Question #3
Reading: Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis
PDF File: Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis.pdf
Page: 1
Status: Unattempted
Correct Answer: A
Question
Regarding the process of evaluating ESG risk exposures and investment opportunities related to a company, it is least likely that ESG integration will be used in:
Answer Choices:
A. fixed-income analysis to identify upside opportunities
B. equity analysis to identify downside risk
C. fixed-income analysis to identify downside risk
Explanation
In fixed-income analysis, ESG integration is generally focused on identifying downside risk.
In equity analysis, ESG integration is used to both identify downside risks and potential
opportunities.