CFA Institute Sustainable-Investing Question Answer
Examples of quantitative ESG analysis include:
A.
tilting toward certain ESG factors in index-based strategies.
B.
analyzing if an issuer’s executive compensation policies are linked to progress on ESG-related goals.
C.
checking that an issuer’s reporting on carbon emissions complies with a broadly accepted sustainability reporting framework.
The Answer Is:
A
This question includes an explanation.
Explanation:
CFA guidance notes thatquantitative ESG analysisinvolvesstatistical or numerical methodsto measure ESG factors—such astilting a portfolio’s weightstoward high-ESG-rated companies in an index strategy. Options B and C involvequalitative assessments(governance policy linkages and disclosure compliance), not quantitative measurement of ESG exposures.
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