CFA Institute ESG-Investing Dumps Updated Apr 19, 2025 WIith 462 Questions
View All ESG-Investing Actual Free Exam Questions Apr 19, 2025 Updated
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NEW QUESTION # 135
When assessing credit and ESG ratings, which of the following statements is most accurate?
- A. The correlation between ESG ratings among rating providers is high
- B. The correlation between credit ratings among credit rating agencies (CRAs) is low
- C. The correlation between country ESG risk and credit ratings is high
Answer: C
Explanation:
There is a high correlation between country ESG risk and credit ratings. Countries with higher ESG risks typically face higher borrowing costs and lower credit ratings due to the perceived increased risk associated with environmental, social, and governance factors. This correlation reflects the importance of ESG factors in assessing the overall creditworthiness and financial stability of countries.
NEW QUESTION # 136
When searching for an asset manager with an ESG approach, in the request for proposal (RFP) an institutional asset owner would most appropriately ask:
- A. which broad market index the asset manager tracks
- B. detailed questions on specific portfolio holdings of the asset manager
- C. if the asset manager aims for positive, measurable ESG outcomes beyond financial returns
Answer: C
Explanation:
When searching for an asset manager with an ESG approach, it is essential for an institutional asset owner to understand whether the asset manager's strategy aligns with their sustainability objectives. The most appropriate question to ask in the RFP is whether the asset manager aims for positive,measurable ESG outcomes beyond financial returns. This question assesses the commitment to achieving concrete ESG results, which is a critical factor in evaluating the manager's integration of ESG factors into their investment process.
Detailed questions about portfolio holdings or which broad market index the manager tracks are less relevant to assessing the ESG integration.
NEW QUESTION # 137
Compared to other ESG strategies, fully integrated ESG strategies tend to feature:
- A. similarly concentrated positions.
- B. more concentrated positions.
- C. less concentrated positions.
Answer: B
Explanation:
Fully integrated ESG strategies tend to have more concentrated positions as they focus on companies with strong ESG practices, often limiting the investment universe to a smaller selection of high-performing companies. (ESGTextBook[PallasCatFin], Chapter 8, Page 451)
NEW QUESTION # 138
Globalization has led to a reduction in:
- A. social structural inequality
- B. market efficiency
- C. regulation
Answer: A
Explanation:
Globalization has contributed to a reduction in social structural inequality. By integrating economies and increasing access to global markets, globalization has created opportunities for economic growth and development in many regions, helping to reduce poverty and inequality.
Reduction in social structural inequality (C): Globalization has enabled the transfer of technology, capital, and skills across borders, leading to job creation and economic development in less developed regions. This has helped to reduce structural inequalities by providing more equal opportunities for people in different parts of the world.
Regulation (A): Globalization has often led to an increase in regulation, particularly in areas such as trade, finance, and environmental standards, as countries cooperate to manage global issues.
Market efficiency (B): Globalization typically enhances market efficiency by increasing competition, improving resource allocation, and fostering innovation.
Reference:
CFA ESG Investing Principles
Economic studies on the impacts of globalization
NEW QUESTION # 139
ESG integration should be considered as part of:
- A. both systematic strategies and discretionary strategies.
- B. discretionary strategies only.
- C. systematic strategies only.
Answer: A
Explanation:
ESG integration can be applied to both systematic and discretionary strategies, as it enhances traditional investment processes by incorporating ESG factors to improve risk management and long-term returns. (ESGTextBook[PallasCatFin], Chapter 7, Page 319)
NEW QUESTION # 140
Corporate governance in the UK is notable for:
- A. its requirement for joint auditors.
- B. the prominence of board behavior guidelines in its Corporate Governance Code.
- C. the existence of double voting rights for some shareholders.
Answer: B
Explanation:
Corporate governance in the UK is notable for its comprehensive guidelines and principles that promote effective board behavior and accountability.
1. Board Behavior Guidelines: The UK Corporate Governance Code places a strong emphasis on board behavior, setting out clear guidelines for the roles and responsibilities of directors. These guidelines aim to ensure that boards act in the best interests of the company and its stakeholders, promoting transparency, accountability, and ethical behavior.
2. Joint Auditors and Double Voting Rights:
Joint Auditors: The requirement for joint auditors is more common in other jurisdictions, such as France, rather than in the UK.
