Understanding ESG: Part 5 test

1. How has investment success traditionally been assessed? Risk Return Risk and return Responsibleness

2. What is a likely outcome to the community’s determination to serve the greater good if ESG impact cannot be verified? Increase Reduce Completely disappear No change

3. Which category of funds have a “sustainable investment objective”? Article 6 Article 7 Article 8 Article 9

4. According to Morningstar research, what percentage of investment funds in the EU satisfied the Article 9 requirements? 3% 6% 9% 12%

5. What is the primary goal of the EU’s Sustainable Finance Disclosure Regulation? To encourage ESG investment To simplify the concept of ESG investment To encourage greater disclosure around sustainability To encourage less disclosure around sustainability

6. What is one of the key concerns that increased ESG regulation might lead to? Worse ESG outcomes Greenwashing Less investment Overinvestment

7. According to a study by McKinsey & Company, what percentage of investors agree that there is insufficient standardisation when it comes to sustainability reporting? 12% 38% 57% 89%

8. Which of the following is not one of the four major ESG rating agencies? MSCI RepRisk Sustainalytics FE fundinfo

9. In what way might investments help companies drive positive and lasting change? Direct engagement Larger investment Smaller investment No engagement

10. What is not one of the three prerequisites identified by Invesco for dealing with investor scepticism around ESG impact? Clear investment objectives Strong performance Measurable investment outcomes Clear and concise reporting