CFA Institute Updated Sustainable-Investing Exam Questions and Answers by jannat

McKinsey & Company emphasizes transparency as part of an asset manager’s tools and processes. Effective tools and processes help ensure that ESG data is accurately collected, analyzed, and reported, making the decision-making process clear and accountable.ESG Reference: Chapter 7, Page 325 - ESG Analysis, Valuation & Integration in the ESG textbook.

Retail investors have historically been slower in adopting ESG principles compared to institutional investors. This can be attributed to lower awareness and the complexity of ESG information. Institutional investors are often more engaged due to client demand and regulatory pressures. (ESGTextBook[PallasCatFin], Chapter 2, Page 58)

Under the EU Taxonomy, companies must ensure that their activities "do no significant harm" to any environmental objective, while aligning with at least one environmental objective. (ESGTextBook[PallasCatFin], Chapter 3, Page 123)

Wastewater treatment plants are capital-intensive projects, requiring significant investment upfront for infrastructure and technology, which can be a major barrier to entry. (ESGTextBook[PallasCatFin], Chapter 3, Page 153)