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

Limited Time Offer

25%

Off

Get Premium ESG-Investing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kimberlie

20 hours ago

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

upvoted 0 times

...

Sherell

7 days 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.

upvoted 0 times

...

Dan

8 days 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.

upvoted 0 times

...

Dawne

13 days 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.

upvoted 0 times

...