Double Voting Rights: Double voting rights for some shareholders are not a feature of UK corporate governance but can be found in other markets, like France, where long-term shareholders may be granted additional voting rights as an incentive for loyalty.
Reference from CFA ESG Investing:
UK Corporate Governance Code: The CFA Institute highlights the importance of the UK Corporate Governance Code, which includes detailed guidelines on board behavior to ensure that directors fulfill their duties effectively and ethically.
Board Responsibilities: The UK Corporate Governance Code emphasizes the need for boards to maintain high standards of conduct, accountability, and governance practices, reflecting the prominence of board behavior guidelines.
NEW QUESTION # 141
Avoiding long term transition risk can most likely be achieved by:
- A. reducing exposure to companies exposed to extreme weather events
- B. divesting highly carbon-intensive investments in the energy sector.
- C. investing in companies with stranded assets.
Answer: B
Explanation:
Avoiding long-term transition risk can most likely be achieved by divesting highly carbon-intensive investments in the energy sector. Here's why:
Long-term Transition Risk:
Transition risk refers to the financial risks associated with the transition to a low-carbon economy. Carbon-intensive investments are particularly vulnerable as regulations and market preferences shift towards cleaner energy.
Divesting from these investments reduces exposure to potential losses from stranded assets and regulatory penalties.
This strategy aligns with the need to mitigate long-term transition risks, ensuring portfolio resilience as the global economy transitions to sustainable energy sources.
CFA ESG Investing Reference:
The CFA ESG Investing curriculum discusses strategies for managing transition risks, highlighting divestment from carbon-intensive sectors as an effective approach to mitigate long-term risks and align with sustainable investment practices.
NEW QUESTION # 142
Which of the following is most likely a reason for concern regarding the quality of a company's ESG disclosures?
- A. There is written commitment to improve future ESG disclosure
- B. Competitors have stronger disclosure standards
- C. The inclusion of audited ESG data
Answer: B
Explanation:
One of the main concerns regarding the quality of a company's ESG disclosures is the comparison to competitors' standards. If a company's competitors have stronger and more transparent disclosure standards, it can indicate that the company may be lagging in its ESG practices and reporting quality. This can affect investors' perception of the company's commitment to ESG principles and may highlight potential risks associated with the company's operations.
According to the CFA ESG Investing curriculum, ESG data can often be incomplete, unaudited, and incomparable between companies due to different reporting methodologies. The lack of standardized reporting can make it challenging for investors to assess and compare ESG performance accurately.
Reference:
"ESG data can be incomplete, unaudited, unavailable, or incomparable between companies due to different reporting methodologies. This makes assessment of ESG factors impossible in certain situations".
NEW QUESTION # 143
A challenge to ESG integration at the asset allocation level when using mean-variance optimization is that it:
- A. requires specialist knowledge to make informed judgments about future risk.
- B. is highly sensitive to baseline assumptions
- C. could introduce an additional source of estimation errors due to the need for dynamic rebalancing
Answer: B
Explanation:
A challenge to ESG integration at the asset allocation level when using mean-variance optimization is that it is highly sensitive to baseline assumptions. Here's why:
* Baseline Assumptions:
* Mean-variance optimization relies on assumptions about expected returns, risks, and correlations among different asset classes. These assumptions are often based on historical data, which may not accurately predict future performance, especially when integrating ESG factors .
* Sensitivity:
* Small changes in the baseline assumptions can lead to significantly different portfolio allocations.
This sensitivity can be problematic when integrating ESG factors, as the data and methodologies for assessing ESG risks and opportunities are still evolving and can introduce additional variability .
* Dynamic Rebalancing:
* While dynamic rebalancing can introduce estimation errors, the primary challenge remains the sensitivity to initial assumptions. Specialist knowledge is essential for making informed judgments about future risks, but this is secondary to the issue of assumption sensitivity .
CFA ESG Investing References:
* The CFA ESG Investing curriculum covers the complexities of integrating ESG factors into asset allocation models, particularly the challenges posed by the sensitivity of mean-variance optimization to baseline assumptions .
NEW QUESTION # 144
Regarding ESG issues, which of the following sets the tone for the investment value chain?
- A. Asset managers
- B. Investment consultants
- C. Asset owners
Answer: C
Explanation:
Regarding ESG issues, asset owners set the tone for the investment value chain. Asset owners, such as pension funds, endowments, and insurance companies, have significant influence over the incorporation of ESG factors in investment strategies due to their large capital allocations and long-term investment horizons.
