PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for CFA Sustainable Investing

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
132+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More CFA Institute Exams and Certificates

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CFA Level 1

Practice Questions204 questionsStudy Guide79 topicsCheat Sheet96 factsFlashcards50 cardsVideos1 videoBlogs2 blogsFree CE

CFA Level 2

Practice Questions233 questionsStudy Guide60 topicsVideos1 videoBlogs1 blogFree CE

CFA Level 3

Practice Questions200 questionsVideos1 videoBlogs1 blogFree CE

CFA Institute Certificate in ESG Investing

Practice Questions100 questionsFree CE

CFA Institute Climate Risk, Valuation & Investing Certificate

Practice Questions100 questionsFree CE

CFA Institute Investment Foundations Certificate

Practice Questions100 questionsFree CE

More From This Family

Videos and articles for deeper review.

VideoBest Calculators for the CFA Exam 2026: TI BA II Plus vs HP 12C — The Only Two ChoicesArticleCFA Level I 300-Hour Execution Plan (2026): Hour-by-Hour Allocation for the New 2027 Topic Weights14 min readArticleBest Calculators for the CFA Exam 2026: TI BA II Plus vs HP 12C — The Only Two Choices13 min read
Exam Review

Key Facts: CFA Sustainable Investing Exam

100

Multiple-Choice Questions

CFA Institute

2h 20m

Exam Time

CFA Institute

$890

Exam Fee

CFA Institute

Not published

Passing Score (MPS)

CFA Institute

100+ hrs

Recommended Study Time

CFA Institute

8

Curriculum Topic Areas

CFA Institute

The CFA Institute Sustainable Investing Certificate (formerly the Certificate in ESG Investing) is a 100-question, 2-hour-20-minute exam with a USD 890 registration fee. Its curriculum covers eight official topic areas, from ESG fundamentals and E, S and G factors to stewardship, ESG analysis and valuation, portfolio construction, and mandates and reporting. There are no formal prerequisites, and CFA Institute recommends at least 100 hours of study.

Sample CFA Sustainable Investing Practice Questions

Try these sample questions to review concepts for the CFA Sustainable Investing exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 132+ question experience with AI tutoring.

