Download CESGA CERTIFIED ENVIRONMENTAL, SOCIAL AND GOVERNANCE ANALYST EXAM 2025 (ACTUAL EXAM) and more Exams Nursing in PDF only on Docsity!
CESGA CERTIFIED ENVIRONMENTAL, SOCIAL AND
GOVERNANCE ANALYST EXAM 2025 (ACTUAL EXAM) |
FEATURING TOPICS SUCH AS ESG INTEGRATION IN
INVESTMENT DECISIONS, CORPORATE GOVERNANCE,
AND SUSTAINABILITY REPORTING STANDARDS
why the green bond market has boomed in recent years? - CORRECT ANSWER >>> bc of the paris agreement in 2015 what makes the global commitments to a low carbon transition? - CORRECT ANSWER >>> the paris agreement in 2015 when is the paris agreement - CORRECT ANSWER >>> 2015 what were the pioneers of green bonds? multilateral development banks or corporate issuers? - CORRECT ANSWER >>> multilateral development banks what do the GBs promise investors? - CORRECT ANSWER >>> environmental benefits why can GB promise investors environmental benefits - CORRECT ANSWER >>> provide a direct link between the financing side and the investment side what is green bond framework? - CORRECT ANSWER >>> a document that clearly articulates the proposed use of proceeds for the bonds is green bond framework provided before or after the issuance? **- CORRECT ANSWER
** before
can green bond framework be assessed by an independent third-party opinion? - CORRECT ANSWER >>> yes when does the sovereign bonds start to emerge? - CORRECT ANSWER >>> 2016, keep increasing untill 2022 what makes the largest portion of global green bond market? - CORRECT ANSWER >>> non financial corporate what is the largest deal in development bank & what is the amount **- CORRECT ANSWER
** EIB, 4.3B USD what is the largest deal in financial corporate & what is the amount **- CORRECT ANSWER ** BOC, 4.7B USD what is the largest deal in government-backed entity & what is the amount - CORRECT ANSWER >>> EU, 6.9B USD what is the largest deal in local government & what is the amount **- CORRECT ANSWER ** province of ontario, 2.1B USD what is the largest deal in non-financial government & what is the amount - CORRECT ANSWER >>> RWE, 2.1B USD what is the largest deal in sovereign & what is the amount - CORRECT ANSWER >>> Republic of italy, 8.2B USD
- engage external reviews when was the first green bond issued? who issued that? - CORRECT ANSWER >>> 2007, by European investment bank to fund climate-related projects what is the total issuance volume of green bond in 2020 - CORRECT ANSWER >>> more than 1T USD when was the first sovereign GB? who issued that? What did they fund? **- CORRECT ANSWER
** 2017, the french treasury issued to fund the country's energy transition project who leads the way in the insurance market? supported by which two regulation and policy? - CORRECT ANSWER >>> Europe, supported by European Green Deal and the regulatory effort (EU Green bond standard) what is the main advantage of Green bonds? - CORRECT ANSWER >>> their risk is no different ** EIB, 4.3B USD what is the largest deal in financial corporate & what is the amount - CORRECT ANSWER >>> BOC, 4.7B USD what is the largest deal in government-backed entity & what is the amount - CORRECT ANSWER >>> EU, 6.9B USD what is the largest deal in local government & what is the amount - CORRECT ANSWER >>> province of ontario, 2.1B USD what is the largest deal in non-financial government & what is the amount - CORRECT ANSWER >>> RWE, 2.1B USD what is the largest deal in sovereign & what is the amount - CORRECT ANSWER >>> Republic of italy, 8.2B USD 2. engage external reviews when was the first green bond issued? who issued that? - CORRECT ANSWER >>> 2007, by European investment bank to fund climate-related projects what is the total issuance volume of green bond in 2020 - CORRECT ANSWER >>> more than 1T USD when was the first sovereign GB? who issued that? What did they fund? - CORRECT ANSWER >>> 2017, the french treasury issued to fund the country's energy transition project who leads the way in the insurance market? supported by which two regulation and policy? - CORRECT ANSWER >>> Europe, supported by European Green Deal and the regulatory effort (EU Green bond standard) what is the main advantage of Green bonds? - CORRECT ANSWER >>> their risk is no different from the general issuer risk what do you call when the return of the ESG bonds is lower than the non-ESG bonds - CORRECT ANSWER >>> greenium Is EU Green bond standard involuntary or voluntary? - CORRECT ANSWER >>> it serves as a voluntary high-quality standard to promote the growth and environmental ambitions in the ** province of ontario, 2.1B USD what is the largest deal in non-financial government & what is the amount - CORRECT ANSWER >>> RWE, 2.1B USD what is the largest deal in sovereign & what is the amount - CORRECT ANSWER >>> Republic of italy, 8.2B USD 2. engage external reviews when was the first green bond issued? who issued that? - CORRECT ANSWER >>> 2007, by European investment bank to fund climate-related projects what is the total issuance volume of green bond in 2020 - CORRECT ANSWER >>> more than 1T USD when was the first sovereign GB? who issued that? What did they fund? - CORRECT ANSWER >>> 2017, the french treasury issued to fund the country's energy transition project who leads the way in the insurance market? supported by which two regulation and policy? - CORRECT ANSWER >>> Europe, supported by European Green Deal and the regulatory effort (EU Green bond standard) what is the main advantage of Green bonds? - CORRECT ANSWER >>> their risk is no different from the general issuer risk what do you call when the return of the ESG bonds is lower than the non-ESG bonds - CORRECT ANSWER >>> greenium Is EU Green bond standard involuntary or voluntary? - CORRECT ANSWER >>> it serves as a voluntary high-quality standard to promote the growth and environmental ambitions in the green bond market when does the EU GBS apply? - CORRECT ANSWER >>> 21 Dec 2024 (Regulation includes a transitional period of 1 year)
what are the four things listed in the Green Bond Standard? - CORRECT ANSWER >>> 1. Voluntary but restrictive
