Vce ESG-Investing Questions Latest

Theclimate change transition(e.g., shift from fossil fuels to renewable energy) often results injob losses, reskilling needs, and economic displacement for workers.

Pollution (A) and water scarcity (B) affect public health but do not directly impact worker employment as much as climate policy shifts.

References:

UNFCCC Just Transition & Labor Market Report

International Labour Organization (ILO) Climate Workforce Report

CFA Institute ESG Social Risks Framework

========

Investment mandates should reflectboth ESG factors and their prioritization, ensuring alignment withclient beliefs, risk tolerance, and sustainability goals.

Materiality alone (A) is not enough, andrationale (B) is part of the process but not the defining criterionfor structuring investment mandates.

References:

Principles for Responsible Investment (PRI) ESG Investment Mandates Guide

CFA Institute ESG Investment Governance Framework

Morningstar ESG Portfolio Integration Report

========

Asset owners must integrateESG factors into both strategic (long-term) and tactical (short-term) asset allocationsto ensuresustainability objectives are met.

References:

CFA Institute ESG Investment Policy Guide

Principles for Responsible Investment (PRI) ESG Asset Allocation Report

MSCI ESG Strategic & Tactical Allocation Study

Thecircular economyfocuses onreducing waste and maximizing resource efficiency.Sustainable resource use (B)aligns directly with circular economy principles, as it promotesrecycling, renewable materials, and closed-loop production systems.

Pollution (A) and climate change (C) are environmental risks but do notdirectlysupport the transition to a circular economy.

References:

Taskforce on Nature-Related Financial Disclosures (TNFD) Framework

Ellen MacArthur Foundation – Circular Economy Principles

UN Sustainable Development Goal 12 (Responsible Consumption & Production)