* Investment Mandates: Asset owners often set ESG-related mandates and guidelines for asset managers, influencing how ESG factors are integrated into investment decisions. Their requirements shape the strategies and practices of the entire investment value chain.
* Demand for ESG Integration: By prioritizing ESG considerations, asset owners drive demand for
* sustainable investment products and services. This, in turn, encourages asset managers and investment consultants to develop and offer ESG-integrated solutions.
* Leadership Role: Asset owners play a leadership role in promoting sustainable investing practices.
Their commitment to ESG issues can lead to broader adoption and standardization of ESG integration across the investment industry.
References:
* MSCI ESG Ratings Methodology (2022) - Highlights the critical role of asset owners in setting ESG priorities and influencing the investment value chain.
* ESG-Ratings-Methodology-Exec-Summary (2022) - Discusses the impact of asset owners' ESG mandates on the practices of asset managers and the broader investment ecosystem
NEW QUESTION # 145
In the European Union, publicly listed firms are obliged to change auditors at least every:
- A. 10 years
- B. 5 years
- C. 20 years
Answer: A
Explanation:
In the European Union, publicly listed firms are required to change their auditors at least every 10 years. This regulation is part of the EU's statutory audit reform, which aims to enhance the independence of auditors and the quality of audits. The rotation requirement is intended to prevent long-term relationships between auditors and clients that could compromise the auditor's objectivity.
* Regulatory requirement: The EU Audit Regulation (Regulation (EU) No 537/2014) mandates that public-interest entities, including publicly listed firms, must rotate their statutory auditors or audit firms after a maximum of 10 years.
* Objective: This measure is designed to reduce the risk of conflicts of interest and ensure a fresh perspective on the firm's financial statements.
References:
* EU Audit Regulation (Regulation (EU) No 537/2014)
* CFA ESG Investing Principles
NEW QUESTION # 146
In contrast to active investors, passive investors are most likely to:
- A. start their engagement process by writing a letter to all the companies impacted by a certain ESG issue
- B. focus their engagement on companies identified as underperformers or ones that trigger other financial or ESG metrics
- C. seek a direct discussion with senior management and then the board
Answer: A
Explanation:
In contrast to active investors, passive investors are most likely to start their engagement process by writing a letter to all the companies impacted by a certain ESG issue.
* Passive Investment Approach: Passive investors, such as those managing index funds, typically hold a wide array of companies within their portfolios. Direct engagement with each company individually can be resource-intensive.
* Broad Engagement Strategy: Writing a letter to all companies affected by a specific ESG issue allows passive investors to address concerns across their entire portfolio efficiently. This approach ensures that all relevant companies are informed of the investor's expectations and concerns regarding the ESG issue.
* Active Investors: In contrast, active investors may prioritize direct discussions with senior management and the board (A) or focus on specific underperforming companies (C) for more targeted engagement.
CFA ESG Investing References:
The CFA Institute's resources on engagement strategies for investors distinguish between the broad, systematic engagement methods used by passive investors and the more targeted, intensive approaches favored by active investors. This helps ensure effective ESG integration across different investment styles.
NEW QUESTION # 147
The debate around regulating the social media industry is based on risks associated with:
- A. digital disruption
- B. big data
- C. embedded systems
Answer: B
Explanation:
The debate around regulating the social media industry is based on risks associated with big data.
* Big data (A): The social media industry collects and processes vast amounts of data from its users. The concerns about privacy, data security, and the use of this data for targeted advertising, misinformation, and other purposes are central to the debate on regulating the industry.
* Digital disruption (B): While digital disruption is relevant, it is not the primary focus of the regulatory debate, which is more concerned with the implications of big data.
* Embedded systems (C): Embedded systems are more related to hardware and IoT devices, not directly to the core issues in the social media regulatory debate.
References:
* CFA ESG Investing Principles
* Discussions on social media regulation and data privacy
NEW QUESTION # 148
Which of the following is a success factor characteristic of investor collaboration? Investors should have:
- A. objectives that are linked to material strategic and governance issues.
- B. clear leadership with appropriate relationships, skills, and knowledge.
- C. an engagement approach that is bespoke to the target company.