- New requirements
- External reviewers
- Increased transparency what are the details of the 'voluntary but restrictive' under the EUGBs **- CORRECT ANSWER
** all proceeds of EUGBs need to be directed towards taxonomy-aligned activities, for sectors
** more than 1T USD when was the first sovereign GB? who issued that? What did they fund? - CORRECT ANSWER >>> 2017, the french treasury issued to fund the country's energy transition project who leads the way in the insurance market? supported by which two regulation and policy? - CORRECT ANSWER >>> Europe, supported by European Green Deal and the regulatory effort (EU Green bond standard) what is the main advantage of Green bonds? - CORRECT ANSWER >>> their risk is no different from the general issuer risk what do you call when the return of the ESG bonds is lower than the non-ESG bonds - CORRECT ANSWER >>> greenium Is EU Green bond standard involuntary or voluntary? - CORRECT ANSWER >>> it serves as a voluntary high-quality standard to promote the growth and environmental ambitions in the green bond market when does the EU GBS apply? - CORRECT ANSWER >>> 21 Dec 2024 (Regulation includes a transitional period of 1 year) what are the four things listed in the Green Bond Standard? - CORRECT ANSWER >>> 1. Voluntary but restrictive 2. New requirements 3. External reviewers 4. Increased transparency what are the details of the 'voluntary but restrictive' under the EUGBs - CORRECT ANSWER >>> all proceeds of EUGBs need to be directed towards taxonomy-aligned activities, for sectors already covered. 'flexibility pocket' of 15% for sectors not yet covered by the taxonomy and for certain very specific activties. what are the details of the 'new requirement' under the EUGBs - CORRECT ANSWER >>> All the EUGBs need a vertified transition plan to avoid greenwashing, processes to identify adverse impacts, no issuance from countries that are on EUs grey or blacklist of tax havens what are the details of the 'external reviewers' under the EUGBs **- CORRECT ANSWER ** introduction of a registration system and supervisroy framework, fewer conflicts of interest, possible ban to issue EU GBs as sanction mechainism, investors have legal recourse if issuer's failure to comply leads to depreciation of the bond what are the details of the 'increased transparency' under the EUGBs **- CORRECT ANSWER ** enchanced requirements for gas and nuclear, prominent display of information on the first page of the EUGBs factsheet what is the difference between ESG bonds and SLBs - CORRECT ANSWER >>> ESG bonds' emphasis is on the traceability of the use of funds SLBs emphasis is on the attainment of KPIs
what are the sectors contracted by impact bonds - CORRECT ANSWER >>> - social welfare: 79
- employment: 70
- Health: 45
- Educaiton: 45
- criminal justice what is impact investors - CORRECT ANSWER >>> they are willing to cover the upfront costs and assume the performance risk of a social or health programme what is the main critique of SIBs? - CORRECT ANSWER >>> due to the complex financial and contractual mechanisms, SIBs may be an expensive method of operating social programmes describe the risk of SIBs - CORRECT ANSWER >>> due to their contingent payment structure, SIBs are more similar to structured products or equity in terms of investment risk what you should include when you are trying to raise a SIB - CORRECT ANSWER >>> policy sector Date (the period when the project works) Intervention (what you are going to do) Capital raised Target (serice target) Outcome metrics what is one of the initiatives developed to seek to govern global trade in a way that would make it more sustainable - CORRECT ANSWER >>> Voluntary sustainability standards
what is voluntary sustainable standards related to? - CORRECT ANSWER >>> it is related to products and production processes how does UN define VSS - CORRECT ANSWER >>> standards specifying requirements that producers, traders, manufacturers, retailers or service providers may be asked to meet, relating to a wide range of sustainability metrics, including respect for basic human rights, worker health and safety, the environmental impacts of production, community relations, land use planning and others which sector follows the most VSS? - CORRECT ANSWER >>> Agriculture (152) Processed foods (77) Consumer products (75) Textiles (73) when is the new EU Deforestation regulation effective? - CORRECT ANSWER >>> 30 Dec 2024 what is the detail of the new EU deforestation Regulation? - CORRECT ANSWER >>> mandates the due diligence for companies dealing in various products like cattle, cocoa, coffee, palm oil, rubber, soya, and wood to prevent deforestation what is the difference between the new EU Deforestation Regulation and the EU timber regulation? - CORRECT ANSWER >>> it broadens its scope to include other commodities linked to deforestation under the new EU Deforestation Regulation, what should companies do? **- CORRECT ANSWER
