CFA Institute Sustainable-Investing Question Answer
In contrast to engagement, monitoring is more likely to result in:
A.
changed company behaviors.
B.
a two-way sharing of perspectives.
C.
efficient capital allocation by investors.
The Answer Is:
C
This question includes an explanation.
Explanation:
Monitoring focuses on tracking a company’s performance and ensuring that the investment aligns with ESG objectives, leading to more efficient capital allocation based on data-driven insights. (ESGTextBook[PallasCatFin], Chapter 6, Page 283)
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