CFA Institute Sustainable-Investing Question Answer
An ESG scorecard is best categorized as:
A.
Purely qualitative analysis
B.
Purely quantitative analysis
C.
A hybrid of qualitative and quantitative analysis
The Answer Is:
C
This question includes an explanation.
Explanation:
An ESG scorecard is a hybrid of qualitative and quantitative analysis. It typically combines quantitative data, such as ESG ratings and key performance indicators (KPIs), with qualitative assessments, such as management quality and governance practices, to provide a comprehensive view of a company's ESG performance.ESG Reference: Chapter 7, Page 368 - ESG Analysis, Valuation & Integration in the ESG textbook.
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