CFA Institute Sustainable-Investing Question Answer
A company’s exposure to social trends and factors:
A.
Tends to be similar across companies in the same sector
B.
Tends to be similar across companies in the same country
C.
Depends on its culture, systems, operations, and governance
The Answer Is:
C
This question includes an explanation.
Explanation:
A company’s exposure to social trends and factors depends largely on its culture, systems, operations, and governance. While certain trends may affect entire sectors or countries, the way a company is structured and governed will determine how it responds to and is impacted by these trends.ESG Reference: Chapter 4, Page 206 - Social Factors in the ESG textbook.
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