Bloomberg ESG Certification - Introduction to ESG and Sustainable Finance Questions and Answers 100% Pass
5 views 0 purchase
Course
Bloomberg ESG Certification
Institution
Bloomberg ESG Certification
Bloomberg ESG Certification - Introduction to ESG and
Sustainable Finance Questions and Answers 100% Pass
Why do traditional valuation models, like discounted cash flow, fail at capturing the full
range of risks companies face today? Choose one.
A. They do not consider compliance risk.
B. They...
Bloomberg ESG Certification - Introduction to ES G and Sustainable Finance Questions and Answers 100% Pass Why do traditional valuation models, like discounted cash flow, fail at capturing the full range of risks companies face today? Choose one. A. They do not consider compliance risk. B. They offer limited, deterministic and p otentially misleading insights. C. They are outdated. D. They do not consider reputational risk. - Correct Answer ✔️✔️-B. They offer limited, deterministic and potentially misleading insights. Explanation : Traditional valuation models. like discounted cash flow, do not take into account environmental social and governance factors and therefore offer limited, deterministic and potentially misleading insights. This is because companies with poor ESG metric scores will likely have a higher risk profile on average Due to this, when using discounted cash flow analysis one could argue for using a higher discount rate (resulting in a lower valuation) in the discounted cash flow. A term closely related to sustainability reporting that refers to the measuring of environmental and social performance along with economic performance. This is broken down into what is called the "3 Ps": Profit, People and the Planet. A. Sustainability Reporting B. Corporate Social Responsibility C. Sustainability Externality D. Triple Bottom Line - Correct Answer ✔️✔️-D. Triple Bottom Line Explanation : Triple Bottom Line is a term closely related to sustainability reporting that refers to the measuring of environmental and social performance along with economic performance. T his is broken down into what is called the "3 Ps": Profit, People and the Planet. A management concept whereby companies integrate environmental and social concerns into their business. Companies aim to contribute to the well -being of the communities they affect and on which they depend. A. Sustainability Reporting B. Corporate Social Responsibility C. Sustainability D. Triple Bottom Line E. Externality - Correct Answer ✔️✔️-B. Corporate Social Responsibility Explanation : Corporate Social Responsibility is a management concept whereby companies integrate environmental and social concerns into their business. Refers to the positive or negative effects on third parties arising from manufacturing and consuming goods and services. Ideally, the negative effects of economic transitions on third parties should be reduced. A. Sustainability Reporting B. Corporate Social Responsibility C. Sustainability D. Externality E. Triple Bottom Line - Correct Answer ✔️✔️-D. Externality Explanation : Externality refers to the positive or negative effects on third parties arising from manufacturing and consuming goods and services. Ideally, the negative effects of economic transitions on third parties should be reduced. Refers to companies ' public disclosure of non-financial performance to communicate their impact, both positive and negative, on the environment and people. A. Sustainability Reporting B. Corporate Social Responsibility C. Sustainability D. Triple Bottom Line
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BrittieDonald. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
