SUSTAINABLE-INVESTING practice question 12 of 35
Which of the following is most likely a result of monitoring rather than engagement?
Full set: 802 questionsCorrect Answer:
B. Efficient capital allocation by investors
Explanation
Monitoring allows investors to gather information on company performance and capital allocation. While engagement may lead to changes in company behavior or improvements in corporate governance, monitoring focuses on analyzing and optimizing capital efficiency.ESG Reference: Chapter 6, Page 297 - Engagement and Stewardship in the ESG textbook.
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