CFA Institute Sustainable-Investing Question Answer
The European Union (EU) Ecolabel:
A.
is the official EU voluntary label for environmental excellence
B.
targets explicit claims made on a voluntary basis by businesses towards consumers
C.
flags products that have a guaranteed, independently verified, high environmental impact
The Answer Is:
A
This question includes an explanation.
Explanation:
The European Union (EU) Ecolabel is the official EU voluntary label for environmental excellence.
EU Ecolabel Overview: The EU Ecolabel is a recognized certification that indicates a product or service has a reduced environmental impact throughout its lifecycle.
Voluntary Participation: Businesses can voluntarily apply for this label, demonstrating their commitment to environmental excellence and compliance with rigorous environmental criteria set by the EU.
Consumer Trust: The label helps consumers identify products and services that are environmentally friendly and meet high environmental standards, promoting sustainable consumption.
CFA ESG Investing References:
The CFA Institute’s discussions on environmental labels and certifications highlight the role of the EU Ecolabel as a voluntary but stringent standard for environmental excellence, helping consumers and investors make informed, sustainable choices.
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