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

Focusing solely on governmental bonds is not a typical approach in responsible investing because responsible investing encompasses a broader scope that includes various asset classes and investment strategies aimed at generating positive social, environmental, and ethical outcomes. Responsible investors often seek to understand the environmental, social, and governance (ESG) factors that affect a range of investments, including equities, corporate bonds, and alternative assets, rather than exclusively concentrating on government securities.

The other approaches described are commonly practiced in responsible investing. Excluding companies with negative social impacts reflects a strategy of avoiding investments that violate ethical standards or contribute to harmful practices. Investing in environmentally sustainable projects demonstrates a commitment to supporting initiatives that foster ecological stewardship. Engaging with companies to improve their ESG practices represents a proactive strategy where investors influence corporate behavior in a positive direction. All these methods encompass a broader commitment to socially responsible principles, which is not achieved by focusing solely on one type of investment like governmental bonds.