ESG Self-Assessment Quiz

We have put together 10 multiple choice questions to reinforce your learning. The questions are based on the materials on ‘Quarter 1: ESG 101 for Finance Professionals’. Ideally you have had the opportunity to go through the articles, slides, videos etc before attempting the questions.

Choose the best answer. Immediate feedback will be provided.

This set of questions have been put together by Dexter Tiah, CFA.

Question Title

* 1.
What does the “S” in “ESG” refer to?

A: Societal

B: Sustainability

C: Social

D: None of the above

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* 2.
According to Professor Edmans, what is not a problem with the “pie-splitting mentality”?

A: Profits generate returns to stakeholders.

B: There is a limit to what can be achieved by regulation

C: If responsible business was only about pie-splitting, it leaves no role for small firms with low profits to distribute to society

D: None of the above

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* 3.
According to Bolsego, which of the following statements correctly captures the ESG performance paradox?

I: The best investment strategy may be to buy the worst performers on ESG measures

II: Embracing ESG can lower a firm’s discount rate

III: There is a low correlation between ESG ratings across providers

IV: Existing strong ESG credentials could already be incorporated into the price of stocks

A: I and II only

B: II and IV only

C: III only

D: All of the above

Question Title

* 4.
Which of the following is not a part of the Monetary of Singapore’s Green Finance Action Plan?

A: Environmental risk management guidelines

B: Green Investments Programme

C: Fintech hackcelerator

D: Internal reviewers and rating agencies

Question Title

* 5.
In the Business Times article “Sustainable (or ESG) investing: Are we on the same page?” written by Soon, which of the following is described as a subset of socially responsible investing?

A: Impact investing

B: Ethical investing

C: Best-in-class investing

D: ESG investing

Question Title

* 6.
With reference to the article by Rimaund and Lukaszeweski, which of the following is not a big signal for greener financial markets?

A: Participation of reputable agents

B: Issuance by corporate issuers

C: Certification

D: None of the above

Question Title

* 7.
A fund’s prospectus includes the following description:

“We do not invest in tobacco, mining and gambling companies, and we invest in the top companies that generate a positive, measurable social impact”.

According to Soon, which of the following does not describe the fund’s strategy?

A: Socially responsible investing

B: ESG investing

C: Best-in-class investing

D: Impact investing

Question Title

* 8.
Which of the following is an argument about ESG investing made by Orsagh?

I: ESG integration is about mitigating risks and enhancing returns

II: To achieve a strong risk-adjusted performance, leading investors believe that ESG integration require a holistic approach utilizing all value drivers of a company to be assessed to develop a more informed investment decision

III: Values-based investing is a sub-set of ESG investing

A: I only

B: II only

C: I and III only

D: II and III only

Question Title

* 9.
In the article written by Orsagh, which of the following is not a difference between exclusionary screening and ESG integration?

A: Exclusionary screening reduces the investment universe while ESG integration does not

B: ESG integration fully embeds financial information and ESG information into the investment analysis while exclusionary screening does not

C: Exclusionary screening takes place before investment analysis whereas ESG integration takes place after investment analysis

D: ESG integration is used as a risk management tool whereas exclusionary screening is not

Question Title

* 10.
Which of the following is not an example of governance risk?

A: An executive with a role of the CEO and chairman of the board

B: Employees with different compensation structure for similar roles within an organization

C: Low diversity of employees within the organization

D: Little to no engagement with employees in the decision-making of companies regarding union participation

Question Title

* 11. Please provide constructive feedback on the self-assessment process and questions. We seek to improve our offerings at every opportunity to achieve our aim of benefitting society through the society’s ESG events. Thank you.

Question Title

* 12. If you would like to receive more ESG content from us, please leave your contact details here:

Name

Email Address

Phone Number

Question Title

* 1. What does the “S” in “ESG” refer to?

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* 2. According to Professor Edmans, what is not a problem with the “pie-splitting mentality”?

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* 4. Which of the following is not a part of the Monetary of Singapore’s Green Finance Action Plan?

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* 5. In the Business Times article “Sustainable (or ESG) investing: Are we on the same page?” written by Soon, which of the following is described as a subset of socially responsible investing?

Question Title

* 6. With reference to the article by Rimaund and Lukaszeweski, which of the following is not a big signal for greener financial markets?

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* 7. A fund’s prospectus includes the following description:“We do not invest in tobacco, mining and gambling companies, and we invest in the top companies that generate a positive, measurable social impact”. According to Soon, which of the following does not describe the fund’s strategy?

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* 9. In the article written by Orsagh, which of the following is not a difference between exclusionary screening and ESG integration?

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* 10. Which of the following is not an example of governance risk?

Question Title

* 11. Please provide constructive feedback on the self-assessment process and questions. We seek to improve our offerings at every opportunity to achieve our aim of benefitting society through the society’s ESG events. Thank you.

Question Title

* 12. If you would like to receive more ESG content from us, please leave your contact details here:

* 1.
What does the “S” in “ESG” refer to?

* 2.
According to Professor Edmans, what is not a problem with the “pie-splitting mentality”?

* 4.
Which of the following is not a part of the Monetary of Singapore’s Green Finance Action Plan?

* 5.
In the Business Times article “Sustainable (or ESG) investing: Are we on the same page?” written by Soon, which of the following is described as a subset of socially responsible investing?

* 6.
With reference to the article by Rimaund and Lukaszeweski, which of the following is not a big signal for greener financial markets?

* 9.
In the article written by Orsagh, which of the following is not a difference between exclusionary screening and ESG integration?

* 10.
Which of the following is not an example of governance risk?