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CESGA Certified Environmental, Social and Governance
Analyst Exam 2025 (Actual Exam) | Featuring Topics
such as ESG Integration in Investment Decisions,
Corporate Governance, and Sustainability Reporting
Standards
Which of the following grants positive social and environmental impact with no financial return? a) Philanthropy b) Impact investing c) ESG integration ---------CORRECT ANSWER-----------------a) Which of the following strategies is considered to pursue ESG opportunities? a) Philanthropy b) Negative screening c) ESG integration d) Impact investing ---------CORRECT ANSWER-----------------d) Which of the following strategies has limited or no regard for ESG factors? a) Philanthropy b) Traditional investment
c) ESG integration d) Themed investing ---------CORRECT ANSWER-----------------b) According to module 3, which of the following statements defines the markets for ESG/ Responsible Investment? a) Dynamic markets with high growth rates b) Double materiality with low growth rates c) Sustainable sectors with high growth rates d) Financial and Sustainability markets with high growth rates ---------CORRECT ANSWER-----------------a) According to module 3, which of the following statements is a takeaway information? a) Responsible Investment must be standardized b) ESG must be classified between different geographic areas c) Sustainable finance is on its way to becoming a market standard d) ESG/Responsible Investment is on its way to becoming a market standard ------- --CORRECT ANSWER-----------------d) Which statement is correct? Globally, the relative Google search volume of "ESG" in the finance context experienced a... a) Steady decline in the last 10 years b) A decline over the last 3 years
d) It has not yet been calculated ---------CORRECT ANSWER-----------------a) Which region uses the ESG integration strategy the most? a) The United States b) Japan c) Canada ---------CORRECT ANSWER-----------------a) Is negative/exclusionary screening used more than positive/best-in- class screening? a) Yes b) No c) Only in Europe d) Only in the United States ---------CORRECT ANSWER-----------------a) Which of the following SRI strategies had the lowest amount of AuM (assets under management) in Europe in the years 2016 to 2020? a) Engagement / voting b) Impact/community investing c) Sustainability Themed d) Negative/exclusionary screening ---------CORRECT ANSWER-----------------b)
Globally, which of the following SRI strategies saw the most prominent increase in absolute terms of AuM (assets under management) between 2016 and 2020? a) Engagement / voting b) Norms-based screening c) ESG integration d) Negative/exclusionary screening ---------CORRECT ANSWER-----------------c) In the past, how did the share of assets in sustainable investing differ between retail investors and institutional investors? a) The majority of assets were held by institutional investors b) The majority of assets were held by retail investors c) Both groups held an equal share of sustainable investing assets ---------CORRECT ANSWER-----------------a) According to the GSIA, how are assets classified with reference to each sustainable investment strategy? a) Only as global b) Depending on article 8 or 9 SFDR c) Per region and globally d) As relating to the six environmental objectives of the EU Taxonomy --------- CORRECT ANSWER-----------------c)
According to Global Impact Investing Network (GIIN), the term "impact investment" refers to... a) Investments that aim to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns b) Investments made into companies, organizations, and funds with the intention to generate measurable financial impact c) Investments made with the expectation of holding an asset for an indefinite period of time by an investor with the capability to do so d) Investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return ---------CORRECT ANSWER-----------------d) Which of the following is a correct statement about "impact investment"? a) Impact investments are those investments that aim to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns b) Impact investment means the same as ESG investment c) Impact investment means the same as sustainable investment d) Impact investment are investments made in companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return ---------CORRECT ANSWER-----------------d) Which of the following is an entity that has defined a classification of ESG invement strategies?
a) EFAMA b) EBA c) SASB ---------CORRECT ANSWER-----------------a) Which of the following does NOT correspond to a classification of ESG strategies? a) GRI b) Eurosif c) EFAMA d) PRI ---------CORRECT ANSWER-----------------a) Which of the following is not a PRI-equivalent definition? a) Negative/exclusionary screening b) Integration of ESG issues c) Environmental integration d) Norms-based screening ---------CORRECT ANSWER-----------------c) Comparison of classifications: largely congruent definitions of approaches. Which organizations offer a definition of Impact Investing? A) Eurosif B) GSIA-equivalent C) GRI D) SASB
Which of the following sectors is more often used as an exclusion criteria in Europe? a) Garment producers b) Renewable energy c) Arms d) Car manufacturers ---------CORRECT ANSWER-----------------c) Which of the following is NOT a commonly used norm in norm-based exclusions? a) United Nations Global Compact Principles b) Global Reporting Initiative (GRI) c) Rio Declaration on Environment and Development d) Universal Declaration of Human Rights ---------CORRECT ANSWER-----------------b) Which of the following is a commonly used norm in norm-based exclusions? a) EU Green Deal b) Code of good governance for listed companies c) Rio Declaration on Environment and Development d) TCFD ---------CORRECT ANSWER-----------------c) Which of the following is a commonly used norm in norm-based exclusions? a) Global Reporting Initiative (GRI) b) Science Based Targets initiative (SBTi)
c) United Nations Convention against Corruption d) TCFD ---------CORRECT ANSWER-----------------c) Which of the following is NOT true about best-in-class screening? a) It consists of a selection of companies with the best environmental, social and governance practices b) It is biased towards large-cap companies c) It is biased towards small-cap companies d) It is increasingly used in fixed income strategies ---------CORRECT ANSWER-------- ---------c) Which strategy is increasingly used in fixed income strategies? A) Value-based screening B) Norm-based screening C) ESG integration D) Best-in-class screening a) B & C b) A & C c) C & D d) A & B ---------CORRECT ANSWER-----------------d)
