Why is ESG so relevant to supply chain management?
Because 80-90% of a company's environmental and social impacts occur along their supply chains.
Investors are holding company's accountable for the actions of their supply chain partners.
Supply chain disruption is a key risk to standard business continuity and profitability.
Social media and the internet have enabled incidents on the other end of the world (in regard to labor
management, human rights, etc) to significantly damage domestic corporate reputation and consumer
support.
All of the above.
What is a stakeholder? (Select all that apply)
Someone who does construction staking for new building design plans
A customer
Someone who owns a "stake" in a company
An employee of a company
Which of the following statements is not true in regard to why investors want information on a
company's diversity, equity, and inclusion (DEI) strategy?
Because group diversity can enhance the quality of decision making, risk management, and innovation.
Because the millennial workforce, the largest demographic group in the workforce, are also the most
diverse generation yet.
Because enterprises that serve diverse markets require the diversity in background, experience, and
knowledge to meet increasingly diverse customer needs.
Because it is politically correct.
Which of the following statements is not correct about ESG?
A mature ESG presence helps companies identify and tap into new markets, reach underserved customer
bases, and innovate new products and services.
ESG is about avoiding investment in companies that do not share one's values.
A mature ESG presence leads to cost savings by reducing operating costs associated with material inputs
(like water, energy from fossil fuels, soil).
ESG information is used to understand enterprise risk management.
What publicly available information does an investor use to assess a company's ESG maturity? (Select all
that apply)
Indices like the Dow Jones Sustainability Index
Company ESG Disclosures
Disclosure Initiatives like the Carbon Disclosure Project (CDP)
Social Media Posts from the Company
Online Customer Reviews
Investment Research Firms
Which of the following is an example of a "physical risk" in climate change risk management?
The proximity of a company's assets and operations to areas prone to wildfires and hurricanes.
Consumer desires for more sustainably produced products.
A carbon emissions tax.
All of the above.
What does a materiality assessment do?
Assess what types of materials a company needs to create a product.
Assess what ESG issues are most important to the long-term success of the business and most important
to stakeholders.
Assess a company's procurement strategy.
Assess a company's marketing materials.
ESG is another name for green bonds and/or impact investing.
True or False?
True
False
Which of the following statements are not correct about the concept of ESG Integration? (Select all that
apply)
Refers to how a company integrates environmental, social, and governance criteria into their daily
business procedures, long-term planning, and organizational culture.
It is only relevant to certain sectors, industries, and geographies.
ESG Integration is just a new name for Corporate Social Responsibility (CSR).
Both investors and corporations can benefit from ESG Integration.
Which of the following statements is correct in regard to "transition risk" in climate change risk
management?
Transition risk solely refers to transitioning from fossil fuels to renewable energy sources.
Transition risk is only relevant to energy companies.
Transition risk alludes to a wide range of issues, including risks from market, legal, credit, policy,
reputational, and customer preference changes.
Transition risks will only impact industries dependent on natural resources.
