错题 Flashcards
UN Global Impact groups - 4
Human rights
labor
environment
anti-corruption
negative externality
situations where the production or consumption of a product or service’s private price equilibrium cannot reflect the true COSTS of that product or service for society as a whole.
POSITVE - BENEFITS
most probable reason an investor would engage with policy makers on ESG
The consideration of ESG-related maters can contribute to the proper functioning of the financial markets.
target and second largest asset classes which implement responsible investment:
- public equities
2. fixed income
how are pension fund members most likely to influence responsible investment:
their ethical preferences may be taken into account.
challenges limiting the development of ESG investment:
availability to expertise and skilled individual
the quality of data, research, and analysis
limited tools to assist with portfolio construction and management
highest risk to the industry regarding greenwashing
the negative impact on the industry’s credibility
EU taxonomy address
green bonds and low-carbon benchmarks
least likely reason why pension fund trustee may consider ESG investing:
pension fund trustee are the ultimate beneficiaries of pension funds and, as a result, should act in their interest.
primary objective of EU taxonomy
an EU-wide classification system of sustainable activities
long term goal 2015 paris agreement to keep increase in global average temperature under
2C
TCFD core element
task force on climate-related financial disclosures
governance
risk management
strategy
transition risk
policy change to encourage low carbon technologies
most common method of waste management globally
landfill
shadow carbon pricing
- to understand potential impact of external prices on the profitability of a project
- is used to reveal hidden risks and to factor these into future valuation and estimates of capital expenditure
- shadow carbon pricing is used to create a theoretical cost per tonne of carbon emissions by establishing a business’s internal price on carbon
what is considered a climate change adaption strategy
protecting coastlines from erosion
a program, project or approach that has been developed to respond to anticipated climate change impacts in a Specific area of potential concern.
natural capital
stock of natural assets, which include geology, soil, air, water and all living things.
social megatrends are important to consider within the investment analysis
automation
globalization
longevity
just transition
a transition that shares the financial and social burden in a fair way
FAIRR initiative
Farm Animal Investment Risk & Return (FAIRR)
an initiative that focuses on the increased prevalence of antimicrobial resistance抗菌素耐药
OECD Guidelines for multinational Enterprises
is a comprehensive set of government-backed recommendations on responsible business conduct.
offshoring
moving company production to low-income countries
Access to Medicine Index analyze
how pharmaceutical companies are addressing access to medicine in low-to-middle income countries
Element of EU taxonomy social aspect
complying with minimum safeguards
G factor in sovereign debt investor
corruption
rule of law
regulatory effectiveness
proportion of investors that are PRI signatories
audit firm remain in its role for as long as
20 years
which is not a board committee
risk
scandal that help set context for creation of the 1st corporate governance code
PEM
polly peck
enron
mirror Group newspapers
Engagement principle
principle 2 in PRI
principles of responsible investment
chapter 6
what post-financial crisis report led to creation of 1st stewardship code?
the walker report
annual general meeting AGM
is not one of the prioritization decisions that an investor must take in relation to stewardship
new area of focus in the UK Stewardship Code 2020
Outcomes
main barriers to effective engagement
limited resources
difficulty of reaching consensus
conflict of interest
key mechanisms for the escalation of engagement
holding additional meetings
operating collectively with other shareholders
Proposing new board members
major constraint on collective engagement approaches
acting concert rules
passive ESG indices are criticized as being more active than they are presented
opaque method and construction of ESG indices may include space for human judgement and bias
macro-economic climate consideration
asset class sensitivity to interest rate heterogeneity and wide-ranging risk-return profile ability to add low or inverse correlation relative to market return
the below is not:
weighted-average carbon intensity for a single issuer position
esg feature is often overlooked in screening approaches for collective investment funds:
stewardship
measure of effectiveness of ESG integration:
brison attribution
risk factor attribution
which is not an approach within ESG portfolio intgeration
green securitization
which is not expected to be addressed by the portfolio management-related section of an ESG policy:
corporate social responsibility activities such as community volunteering
pension and lifetime saving association PLSA disclosure are expected to report
esg integration and stewardship
which is not one of mckinney’s proposed dimensions of investing for the purpose of applying sustainable investing practices
regulatory and policy environment
which is not a way of assessing whether a fund manger effectively integrates ESG factors, according to the PLSA?
HOW MUCH financial return is directly attributable to ESG factors
which has the lowest risk tolerance
general insurer
which two ESG specific areas of disclosure are requested by the international corporate governance network ICGN model mandate?
a detailed disclosure of stewardship engagement and
voting activity must be made,
and the manager’s assessment of ESG risks must be embedded in the portfolio.
positive effect of globalization of economics have on business models
increase efficiency and lower costs
most financial risk for investor
EARLY stage technology
reporting attribution of returns resulting from ESG integration is likely to be most accurate when
the effect of removing one sector from a portfolio is measured.
which result in most effective engagement by investors
direct dialogue with companies
which esg index provider specifically considers government
Thomas reuters
1st stage of a portfolio management process, which employs ESG integration
undertaking any internal ESG research required
to reduce downside tail risk whilst preserving the largest investable universe possible she could avoid
companies whose G score reflects insufficient financial oversight
how should ESG portfolio management remuneration alignment be designed into the mandate
time frames should reflect performance experiences by clients
investor forum has put an item on the upcoming AGM agenda proposing a new set of board members, the current board should:
MAY seek a ruling from the SEC to have the item removed from the agenda
escalation measure
formally adding the company to an exclusion list
making a public statement
seeking governance improvements through legal methods
physical impact of climate change are most likely to be identified as a key ESG driver for which form of institutional investor?
a property and general insurance company
which are the advantages of using mapping techniques when comparing two portfolios for ESG risk?
specific elements of ESG can be compared across sectors
Triple bottom line
social
environment
financial
given that analyst is able to judge the materiality of an ESG factor, which of the following is true?
the interaction of the ESG factor with financial performance will still be uncertain
ESG service providers that does not produce company-level ESG ratings
real impact racker
RIT
WHAT SHOULD be included in the process for directors to be made accountable to shareholders?
review of the accounts by the Board at the Annual General Meeting AGM
How have companies not benefited from changes in family structure?
coverage during maternity leave adds to expense
Bangladesh investor initiative is intended to address which social factor?
health and safety
ESG survey 2017 showed that
governance has the strongest correlation with company margin growth
which of the sector have the greatest risk of increased insurance costs due to physical climate change?
travel and leisure
which approach is most likely to result in an analyst aggregating data into an ESG score?
quantitative modeling
UK body responsible for issuing the stewardship code
the Financial Reporting Council FRC
