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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Lottie

15 days ago

I think B) isn't really greenwashing, just cautious.

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Jackie

20 days ago

A) is definitely greenwashing.

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Hubert

1 month ago

I’m confused about this one. I thought greenwashing was more about false claims, but maybe it could apply to A or C?

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Ashton

2 months 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

2 months 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

2 months ago

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

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