A. Expected materiality thresholds for ESG disclosures vary across investors.
B. ESG disclosure requirements from different regulators are aligned.
C. ESG disclosures are uniform across asset classes.
A. cost of capital
B. quality of management
C. level of confidence about future earnings
A. Less social mobility.
B. Higher purchasing power among the middle class.
C. More educational opportunities.
A. Best-in-class investing
B. Green investing
C. Thematic investing
A. apply a lower discount rate to companies that poorly manage social factors.
B. ignore non-financial risks.
C. invest in companies that identify social trends early on and adapt their strategy.
A. Sovereign debt
B. Securitized bonds
C. Corporate bonds
A. Maximize their dependence and impact on nature
B. Evaluate material risks and opportunities for their operations
C. Minimize their interface with nature
A. independent
B. opposed.
C. aligned
A. qualitative approaches only.
B. quantitative approaches only.
C. both qualitative approaches and quantitative approaches.
A. Greenbury Report
B. Sarbanes-Oxley Act
C. Dodd-Frank Act
A. Standard cost-benefit analysis is inadequate to account for the potential downside from climate change.
B. Moral concerns about future climate damages demand the use of a low discount rate.
C. Economic asset value should be assigned to biodiversity to reverse its treatment as a free resource.
A. Corporate governance committee
B. Audit committee
C. Compensation committee
A. Divesting from all fossil fuel assets immediately
B. Ensuring that the shift to a low-carbon economy is socially inclusive and equitable
C. Implementing carbon taxes to penalize polluting industries
A. more educational opportunities.
B. higher purchasing power among the middle class.
C. less social mobility.
A. A standardized methodology for ESG performance.
B. High transparency and disclosure of precise methodologies.
C. Identifying firms or countries that prioritize sustainability.
A. Indirect costs incurred by third parties due to environmental damages caused by a company
B. Direct costs incurred by a company in reducing environmental damages
C. Impairment costs incurred by a company due to regulatory changes
A. geographically.
B. by asset class.
C. by sector.
A. Thematic investment.
B. Philanthropy.
C. Ethical investment.
