Sure Pass Exam Sustainable-Investing PDF

For an economic activity to be considered environmentally sustainable under the ASEAN Taxonomy, it must contribute substantially to at least one of the six environmental objectives.

ASEAN Taxonomy: The ASEAN Taxonomy for Sustainable Finance provides a classification system to determine which activities can be considered environmentally sustainable.

Environmental Objectives: These six environmental objectives typically include areas such as climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.

Contribution Requirement: An activity must make a significant contribution to at least one of these objectives to be classified as sustainable. This ensures that the activity aligns with broader environmental goals and promotes sustainability across the region.

CFA ESG Investing References:

The CFA Institute’s materials on sustainable finance frameworks highlight the importance of substantial contributions to specific environmental objectives to classify an activity as sustainable. This approach ensures clarity and consistency in sustainable finance across different regions​​​​.

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The COVID-19 pandemic led to increased inequality.

Economic Impact: The pandemic exacerbated existing economic inequalities, as lower-income individuals and vulnerable populations were disproportionately affected by job losses, health impacts, and limited access to resources.

Social Disparities: Inequality increased as remote work options were more accessible to higher-income individuals, while essential workers, often from lower-income backgrounds, faced greater health risks.

Global Trends: Reports and studies during and after the pandemic indicated a widening gap between the rich and the poor, highlighting the significant social and economic challenges posed by the crisis.

CFA ESG Investing References:

The CFA Institute’s discussions on the social impacts of the COVID-19 pandemic emphasize the increased inequality as a major consequence, affecting long-term social and economic stability​​​​.

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Philanthropy is most likely associated with corporate social responsibility (CSR).

Impact investing (A): Impact investing focuses on generating social or environmental impact alongside financial returns. While philanthropy can be a form of impact investing, it is more commonly linked to CSR.

Shareholder engagement (B): This involves shareholders actively engaging with companies to influence their ESG practices. Philanthropy is not a direct form of shareholder engagement.

Corporate social responsibility (C): CSR encompasses a company's efforts to contribute positively to society, including philanthropic activities such as donations and community involvement.

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.