Which of the following statements is true regarding ESG factors integration in investment? a) Profit and purpose are conflicting goals when talking about ESG factors integration b) Profit, purpose and short-term returns are the goals of ESG factors integration c) ESG integration in investment decisions is motivated by both financial and sustainability reasons d) ESG integration in investment decisions is motivated only by financial reasons -- -------CORRECT ANSWER-----------------c) According to current practices of US investors, which activity is classified in the risk management category? a) ESG and financial risk exposures and limits b) Sustainability risk exposures c) Analysis of financial performance d) ESG definition ---------CORRECT ANSWER-----------------a) The Revised Shareholder Rights Directive 2017/828 EC was relevant for the regulation of engagement and voting at the EU level. Which one of the following is a consequence of this Directive? a) Shareholders dialogues occurring "behind closed doors" b) Increased transparency on proxy advisors
c) It encouraged short-term investment by institutional investors and asset managers d) It makes cross-border voting more difficult. ---------CORRECT ANSWER------------- ----b) The Revised Shareholder Rights Directive 2017/828 EC was relevant for the regulation of engagement and voting at the EU level. Which of the following is a consequence of this directive? a) Shareholders do not have a "say on pay" through voting rights b) Increased transparency on proxy advisors c) It encouraged short-term engagement of institutional investors and asset managers ---------CORRECT ANSWER-----------------b Which of the following aspects does NOT represent a main characteristic of the management dialogue? a) Direct dialogue with executive management and/or the board b) Dialogues usually remain "behind closed doors" c) Reflection of both risks and opportunities d) Dialogue with employee' representatives and trade unions ---------CORRECT ANSWER-----------------d) It is possible to conduct management dialogue through various intensity levels. Which of the following is NOT one of them? a) Shareholder letters
Which of the following refers to challenges of Proxy Voting? a) Costs and benefits and Conflicts of interest b) Passive investment strategies and the Free-rider problem c) Lack of transparency and changes to investment strategies d) ESG data availability and compliance with the regulatory framework --------- CORRECT ANSWER-----------------a) Which of the following does NOT refer to challenges of Proxy Voting? a) Costs and benefits b) Free-rider problem c) Lack of transparency d) ESG data availability ---------CORRECT ANSWER-----------------d) A "conflict of interest" is one of the challenges of an ESG strategy. Which one is it? a) Best-in-class screening b) Norm-based screening c) Engagement and proxy voting d) Sustainability-themed investments ---------CORRECT ANSWER-----------------c) Which strategy has as a challenge the existence of appropriate capital across the risk/return spectrum? a) Impact investing
b) Engagement and proxy voting c) Best-in-class screening d) Sustainability-themed ---------CORRECT ANSWER-----------------a) Which of the following does NOT refer to challenges of impact investing? a) High-quality investment opportunities (fund or direct) with track record b) Appropriate capital across the risk/return spectrum c) Generation of returns that range from below market to risk-adjusted market rate d) Common understanding of definition and segmentation of the impact investing market ---------CORRECT ANSWER-----------------c) Which of the following statements about impact investing as an ESG strategy is true? a) Impact investments are expected to generate a short-term financial return b) Impact investments have the intention to generate social and environmental impact c) Data availability is one of the challenges of impact investments d) Impact investment remained the most popular ESG strategy in Europe between 2013 and 2017 ---------CORRECT ANSWER-----------------b) Which of the following strategies has the intention to avoid harm? a) Best-in-class screening & Sustainability themed investments
- Sustainalytics
- SustainAbility ---------CORRECT ANSWER-----------------SustainAbility Which of the following statements is TRUE
- Companies use their sustainability reports to report edited and normalized data to intermediaries
- The NGOs report additional information to intermediaries, brokers, analysts and asset managers related to controversies in companies
- Intermediaries usually share raw data with brokers, analysts, asset managers and investors
- The key actors in the information flow related to data availability are NGOss ----- ----CORRECT ANSWER-----------------The NGOs report additional information to intermediaries, brokers, analysts and asset managers related to controversies in companies Which of the following are NOT actors in the information flow in relation to data availability?
- Companies
- NGOs
- Intermediaries
- Governments ---------CORRECT ANSWER-----------------Governments Which of the following sentences is false?
- Many studies suggest that a good ESG performance cannot lead to better Corporate Financial Performance (CFP)
- 50%of studies exhibit a significant positive relation between ESG-CFP
- 90% of studies find a non-negative ESG-CFP relationship
- ESG impacts operational metrics and financial performance ---------CORRECT ANSWER-----------------Many studies suggest that a good ESG performance cannot lead to better Corporate Financial Performance (CFP) Which of the following sentences is true?
- Demand for ESG measures is increasing
- There is a lack of empirical evidence for the business, social and environmental rationale of ESG investing
- Only one driver explains the growth of the ESG market: climate change --------- CORRECT ANSWER-----------------Demand for ESG measures is increasing Which of the following statements is false?
- S&P has acquired RobecoSam
- Moody's has acquired Vigeo Eiris
- Fitch as acquired ISS
- MorningStar has acquired Sustainalytics ---------CORRECT ANSWER----------------- Fitch has acquired ISS How do companies provide ESG data?
