Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

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What is the aim of ESG investing?

To focus exclusively on financial returns

To align investments with ethical and sustainable goals

The aim of ESG investing is to align investments with ethical and sustainable goals, which reflects a growing recognition of the interconnectedness between financial performance and broader societal issues. This approach integrates environmental, social, and governance factors into the investment decision-making process. By considering how corporations impact the environment, interact with stakeholders, and maintain transparent governance practices, investors seek to not only generate financial returns but also contribute positively to society and the planet.

This dual focus allows investors to support businesses that are committed to sustainable practices, thereby fostering long-term value creation. In today’s investment landscape, the importance of responsible investing is increasingly emphasized, as it provides a framework for assessing risks and opportunities that traditional financial metric analyses might overlook.

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To minimize shareholder engagement

To avoid regulatory scrutiny

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