Answer: B
Explanation:
Effective investor collaboration is crucial for achieving meaningful outcomes in ESG engagements and initiatives. Clear leadership with appropriate relationships, skills, and knowledge is a key characteristic of successful investor collaboration.
1. Clear Leadership: Having clear leadership ensures that the collaboration is well-coordinated and directed towards common goals. Leaders with the right relationships, skills, and knowledge can navigate complex stakeholder environments, build consensus, and drive the collaboration forward.
2. Engagement Approach (Option A): While having an engagement approach that is bespoke to the target company is important, it is more specific to individual engagements rather than a general characteristic of investor collaboration success.
3. Objectives Linked to Strategic Issues (Option C): Objectives that are linked to material strategic and governance issues are important for the focus and relevance of the collaboration. However, clear leadership is fundamental to ensuring that these objectives are effectively pursued and achieved.
Reference from CFA ESG Investing:
Investor Collaboration: The CFA Institute discusses the importance of leadership in investor collaboration, highlighting that successful collaborations often depend on leaders who can leverage their expertise and relationships to achieve common goals.
Characteristics of Successful Collaborations: Understanding the critical success factors, such as clear leadership, helps investors design and participate in effective collaborative initiatives that can drive positive ESG outcomes.
NEW QUESTION # 149
According to market reviews conducted by the Global Sustainable Investment Alliance at the start of 2022, which of the following regions has the largest proportion of sustainable investing relative to total managed assets?
- A. Europe
- B. United States
- C. Canada
Answer: A
Explanation:
Europe has the largest proportion of sustainable investing relative to total managed assets. The region has been a leader in ESG integration due to strong regulatory frameworks, such as the European Union's Sustainable Finance Disclosure Regulation (SFDR), and increasing investor demand for sustainable products.
ESG Reference: Chapter 2, Page 58 - The ESG Market in the ESG textbook.
NEW QUESTION # 150
Which of the following statements about social trends is most accurate?
- A. Companies within a sector are equally exposed to social trends
- B. The importance of a social trend depends on a country's regulatory framework
- C. Social trends have a similar impact across sectors in developed countries
Answer: B
Explanation:
* Regulatory Framework Influence:
* Different countries have varying levels of regulation and enforcement related to social issues such as labor rights, health and safety, and social equity.
* According to the CFA Institute, the regulatory environment in a country can significantly impact
* how social trends affect companies operating within that jurisdiction. For example, stringent labor laws in one country may lead to higher compliance costs for companies, while more lenient regulations in another country might result in fewer social obligations for businesses.
* Examples of Regulatory Impact:
* Labor Laws: Countries with strong labor protections (e.g., Europe) often require companies to provide better working conditions, which can influence company policies and operational costs.
* Health and Safety Regulations: Stringent health and safety standards in countries like the US can lead to higher compliance costs but also improve employee well-being and productivity, impacting overall company performance.
* Sector-Specific Impacts:
* Social trends do not impact all sectors equally even within the same country. For instance, manufacturing sectors might be more affected by labor laws compared to the tech sector.
* The CFA Institute notes that investors must consider sector-specific risks and opportunities when analyzing social trends and their potential impacts on different industries.
* Global vs. Local Trends:
* While some social trends like gender equality or human rights are global, their implementation and importance can vary based on local regulatory frameworks.
* For example, gender diversity initiatives may be more advanced in countries with progressive gender policies, influencing company practices and investor perceptions in those regions.
* Research and Methodology:
* The CFA Institute provides methodologies for assessing the impact of social trends on investments, emphasizing the need to understand local regulatory environments and their implications for ESG factors.
* Studies show that companies in highly regulated environments tend to have more robust social practices, which can influence their attractiveness to ESG-focused investors.
References:
* CFA Institute, "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals."
* MSCI ESG Research, which includes analyses of how regulatory frameworks affect social issues and company performance.
NEW QUESTION # 151
Which of the following asset classes has the lowest degree of ESG integration?
- A. Emerging markets corporate debt
- B. Investment grade corporate debt
- C. Sovereign debt
Answer: C
Explanation:
Sovereign debt has the lowest degree of ESG integration compared to investment-grade corporate debt and emerging markets corporate debt. This is due to several factors:
Limited ESG Data: There is generally less ESG data available for sovereign issuers compared to corporate issuers. Sovereign ESG assessments rely on country-level indicators, which may not be as detailed or specific as corporate ESG disclosures.
