Which of the following by itself is the LEAST naturally-suited investment strategy to accommodate the United Nations' Sustainable Development Goals (SDGs)?

Study for the CFA Sustainable Investing Certificate. Use flashcards and multiple-choice questions; each question provides hints and explanations. Prepare effectively for your exam!

When evaluating investment strategies in relation to the United Nations' Sustainable Development Goals (SDGs), it's important to consider how each strategy aligns with the goals of promoting sustainable development and addressing global challenges.

Negative screening involves excluding certain companies or sectors from an investment portfolio based on specific criteria, such as their involvement in activities deemed harmful to society or the environment, such as fossil fuels or tobacco. While this strategy can help investors avoid supporting businesses that conflict with sustainability values, it does not actively promote or contribute to any positive outcomes related to the SDGs. Instead, it focuses solely on what to avoid rather than what to invest in to drive positive change.

On the other hand, thematic investment funds, impact funds, and positive screening are all strategies that can directly align with or support the goals of the SDGs. Thematic investment funds seek to invest in areas that can contribute to specific themes linked to sustainable development, such as renewable energy or sustainable agriculture. Impact funds aim to create measurable positive social or environmental impacts alongside financial returns. Positive screening involves actively selecting companies that meet certain sustainability criteria and contribute positively to sustainable development.

Given this context, negative screening is least aligned with the proactive and positive approach necessary to support the SDGs, as its primary function is exclusion rather

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