is false?

The agency challenge is magnified at smaller corporations.
Corporate governance attempts to ensure that there is greater alignment between the interests of the agents with the owners through appropriate chains of accountability.
The agency problem arises in that the interests of the managers may not always be wholly aligned with the interests of the owners of the business.
The agency problem has been identified as an inevitable consequence of the separation of ownership and control.

21. Question

What is the purpose of a qualified and independent audit?

To determine whether the directors have been running the business correctly
To provide an independent review of financials prepared by the management
To confirm that the accounting records are correct and free from any error
To verify that there has been no fraud within the company

22. Question

Which of the following is an ESG factor that is likely to enhance a company’s value in the long term?

Robust risk management
Transparent taxation
Flat organisational structure
Boardroom diversity

23. Question

Which of the following statements regarding corporate governance is correct?

There are different rules worldwide, but corporate governance comes down to two ‘A’s: accountability and alignment.
There are common rules worldwide and corporate governance comes down to two ‘A’s: accounting systems and alignment.
There are different rules worldwide but corporate governance comes down to two ‘A’s: accounting systems and alignment.
There are common rules worldwide and corporate governance comes down to two ‘A’s: accountability and alignment.

24. Question

Which of the following best describes the purpose of the United Nations Sustainable Development Goals (UN SDGs)?

To act as a blueprint/ framework to achieving a better and more sustainable future for all
To act as a ‘menu’ for thematic investors to organise their portfolios around
To set development goals for emerging market economies
To set charitable and philanthropic goals for developed economies to contribute to the sustainable development of emerging market economies

25. Question

Is the following statement true or false: ‘Stakeholder theory says if you just focus on financiers, you miss what makes capitalism tick, which is that shareholders, financiers, employees, suppliers, communities can together create something that no one of them can create alone’

True
False

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