CFA Institute Exam Sustainable-Investing Topic 4 Question 8 Discussion

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

Question #: 8
Topic #: 4

[All Sustainable-Investing Questions]

For private equity investments, an especially important ESG factor is:

Aenvironmental.

Bsocial.

Cgovernance.

Show Suggested Answer

Suggested Answer: C

Governance is particularly important in private equity investments, as governance structures directly influence the management and operation of portfolio companies. This helps ensure sustainable practices and mitigate risks. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)

by Eladia at Oct 30, 2025, 03:55 PM

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Tomas

3 days ago

Governance is definitely the most important ESG factor for private equity. Strong corporate governance is key to ensuring responsible and sustainable investments.

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Glen

9 days ago

Hmm, this is a tricky one. I know ESG is important for private equity, but I'm not sure which factor is the most crucial. I'll have to weigh the pros and cons of each option.

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Renato

14 days ago

I think this question is asking about the most important ESG factor for private equity investments. I'll need to think carefully about the differences between environmental, social, and governance factors.

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