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CFA Institute Exam ESG-Investing Topic 3 Question 11 Discussion

Actual exam question for CFA Institute's ESG-Investing exam
Question #: 11
Topic #: 3
[All ESG-Investing Questions]

According to the framework of the Task Force on Climate-Related Financial Disclosures (TCFD): the formula for carbon intensity at the portfolio level weighs emissions based upon an issuer's:

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Suggested Answer: C

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)


Contribute your Thoughts:

Lillian
1 months ago
I bet the correct answer involves some kind of 'green accounting' voodoo magic. These TCFD folks are a mysterious bunch.
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Cora
23 hours ago
B) revenue.
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Arletta
22 days ago
A) profit.
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Kimberlie
1 months ago
B) revenue, definitely. If they're basing it on profit, that would just reward the companies cooking the books!
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Sherell
1 months ago
Hmm, I'm torn between B) and C). Guess I'll have to do some more research on the TCFD framework to be sure.
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Dan
2 months ago
I'm going with C) net assets. That seems like a more comprehensive way to measure the issuer's overall financial standing and impact.
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Ronald
11 days ago
I think B) revenue might also be a good indicator of the issuer's financial performance.
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Ronald
1 months ago
I agree, C) net assets would give a better understanding of the issuer's financial impact.
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Dawne
2 months ago
I think it's B) revenue. Makes sense to weigh emissions based on an issuer's revenue, since that's a better indicator of the scale of their operations.
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Rory
2 months ago
I'm not sure, but I think it might be C) net assets because it represents the value of the company's assets.
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Paris
2 months ago
I agree with Brynn, because revenue reflects the scale of operations and therefore the emissions impact.
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Brynn
2 months ago
I think the answer is B) revenue.
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