1An investment manager states that her firm 'systematically incorporates ESG factors into traditional financial analysis to improve risk-adjusted returns.' Which sustainable investing approach is she describing?
A.Negative screening
B.ESG integration
C.Impact investing
D.Thematic investing
Explanation: ESG integration is the systematic and explicit inclusion of material ESG factors alongside traditional financial analysis in investment decisions. The CFA Institute defines it as a way to enhance risk-adjusted returns by considering financially material sustainability information without necessarily targeting non-financial outcomes.
2Which of the following best describes the relationship between ESG investing and fiduciary duty under the most widely cited interpretations (e.g., the PRI's 'Fiduciary Duty in the 21st Century' report)?
A.Considering ESG factors typically conflicts with fiduciary duty because it sacrifices returns for values.
B.Failing to consider financially material ESG factors is a failure of fiduciary duty.
C.Fiduciary duty applies only to financial returns and is unrelated to ESG considerations.
D.ESG considerations are permitted only for charitable or non-profit investors.
Explanation: The PRI/UNEP FI 'Fiduciary Duty in the 21st Century' (2019) concluded that failing to incorporate financially material ESG factors is a failure of fiduciary duty. Modern interpretations treat material ESG analysis as part of prudent investment process, not in conflict with it.
3How many Principles for Responsible Investment (PRI) are signatories committed to implementing?
A.Three
B.Six
C.Ten
D.Seventeen
Explanation: The PRI consists of six Principles, including incorporating ESG into investment analysis, being active owners, seeking disclosure from investee companies, promoting acceptance of the Principles, working collaboratively, and reporting on progress.
4An asset owner wants to align reporting with global sustainability development goals adopted by the United Nations in 2015. Which framework would they reference?
A.UN Global Compact (UNGC)
B.Sustainable Development Goals (SDGs)
C.Principles for Responsible Banking (PRB)
D.Task Force on Climate-related Financial Disclosures (TCFD)
Explanation: The 17 UN Sustainable Development Goals (SDGs), adopted in 2015 with a 2030 target horizon, provide a globally agreed framework for development priorities. Many investors use SDG mapping to demonstrate the alignment of capital with broader societal outcomes.
5Which UN initiative includes 10 principles spanning human rights, labor, environment, and anti-corruption that companies voluntarily adopt?
A.UN Sustainable Development Goals
B.UN Global Compact
C.UN Principles for Responsible Investment
D.UN Environment Programme Finance Initiative
Explanation: The UN Global Compact (UNGC) is a voluntary initiative for companies, comprising 10 principles across human rights, labor, environment, and anti-corruption. It is the world's largest corporate sustainability initiative.
6A portfolio manager removes all manufacturers of cluster munitions from her investable universe in compliance with international conventions. Which approach is this?
A.Best-in-class screening. It does not match the curriculum definition for this scenario.
B.Norms-based screening. It does not match the curriculum definition for this scenario.
C.Negative/exclusionary screening
D.Thematic investing. It does not match the curriculum definition for this scenario.
Explanation: Excluding specific products or sectors (such as cluster munitions, anti-personnel mines, or tobacco) on ethical or legal grounds is negative or exclusionary screening. When the exclusion is rooted in international conventions like the Oslo Convention, it is sometimes also termed norms-based, but the mechanic of excluding companies based on their products is most precisely classified here as negative screening.
7Which statement most accurately distinguishes 'impact investing' from 'ESG integration'?
A.Impact investing requires only an ESG screen, while ESG integration requires positive impact measurement. It is a distractor that does not fit the stem.
B.Impact investing requires the explicit intention to generate measurable positive impact alongside financial return; ESG integration does not require an impact intention.
C.Impact investing is restricted to private markets; ESG integration is restricted to public markets. It is a distractor that does not fit the stem.
D.Impact investing always sacrifices financial return; ESG integration always enhances return. It is a distractor that does not fit the stem.
Explanation: Per the GIIN definition, impact investing requires intentionality, contribution, and measurement of positive social/environmental outcomes alongside financial returns. ESG integration incorporates material ESG factors into financial analysis but does not require an explicit impact objective or measurement.
8The phrase 'double materiality' as used in EU sustainability reporting (CSRD/ESRS) refers to which two dimensions?
A.Financial materiality and impact materiality
B.Short-term materiality and long-term materiality
C.Quantitative materiality and qualitative materiality
D.Sector materiality and entity materiality
Explanation: Double materiality combines (1) financial materiality — how sustainability matters affect the company's enterprise value — and (2) impact materiality — how the company affects people and the environment. The CSRD/ESRS regime in the EU explicitly requires both perspectives.
9Within the EU Sustainable Finance Disclosure Regulation (SFDR), an Article 9 fund is one that:
A.Does not consider sustainability risks at all.
B.Promotes environmental or social characteristics among other characteristics.
C.Has sustainable investment as its objective.
D.Is exempt from sustainability disclosures because of its size.
Explanation: Under SFDR, Article 9 funds have sustainable investment (as defined in Article 2(17)) as their stated objective. Article 8 funds 'promote' E/S characteristics, while Article 6 funds disclose how they integrate sustainability risks but make no E/S claims.
10A market participant criticizes ESG ratings for showing low cross-provider correlation. Which of the following is the most commonly cited driver of this divergence according to academic studies (e.g., Berg, Koelbel, and Rigobon, 2022)?
A.Rating providers using identical methodologies but different time periods
B.Differences in scope, measurement, and weights across rating providers
C.Mandatory disclosure rules that force standardization across providers
D.Identical underlying data but different statistical software
Explanation: Berg, Koelbel, and Rigobon (2022) attribute ESG ratings divergence primarily to differences in scope (which categories are included), measurement (which indicators are used for each category), and weights (how categories are aggregated). Scope and measurement together explain most of the divergence.

About the CFA Sustainable Investing Exam

Free CFA Institute Certificate in Sustainable Investing practice questions covering ESG integration, climate, stewardship, ISSB, SFDR, GIPS, and IRIS+.