Complexity of ESG Factors: The ESG factors affecting sovereign debt are more complex and broader in scope, encompassing issues like political stability, governance, human rights, and environmental policies. This complexity makes it challenging to integrate ESG factors effectively.
Market Practices: The integration of ESG factors into sovereign debt investment processes is less advanced compared to corporate debt markets. While there is growing interest, the methodologies and frameworks for assessing sovereign ESG risks are still developing.
Reference:
MSCI ESG Ratings Methodology (2022) - Discusses the challenges and current state of ESG integration across different asset classes, highlighting the relative lag in sovereign debt.
ESG-Ratings-Methodology-Exec-Summary (2022) - Provides insights into the varying degrees of ESG integration in different asset classes and the factors contributing to these differences.
NEW QUESTION # 152
According to the Global Sustainable Investment Alliance (GSIA), as of 2020, the largest sustainable investment strategy globally is:
- A. exclusionary screening
- B. corporate engagement and shareholder action
- C. ESG integration
Answer: C
Explanation:
According to the Global Sustainable Investment Alliance (GSIA), as of 2020, the largest sustainable investment strategy globally is ESG integration.
Definition of ESG Integration: ESG integration involves the systematic and explicit inclusion of environmental, social, and governance (ESG) factors into financial analysis by investment managers.
GSIA Reports: The GSIA's Global Sustainable Investment Review highlights that ESG integration has become the dominant strategy among sustainable investment practices. This approach is favored due to its comprehensive consideration of ESG factors in traditional financial analysis.
Growth Trends: The increasing awareness of ESG risks and opportunities has driven the growth of ESG integration, making it the largest strategy in terms of assets under management (AUM).
CFA ESG Investing Reference:
The CFA Institute's resources on ESG integration emphasize the importance and prevalence of this strategy among investors. It outlines how ESG integration helps in identifying material risks and opportunities that could impact financial performance, thus supporting better investment decisions.
NEW QUESTION # 153
The triple bottom line accounting theory considers people, profit, and:
- A. planet
- B. efficiency.
- C. licence to operate
Answer: A
Explanation:
The triple bottom line accounting theory considers people, profit, and planet. This framework expands the traditional financial bottom line to include social and environmental dimensions, emphasizing sustainable and responsible business practices.
* People: This dimension focuses on the social aspects of business, including employee welfare, community engagement, and human rights. It assesses the impact of business activities on stakeholders and society at large.
* Profit: The profit dimension includes the traditional financial performance of the business. It measures the economic value generated by the company and its contribution to shareholders and the economy.
* Planet: The planet dimension addresses the environmental impact of business operations. It considers factors such as resource use, waste management, carbon emissions, and overall environmental sustainability.
References:
* MSCI ESG Ratings Methodology (2022) - Explains the principles of the triple bottom line and its importance in comprehensive ESG assessment.
* ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the integration of social, economic, and environmental factors in sustainable business practices.
NEW QUESTION # 154
Which of the following ESG screening methodologies is most likely to result in a well-diversified portfolio? Screening on:
- A. a relative basis only
- B. an absolute basis only
- C. both a relative basis and an absolute basis
Answer: C
Explanation:
Screening on both a relative basis and an absolute basis is most likely to result in a well-diversified portfolio.
Relative Screening: This involves comparing companies within the same industry or sector to identify the top or bottom performers based on ESG criteria. It ensures that the portfolio maintains exposure to various industries.
Absolute Screening: This sets fixed thresholds for ESG criteria that companies must meet to be included in the portfolio, regardless of their industry. It ensures that the portfolio includes only companies that meet a certain standard of ESG performance.
Diversification: Combining both methods allows for a broader and more balanced approach to ESG integration, ensuring that the portfolio is diversified across sectors while maintaining high ESG standards.
CFA ESG Investing Reference:
The CFA Institute's ESG Investing materials emphasize the benefits of using both relative and absolute screening to achieve a well-diversified portfolio that aligns with ESG objectives. This combined approach helps in capturing a wide range of high-performing ESG companies across different industries.
NEW QUESTION # 155
Which of the following governance initiatives was focused on increased oversight of banks?
- A. The Sarbanes-Oxley Act
- B. The Greenbury Report
- C. The Dodd-Frank Act
Answer: C
Explanation:
Among the listed governance initiatives, the Dodd-Frank Act is specifically focused on increasing oversight of banks.
