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CFA Institute ESG-Investing Exam - Topic 2 Question 32 Discussion

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

Question #: 32
Topic #: 2

[All ESG-Investing Questions]

In which of the following circumstances is Free, Prior, and Informed Consent (FPIC) most applicable?

AMembers agreeing to a social media platform's privacy policy

BCompany constructing a fish farm next to a native waterfront community

CGovernments passing international standards against forced labor practices

Show Suggested Answer

Suggested Answer: B

by Marci at Jul 18, 2026, 03:31 AM

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Lizbeth

3 days ago

Totally agree with B, it’s all about community consent!

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Jenise

9 days ago

I thought C was about labor rights, not FPIC?

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Freeman

14 days ago

A is more about user agreements, not FPIC.

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Kimbery

19 days ago

Definitely B! FPIC is crucial for indigenous rights.

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Jesusita

24 days ago

A and C seem more about general consent and regulations, but I feel like B is the strongest option for FPIC. Still, I could be wrong!

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Derick

29 days ago

I practiced a question similar to this, and I recall that FPIC is crucial in situations where land use affects local communities, so B definitely fits.

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Lai

1 month ago

I'm not entirely sure, but I remember something about FPIC being related to indigenous rights, which makes me lean towards B too.

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Mitsue

1 month ago

I think FPIC is really about ensuring communities have a say, so B seems like the right choice since it involves a native community.

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