CFA Institute ESG-Investing Exam - Topic 7 Question 24 Discussion

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

Question #: 24
Topic #: 7

[All ESG-Investing Questions]

A common characteristic of the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks is that they both:

Apermit only green investments.

Bpermit fossil fuel investments as part of a transition process.

Crequire a reduction in carbon emissions intensity in the starting year.

Show Suggested Answer

Suggested Answer: C

by Lorenza at Mar 05, 2026, 12:10 AM

Limited Time Offer

25%

Off

Get Premium ESG-Investing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Daniel

3 days ago

They both allow fossil fuel investments, right?

upvoted 0 times

...

Winfred

9 days ago

I thought both benchmarks were focused on green investments only, but now I'm questioning if they allow for fossil fuels too.

upvoted 0 times

...

Garry

14 days ago

I feel like I've seen a question similar to this before, and I think the answer was about permitting fossil fuel investments as part of a transition.

upvoted 0 times

...

Salley

19 days ago

I remember studying that they require a reduction in carbon emissions intensity, but I can't recall if that's specifically for the starting year or just overall.

upvoted 0 times

...

Shayne

24 days ago

I think both benchmarks allow for some level of fossil fuel investments, but I'm not entirely sure if that's just for transition purposes or not.

upvoted 0 times

...