1. The Dodd-Frank Act: Enacted in response to the 2008 financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act introduced comprehensive reforms to increase oversight and regulation of the financial industry, particularly banks. It aimed to reduce risks, enhance transparency, and protect consumers by implementing stricter regulatory standards and oversight mechanisms for financial institutions.
2. Other Governance Initiatives:
The Greenbury Report (Option B): This report, published in the UK in 1995, focused on executive remuneration and corporate governance but did not specifically address bank oversight.
The Sarbanes-Oxley Act (Option C): Enacted in 2002 in the US, this act aimed to enhance corporate governance and financial reporting transparency across all sectors, not specifically focusing on banks.
Reference from CFA ESG Investing:
Bank Oversight Regulations: The CFA Institute discusses the impact of the Dodd-Frank Act on the financial industry, emphasizing its role in strengthening oversight and regulatory standards for banks and other financial institutions.
NEW QUESTION # 156
Jurisdictions are most likely to impose extraterritorial laws in relation to:
- A. bribery and corruption
- B. upholding high standards in health and safety
- C. paying suppliers appropriately and promptly.
Answer: A
Explanation:
Jurisdictions are most likely to impose extraterritorial laws in relation to bribery and corruption. Extraterritorial laws are those that have legal force beyond the borders of the issuing country, and they are often applied to combat global issues such as corruption.
Global Standards: Countries impose extraterritorial laws to ensure that their nationals and corporations comply with anti-bribery and anti-corruption standards, regardless of where they operate. This helps maintain ethical business practices internationally.
Regulatory Frameworks: Prominent examples of extraterritorial laws include the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, which apply to activities conducted abroad by U.S. and UK entities, respectively. These laws aim to prevent and penalize bribery and corruption on a global scale.
Enforcement and Compliance: By implementing extraterritorial anti-corruption laws, jurisdictions can enforce compliance and hold companies accountable for corrupt practices in foreign countries, promoting transparency and integrity in international business.
Reference:
MSCI ESG Ratings Methodology (2022) - Discusses the role of extraterritorial laws in combating bribery and corruption and their impact on global business practices.
ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the significance of extraterritorial regulations in maintaining ethical standards and preventing corruption in international operations.
NEW QUESTION # 157
Which of the following best describes a mature ESG regulatory framework? A government putting forward:
- A. voluntary ESG corporate disclosures.
- B. a "comply or explain" ESG regulation.
- C. ESG implementation and reporting guidelines.
Answer: B
Explanation:
A mature ESG regulatory framework often includes a "comply or explain" regulation, which requires companies to either comply with ESG standards or explain why they are not following them, promoting greater transparency and accountability. (ESGTextBook[PallasCatFin], Chapter 9, Page 522)
NEW QUESTION # 158
Carbon intensity is calculated as Scope 1 plus Scope 2 emissions divided by:
- A. market capitalization
- B. revenue
- C. profit
Answer: B
Explanation:
Carbon intensity is calculated as Scope 1 plus Scope 2 emissions divided by revenue.
* Revenue (B): Carbon intensity is a measure of a company's carbon emissions relative to its economic output, typically calculated as the sum of Scope 1 and Scope 2 emissions divided by revenue. This provides a standardized way to compare the carbon efficiency of companies across different sizes and industries.
* Profit (A): Using profit for this calculation is less common and would not provide a consistent measure of carbon intensity, as profits can vary widely due to factors unrelated to emissions.
* Market capitalization (C): Market capitalization reflects the company's market value, which is influenced by investor perceptions and market conditions, rather than the direct economic output of the company.
References:
* CFA ESG Investing Principles
* Standard methodologies for calculating carbon intensity
NEW QUESTION # 159
By 2030, the European Strategy for Plastics in a Circular Economy will require:
- A. All plastic packaging to be reusable or recyclable
- B. A voluntary agreement to ban plastic packaging
- C. Member countries to impose taxes on plastic packaging
Answer: A
Explanation:
By 2030, the European Strategy for Plastics in a Circular Economy aims to ensure that all plastic packaging is reusable or recyclable. This initiative is part of the EU's broader efforts to reduce plastic waste and promote sustainable materials management.
ESG Reference: Chapter 3, Page 176 - Environmental Factors in the ESG textbook.
NEW QUESTION # 160
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