SUSTAINABLE-INVESTING practice question 20 of 35
Determining which ESG issues are material:
Full set: 802 questionsCorrect Answer:
A. Involves judgment
Explanation
Determining the materiality of ESG issues involves judgment, as it depends on various factors, including the company’s industry, business model, and operating environment. Material ESG factors are those that have the potential to significantly impact a company’s long-term financial performance.ESG Reference: Chapter 7, Page 371 - ESG Analysis, Valuation & Integration in the ESG textbook.
Keep practicing
Take the free SUSTAINABLE-INVESTING practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other SUSTAINABLE-INVESTING practice questions
- Question 1If a Japanese company's board does not have committees, it most likely:
- Question 2The mechanism of dual-class shares most likely favors:
- Question 3Based on the Sustainability Accounting Standards Board's (SASB) materiality map, which of…
- Question 4What type of provider of ESG-related products and services is CDP (formerly known as Carb…
- Question 5Which of the following encourages institutional investors to work together on human right…
- Question 6A company is accused of surveying employees to prevent them from forming a union. The dec…
