CFA Institute Exam ESG-Investing Topic 3 Question 11 Discussion

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

Question #: 11
Topic #: 3

According to the framework of the Task Force on Climate-Related Financial Disclosures (TCFD): the formula for carbon intensity at the portfolio level weighs emissions based upon an issuer's:

Aprofit.

Brevenue.

Cnet assets

Show Suggested Answer

Suggested Answer: C

Monitoring focuses on tracking a company's performance and ensuring that the investment aligns with ESG objectives, leading to more efficient capital allocation based on data-driven insights. (ESGTextBook[PallasCatFin], Chapter 6, Page 283)

by Rasheeda at Mar 03, 2025, 07:14 PM

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Lillian

2 months ago

I bet the correct answer involves some kind of 'green accounting' voodoo magic. These TCFD folks are a mysterious bunch.

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Javier

14 days ago

C) net assets

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Cora

17 days ago

B) revenue.

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Arletta

1 months ago

A) profit.

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Kimberlie

2 months ago

B) revenue, definitely. If they're basing it on profit, that would just reward the companies cooking the books!

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Sherell

2 months ago

Hmm, I'm torn between B) and C). Guess I'll have to do some more research on the TCFD framework to be sure.

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Dan

2 months ago

I'm going with C) net assets. That seems like a more comprehensive way to measure the issuer's overall financial standing and impact.

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Ronald

28 days ago

I think B) revenue might also be a good indicator of the issuer's financial performance.

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Ronald

2 months ago

I agree, C) net assets would give a better understanding of the issuer's financial impact.

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Dawne

2 months ago

I think it's B) revenue. Makes sense to weigh emissions based on an issuer's revenue, since that's a better indicator of the scale of their operations.

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