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CFA Institute Sustainable-Investing Exam - Topic 1 Question 16 Discussion

For investments in wastewater treatment plants, a significant obstacle is:
B) high capital intensity.
A) lack of demand.
C) availability of unskilled labor.

CFA Institute Sustainable-Investing Exam - Topic 1 Question 16 Discussion

Actual exam question for CFA Institute's Sustainable-Investing exam
Question #: 16
Topic #: 1
[All Sustainable-Investing Questions]

For investments in wastewater treatment plants, a significant obstacle is:

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Suggested Answer: B

Wastewater treatment plants are capital-intensive projects, requiring significant investment upfront for infrastructure and technology, which can be a major barrier to entry. (ESGTextBook[PallasCatFin], Chapter 3, Page 153)


by Leatha at May 30, 2026, 06:44 PM

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Roselle
2 days ago
I’m leaning towards high capital intensity as the answer, but I could be mixing it up with another topic we covered.
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Essie
7 days ago
I think we had a practice question about labor availability in infrastructure projects, but I feel like capital intensity is more relevant here.
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Gussie
12 days ago
I remember discussing capital intensity in class, but I'm not entirely sure if it's the biggest obstacle.
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