CFA Institute Exam ESG-Investing Topic 1 Question 2 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 2
Topic #: 1

Under which perspective did the Freshfields Report argue that integrating ESG considerations was necessary in all jurisdictions?

AEconomic

BFiduciary duty

CImpact and ethics

Show Suggested Answer

Suggested Answer: B

The Freshfields Report argued that integrating ESG considerations is necessary from a fiduciary duty perspective, as failure to consider material ESG risks can undermine long-term financial performance. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)

by Christene at Nov 19, 2024, 12:51 PM

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Timothy

7 months ago

B) Fiduciary duty is the right answer, no doubt. It's the only one that really captures the legal obligation angle.

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Gennie

7 months ago

A) Economic? I hope not. Making money shouldn't be the only factor here. We need to look at the bigger picture.

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Leah

6 months ago

C) Impact and ethics

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Leigha

7 months ago

B) Fiduciary duty

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Eileen

7 months ago

Hmm, I'm torn between B) and C). Fiduciary duty is important, but the ethics and societal impact angle is crucial too.

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Coral

6 months ago

Ultimately, integrating ESG considerations benefits both the company and society as a whole.

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Talia

6 months ago

True, it's a balancing act between financial responsibility and social considerations.

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Jeanice

7 months ago

Fiduciary duty is crucial, but we can't ignore the impact and ethics side of things.

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Ahmad

7 months ago

I think both B) and C) are important perspectives to consider.

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Roxanne

8 months ago

I believe the answer is B) Fiduciary duty because it also involves financial responsibility.

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Nan

8 months ago

I agree with Kassandra, integrating ESG considerations is important for impact and ethics.

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Catherin

8 months ago

C) Impact and ethics makes the most sense to me. Integrating ESG is about the real-world effects, not just legal technicalities.

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Marjory

8 months ago

I think the answer is B) Fiduciary duty. The report must have argued that considering ESG is part of a fund manager's legal responsibility.

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Alease

7 months ago

Exactly, fund managers need to consider ESG factors to fulfill their duty to act in the best interest of their clients.

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Oretha

7 months ago

So, it's not just about ethics, but also about fulfilling legal obligations as a fiduciary.

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Shannon

7 months ago

It makes sense, considering ESG factors can impact the long-term financial performance of investments.

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Tesha

8 months ago

I agree, the Freshfields Report argued that integrating ESG considerations is part of a fund manager's fiduciary duty.

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Kassandra

8 months ago

I think the answer is C) Impact and ethics.

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