Question 1

An investment analyst is developing a framework to evaluate the materiality of social factors for companies within a specific sector. Which of the following steps would be most essential to include in this process?

Options :

A : Start with an assessment of political level, then at the industry level, and finally at the individual company level

B : Start with an assessment of materiality at the individual company level, then at the industry level, and finally at the political level

C : Start with an assessment of geographical and industry level, and finally at the individual company level

Answer: C

Question 2

Investors focused on the environmental impact of companies must carefully consider sectors with high reliance on natural resources and ecosystem services. Which of the following industries are characteristically associated with operations that can pose significant threats to biodiversity?

Options :

A : airlines and travel

B : banking and insurance

C : agriculture and food production

Answer: C

Question 3

The key objective of the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises is:

Options :

A : Remedying business-related human rights abuses

B : Minimizing the impact of social factors on investments

C :

Requiring investors to take responsibility for the adverse impacts their investments have on society

Answer: A

Question 4

Free, Prior and Informed Consent (FPIC) aims to ensure meaningful participation and decision-making for certain groups affected by projects or land use decisions. In which of the following cases would FPIC principles be most relevant and applicable?

Options :

A : Developments on ancestral land

B : Intensive livestock farming

C : Replacing the existing workforce with cheap labor

Answer: A

Question 5

Which of the following parties is most likely to help investors identify the extent and depth to which investment funds integrate ESG?

Options :

A : Fund labellers

B : Investment platforms

C : Investment consultants

Answer: A

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