CFA Institute ESG-Investing Exam - Topic 8 Question 25 Discussion

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

Question #: 25
Topic #: 8

Which of the following is an example of competence greenwashing?

AA company's board overstating their ESG expertise

BA company that is unwilling to reveal its strides toward more sustainable practices for fear of misinterpretation

CA company providing an incomplete picture of its environmental impact by overemphasizing carbon emissions while ignoring other factors such as toxicity

Show Suggested Answer

Suggested Answer: A

by Socorro at Apr 05, 2026, 09:44 AM

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Ashton

22 hours ago

I feel like C makes the most sense because it talks about presenting an incomplete picture, which is definitely misleading.

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Noel

6 days ago

I’m not entirely sure, but I remember a practice question that mentioned companies hiding their practices. Could that relate to B?

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Zita

11 days ago

I think competence greenwashing is when a company exaggerates its expertise, so I’m leaning towards A.

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