Discuss CFA Institute ESG-Investing Exam Topic 2 Question 4

With respect to ESG reporting by investment managers, the 2020 version of the UK Stewardship Code calls for more reporting on the:

Aoutcomes from ESG activity.

Bpolicies and activities of signatories.

Cassertions of investment managers on ESG themes.

Suggested Answer: A

The 2020 version of the UK Stewardship Code emphasizes reporting on the outcomes from ESG activity, highlighting the practical impact of stewardship efforts rather than just focusing on policies or intentions. (ESGTextBook[PallasCatFin], Chapter 6, Page 276)

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27 comments · newest first

Kenny 10 months ago

Assertions? That seems a bit vague to me.

Alex 11 months ago

Totally agree, transparency is key!

Elbert 11 months ago

Wait, are they really expecting managers to report on outcomes?

Daren 11 months ago

I think it's mostly about policies and activities.

Sylvie 11 months ago

Definitely more focus on outcomes now.

Patria 11 months ago

I vaguely recall that the 2020 version wanted more transparency on the activities, so maybe it's about the policies and activities of signatories?

Maia 12 months ago

I feel like the focus is on assertions of investment managers on ESG themes, but I could be mixing it up with another topic.

Quentin 12 months ago

I remember practicing a question about the policies and activities of signatories, so that might be the right answer here.

Adell 12 months ago

I think the UK Stewardship Code emphasizes more on the outcomes from ESG activity, but I'm not entirely sure.

Shaun 12 months ago

This is a tricky one. The options all seem relevant to ESG reporting, but I'm not sure which one the 2020 UK Stewardship Code is specifically focused on. I might have to do a quick review of the code to make sure I'm selecting the right answer.

Jettie 12 months ago

Okay, I think I've got it. The question is asking about what the 2020 UK Stewardship Code is calling for more reporting on, and based on the options, it seems like the answer is the outcomes from ESG activity. I'll go with A.

Leanna 1 year ago

Hmm, I'm a bit unsure about this one. The options mention policies, activities, and assertions, but I'm not sure which one the question is specifically asking for. I'll have to think this through carefully.

Ryan 1 year ago

This question seems straightforward - the 2020 UK Stewardship Code is asking for more reporting on the outcomes from ESG activity, so I'll go with option A.

Kristin 2 years ago

I see your point, but I still think A) outcomes from ESG activity is the correct answer.

Amber 2 years ago

I disagree, I believe it's B) policies and activities of signatories.

Kristin 2 years ago

I think the answer is A) outcomes from ESG activity.

Annamaria 2 years ago

Haha, C is a good one! Investment managers' assertions on ESG themes? That's like asking a fox to guard the henhouse.

Thurman 2 years ago

B seems like the obvious choice to me. The UK Stewardship Code is all about the policies and activities of signatories.

Gilma 2 years ago

↳ replying to Thurman

Definitely, B is the right choice. It aligns with the purpose of the UK Stewardship Code in promoting responsible investment practices.

Glenn 2 years ago

↳ replying to Thurman

I think B is the best answer too. It's important for investment managers to disclose their policies and activities related to ESG.

Zena 2 years ago

↳ replying to Thurman

Yes, B is the most relevant option here. It's all about transparency in reporting on their policies and activities.

Charolette 2 years ago

↳ replying to Thurman

I agree, B is the correct choice. The code focuses on the policies and activities of signatories.

Tawna 2 years ago

I think the correct answer is A. We need to see the real outcomes of ESG activities, not just the policies and assertions.

Maryann 2 years ago

↳ replying to Tawna

I think the 2020 UK Stewardship Code is trying to strike a balance between outcomes and policies.

Lindsey 2 years ago

↳ replying to Tawna

Yes, that's true. It's important to have transparency on both outcomes and policies.

Johnathon 2 years ago

↳ replying to Tawna

But don't you think it's also important to know about the policies and activities of the investment managers?

Galen 2 years ago

↳ replying to Tawna

I agree, we need to see the actual outcomes from ESG activities.

CFA Institute ESG-Investing Exam - Topic 2 Question 4 Discussion