** businesses must ensure their products listed in the regulation including beef, leather, chocolate, furniture, palm oil derivatives and paper-based iteams, are 'deforestation-free' when entering or being exported to the EU market Businesses, either operators or traders will be required to ensure that products are 'deforestation-free'
Better Cotton BONSUCRO Cotton made in Africa Fairtrade International Forest Stewardship Council GLOBALG.A.P IFOAM - Organics International Programme for the endorsement of forest certification ProTerra Foundation Rainforest Alliance/Sustainable Agriculture Network Roundtable on Sustainable Palm Oil Round Table on Responsible Soy UTZ what was the amount of funds committed to the energy transition in 2021 - CORRECT ANSWER >>> 700bn which two materials have a high probability of supply constraints by 2030? - CORRECT ANSWER >>> Lithium and Nickel what is the example of 'insufficient captial/investment to prevent the emergence of sustained bottlenecks' - CORRECT ANSWER >>> refineries have shown increasing demand for second- generation biofuels feedstocks - > led to an increase in used cooking oil prices by 90% between mid 2022 and Jan 2023 under which protocal, countries are allowed to trade the allowance of emissions of units not 'used' - CORRECT ANSWER >>> under the article 17 in the Kyoto protocol
how do people call the market that companies used to trade allowance of emissions? - CORRECT ANSWER >>> carbon market what are the two types of carbon markets? - CORRECT ANSWER >>> 1. compliance carbon markets
- voluntary carbon markets what is compliance carbon markets - CORRECT ANSWER >>> mandatory regime with legally binding emissions reduction targets set by governments for firms. Usually operating under the cap-and-trade system offering carbon allowances what are the examples of compliance carbon market? - CORRECT ANSWER >>> EU ETS California Cap and Trade South Korea ETS China ETS what is voluntary carbon markets - CORRECT ANSWER >>> subsidising companies that voluntarily reduce carbon footprint in abatement projects by providing carbon offsets what are the examples of voluntary carbon markets - CORRECT ANSWER >>> gold standard vertified carbon standard Climate action Reserve Plan Vivo EcoAct how many carbon trading schemes are there in the globe? and how many global GHG emissions they are covering - CORRECT ANSWER >>> 36, 18%
what is the imapct level of features that has green building generation? **- CORRECT ANSWER
** 79% what is the imapct level of features that related to on-site renewable energy generation? - CORRECT ANSWER >>> 77% what has an enormous impact on real estate? - CORRECT ANSWER >>> climate change why climate change has an enormous impact on real estate - CORRECT ANSWER >>> climate events cna damage real estate, but also, policy interventions to tackle climate change and to adapt to it can impact huge costs what is a growing concern in real estate? - CORRECT ANSWER >>> risks are not fully captured in property value and home buyers are oblivious of certain risks among PRI signatories, which asset class has the highest proportion of managers not having guidelines describing ESG implementation - CORRECT ANSWER >>> hedge funds How much did the interest in ESG in hedge funds grow from 2018 to 2022 - CORRECT ANSWER >>> 8% to 30% what are the investment strategies that have integrated ESG factors / what are the key strategies for ESG integration - CORRECT ANSWER >>> equity long/short activist-oriented credit strategies what is the detail of equity long/short of investment strategies **- CORRECT ANSWER ** consider ESG factors when taking positions in companies that are deemed overvalued (poor ESG performance could be an additional factor)
what is the detail of activist-oriented of investment strategies - CORRECT ANSWER >>> invest in companies looking to influence their strategy from an ESG perspective looking to maximize value for shareholders. what is the detail of credit strategies of investment strategies **- CORRECT ANSWER
** consider ESG factors when assessing pricing of credit spreads what is the biggest advantage of private debt - CORRECT ANSWER >>> - investor can be selective and specific about the use of proceeds
- investor has more direct controls and ways to engage with debtors what are the particular challenge in the private debt market - CORRECT ANSWER >>> - the nascent data collection
- reporting methods
- reduced resources what is the percentage of the private debt market transactions in Europe were ESG-linked loans in the first three quarters in 2022 - CORRECT ANSWER >>> 25% what is the percentage of asset managers reported having set net-zero targets and percentage of asset managers tracked the carbon intensity in 2023 - CORRECT ANSWER >>> 35% and 75% what are the top climate-related metric tracked by managers - CORRECT ANSWER >>> - carbon intensity of investee companies
- absolute emissions
- forward looking transition metrics (eg target setting)
