Lecture 9

Question 1

Impact Investing

Answer 1

Investments made with the intention to generate positive esg factors

Question 2

Shareholder engagement

Answer 2

Use of shareholder power to improve corporate ESG performance

Question 3

Thematic ESG Investing

Answer 3

Investments targeted at specific ESG themes

Question 4

Positive screening

Answer 4

Systematic inclusion of companies based on positive ESG factors

Question 5

ESG Integration

Answer 5

Process of embedding ESG factors into financial analysis

Question 6

Negative Screening

Answer 6

Exclusion of specific companies, sectors, etc., based on negative esg characteristics

Question 7

Norms-Based Screening

Answer 7

Exclusionary screening based on compliance with international norms and standards

Question 8

SASB

Answer 8

Sustainability Accounting Standards Board

Question 9

SASB turned into?

Answer 9

ISSB (International Sustainability Standards Board)

Question 10

Stakeholder Theory

Answer 10

Firms should maximize the welfare of all groups that are affected by the firms components

Question 11

Prudent

Answer 11

Corporations take ethical action because it makes good business sense

Question 12

Sin stocks

Answer 12

Company stocks that are in the alcohol, gambling, tobacco, and adult entertainment business

Question 13

FTSE KLD 400 Social Index

Answer 13

Index that consists of 400 socially responsible companies

Question 14

ICCR

Answer 14

Interfaith Center on Corporate Responsibility

Question 15

Divestment

Answer 15

Shareholders sell a firm’s shares and advocates other shareholders to do the same

Question 16

Double Bottom Line

Answer 16

Earn returns by investing in companies that meet their esg criteria

Question 17

Microfinance lending

Answer 17

Practice of lending small amounts to the very poor so they can start a business

Question 18

Shariah Board

Answer 18

Board consisting of Muslim scholars who review contracts to ensure that they are compliant with the quran