How PremiumVCEDump Make its CFA Institute Sustainable-Investing Exam Questions Engaging?
How PremiumVCEDump Make its CFA Institute Sustainable-Investing Exam Questions Engaging?
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CFA Institute Sustainable Investing Certificate(CFA-SIC) Exam Sample Questions (Q44-Q49):
NEW QUESTION # 44
Which of the following countries has a joint audit requirement that all public interest entities must engage at least two independent accounting firms to perform an annual audit?
- A. Germany
- B. France
- C. United Kingdom
Answer: B
Explanation:
France is the only major economy that mandates joint audits for public interest entities (PIEs), requiring two independent auditing firms to perform the audit.
Why France?
The French Commercial Code (Article L. 823-1) enforces mandatory joint audits to enhance audit quality and reduce financial risks.
Why not Germany or the UK?
Germany and the UK do not require joint audits.
While the UK considered joint audits, they remain voluntary rather than mandatory.
References:
French Commercial Code, Article L. 823-1
European Commission Report on Joint Audits (2021)
NEW QUESTION # 45
Which of the following sectors receives the highest investment from the Inflation Reduction Act of 2022 (IRA)?
- A. Clean transport
- B. Clean electricity
- C. Clean energies
Answer: C
Explanation:
The Inflation Reduction Act (IRA) of 2022 is the largest U.S. investment in climate action, focusing on clean energy incentives, tax credits, and subsidies.
Why A (Clean energies) is correct:
The IRA allocates $369 billion toward energy security and climate change initiatives, with the majority going to clean energy technologies such as:
Renewable energy (solar, wind, geothermal)
Energy storage systems
Hydrogen energy and biofuels
Why not B or C?
B (Clean transport) receives significant investment (EV tax credits, charging infrastructure) but is not the largest category.
C (Clean electricity) benefits indirectly, but the IRA prioritizes energy sources rather than distribution.
References:
U.S. Department of Energy: IRA Funding Breakdown (2023)
Congressional Budget Office: Economic Impact of the Inflation Reduction Act (2022)
NEW QUESTION # 46
The main growth driver of greenhouse gas (GHG) emissions is:
- A. Carbon dioxide from fossil fuels and industry
- B. Methane from the melting permafrost
- C. Carbon dioxide from land use, land-use change, and forestry
Answer: A
Explanation:
Thelargest driverof global greenhouse gas (GHG) emissions iscarbon dioxide (CO#) from fossil fuels and industry, accounting for approximately75% of total GHG emissions. This includes emissions from coal, oil, and natural gas combustion for energy, manufacturing, and transportation.
While land-use change (C) contributes significantly (~10-15%), and methane (A) is a potent GHG,CO# from fossil fuels remains the dominant factordriving climate change.
References:
IPCC Sixth Assessment Report (2023)
International Energy Agency (IEA) Global CO# Emissions Report
UNEP Emissions Gap Report
========
NEW QUESTION # 47
Brown divestment:
- A. screens out fossil fuels from portfolios.
- B. involves publicly traded firms exiting polluting businesses by sales to third parties.
- C. invests only in companies with a positive environmental impact.
Answer: B
Explanation:
Brown divestmentrefers to companiesactively selling off polluting assets(like coal plants or oil reserves) to third parties, thus removing these "brown" businesses from their balance sheets. CFA materials explain this as acorporate-level divestment strategy, distinct from investor portfolio screening (option A) or proactive investment in environmental solutions (option B).
NEW QUESTION # 48
Jurisdictions are most likely to impose extraterritorial laws in relation to:
- A. bribery and corruption
- B. paying suppliers appropriately and promptly.
- C. upholding high standards in health and safety
Answer: A
Explanation:
Jurisdictions are most likely to impose extraterritorial laws in relation to bribery and corruption.
Extraterritorial laws are those that have legal force beyond the borders of the issuing country, and they are often applied to combat global issues such as corruption.
Global Standards: Countries impose extraterritorial laws to ensure that their nationals and corporations comply with anti-bribery and anti-corruption standards, regardless of where they operate. This helps maintain ethical business practices internationally.
Regulatory Frameworks: Prominent examples of extraterritorial laws include the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, which apply to activities conducted abroad by U.S. and UK entities, respectively. These laws aim to prevent and penalize bribery and corruption on a global scale.
Enforcement and Compliance: By implementing extraterritorial anti-corruption laws, jurisdictions can enforce compliance and hold companies accountable for corrupt practices in foreign countries, promoting transparency and integrity in international business.
References:
MSCI ESG Ratings Methodology (2022) - Discusses the role of extraterritorial laws in combating bribery and corruption and their impact on global business practices.
ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the significance of extraterritorial regulations in maintaining ethical standards and preventing corruption in international operations.
NEW QUESTION # 49
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