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CFA Institute Sustainable-Investing Exam - Topic 1 Question 15 Discussion

Which of the following ESG integration techniques is an example of policy engagement? An investor:
B) Responding to a regulator's public consultation on ESG issues
A) Embedding ESG into their strategic asset allocation program
C) Voting on resolutions at an investee company's annual general meeting

CFA Institute Sustainable-Investing Exam - Topic 1 Question 15 Discussion

Actual exam question for CFA Institute's Sustainable-Investing exam
Question #: 15
Topic #: 1
[All Sustainable-Investing Questions]

Which of the following ESG integration techniques is an example of policy engagement? An investor:

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Suggested Answer: B

Policy engagement refers to efforts by investors to influence regulatory frameworks. An example of this would be responding to a regulator's public consultation on ESG issues, therebycontributing to the development of ESG policies that can drive broader change across markets and industries.ESG Reference: Chapter 6, Page 280 - Engagement and Stewardship in the ESG textbook.


by Leontine at May 14, 2026, 03:56 PM

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Alecia
2 days ago
I feel like B makes the most sense, but I’m not completely sure. I remember discussing how engagement can take many forms, and this one feels right.
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Della
7 days ago
I’m a bit confused. I thought embedding ESG into asset allocation was more about strategy than policy. But I could see how B fits the definition.
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Herschel
12 days ago
I remember practicing a question similar to this, and I think voting on resolutions is more about corporate governance than policy engagement. So, I’m not sure if C is the right answer.
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Luis
2 months ago
I think policy engagement is about interacting with regulators, so I’m leaning towards B. It seems like the most direct way to influence policy.
upvoted 0 times
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