Exam sponsor: CFA Institute. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

2 hours 20 minutes

Passing Score

Not published (Pass/Did Not Pass; minimum passing score set by CFA Institute)

Exam / Certification Fees

$890

Exam sponsor website

Reported exam pass rate: Not officially published. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

8-15%

Overview of ESG Investing and the ESG Market

Approaches to responsible investment, materiality, megatrends, supranational initiatives, and the ESG market's size, drivers and stakeholders

8-15%

Environmental Factors

Climate change, natural resources, biodiversity, pollution, carbon pricing, scenario analysis and environmental analysis at company to country level

8-15%

Social Factors

Social megatrends, human capital, human rights, product responsibility, and social analysis at country, sector and company level

8-15%

Governance Factors

Governance frameworks and models, board effectiveness, remuneration, audit, shareholder rights and governance in valuation

5-10%

Engagement and Stewardship

Stewardship codes, engagement strategies and escalation, collaborative engagement, proxy voting, and engagement across asset classes

20-30%

ESG Analysis, Valuation and Integration

ESG data and ratings, scorecards, and ESG effects on industry and company performance and on valuation across asset classes

10-20%

ESG Integrated Portfolio Construction and Management

Asset allocation, screening, best-in-class, thematic and impact strategies, ESG indexes and optimization

5-10%

Investment Mandates, Portfolio Analytics and Client Reporting

Mandate construction, RFPs, client types, greenwashing, reporting and measuring ESG performance

Preparing for the CFA Sustainable Investing Exam

What You Need to Know

  • Passing score: Not published (Pass/Did Not Pass; minimum passing score set by CFA Institute)
  • Exam length: 100 questions
  • Time limit: 2 hours 20 minutes
  • Exam / certification fees: $890 Official sources

Using Our Practice Resources

  • Work through all 132 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CFA Sustainable Investing: Suggested Study Strategy

1Master the core international frameworks: PRI 6 Principles, UNGC 10 Principles, SDGs, TCFD, IFRS S1/S2 (ISSB), CSRD/ESRS, EU Taxonomy, EU SFDR Articles 6/8/9, ICMA Bond Principles, GIPS, and IRIS+
2Distinguish clearly between ESG integration, negative/exclusionary screening, best-in-class tilts, thematic investing, and impact investing
3Practice valuation adjustments (DCF cash flow projections, cost of equity, credit spreads, and discount rates) for financially material ESG factors
4Understand Scope 1, Scope 2, and Scope 3 emissions boundaries and the mathematical differences between WACI, carbon footprint, and absolute emissions
5Study European regulatory standards thoroughly: SFDR Articles 6, 8, and 9 classifications, EU Paris-Aligned Benchmarks (PAB) vs Climate Transition Benchmarks (CTB), and EU Taxonomy technical screening criteria
6Take full-length 100-question timed practice exams to build stamina for the 140-minute testing window

Frequently Asked Questions

What is the CFA Institute Certificate in Sustainable Investing?

The CFA Institute Sustainable Investing Certificate is a foundational credential covering ESG factors, stewardship, ESG analysis and valuation, portfolio construction, and client reporting. It was previously called the Certificate in ESG Investing, a qualification originally developed by the CFA Society of the UK. The exam has 100 multiple-choice questions and 2 hours 20 minutes of exam time.

How much does the CFA Sustainable Investing exam cost?

Registration costs USD 890 (local taxes may apply) and includes the digital curriculum. Rescheduling an appointment costs USD 30, and candidates who do not pass can re-register for a later attempt at a reduced USD 690 fee.

How long should I study for the CFA Sustainable Investing exam?

CFA Institute recommends studying for at least 100 hours. Candidates have six months from registration to sit the exam (and must schedule within five months), so many plan a study period of three to five months depending on their finance and ESG background.

What topics are covered in the CFA Sustainable Investing exam?

The curriculum has eight topic areas: overview of ESG investing and the ESG market (8-15%); environmental factors (8-15%); social factors (8-15%); governance factors (8-15%); engagement and stewardship (5-10%); ESG analysis, valuation and integration (20-30%); ESG integrated portfolio construction and management (10-20%); and investment mandates, portfolio analytics and client reporting (5-10%).

Is the CFA Sustainable Investing certificate recognized internationally?

Yes. Administered by CFA Institute, the certificate has broad international recognition across asset management firms, pension funds, sovereign wealth funds, and consultancy practices. Candidates can take the exam at Prometric test centers globally or via online proctored testing.

Do I need a CFA charter to take this exam?

No. The Certificate in Sustainable Investing is open to anyone — no academic prerequisites, work experience, or prior CFA exam passes are required. It serves both as a specialized entry credential and as a valuable addition for established investment professionals.

How is the exam scored?

Results are reported as Pass or Did Not Pass. CFA Institute sets a minimum passing score using the modified Angoff standard-setting method and keeps it comparable across exam versions through equating, but it does not publish the score. There is no minimum score per topic area.