Legit Sustainable-Investing Exam Download

Under the UK listing regime, Class 1 transactions must be approved via a shareholder vote. These transactions significantly affect a company's assets, profits, or capital, exceeding a 25% threshold, and therefore require detailed justifications and approval from shareholders to ensure transparency and protect shareholder interests​​​​.

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Increased investment crowding into more ESG-friendly sectors is most likely to increase valuations. As more investors seek to allocate capital to sectors or companies with strong ESG performance, the demand for these investments rises, which can drive up their market prices and, consequently, their valuations. This trend reflects the growing recognition of the long-term value associated with sustainable business practices​​.

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The ESG risk taxonomy separates unmanaged ESG risk into two types:

Unmanageable risk– risks that cannot be mitigated by any company action (e.g. systemic climate change risk)

Management gap– risks thatcanbe mitigated but currently arenot

“Unmanageable risk cannot be addressed by company initiatives… The management gap represents risks that could be managed by a company through suitable initiatives but which may not yet be managed.”

Therefore, a material ESG risk that isinherent or systemicand cannot be addressed by management qualifies asunmanageable risk.

TheUK Modern Slavery Actmandates that companies publish aslavery and human trafficking statementif theirannual turnover exceeds £36 million. This threshold is based solely oncompany size, regardless of sector or geographic location.

“The Modern Slavery Act requires both medium- and large-sized companies to provide a slavery and human trafficking statement each year...”

There isno exemption or inclusion based on industry, location, or supplier relationships—onlysizedetermines the obligation.