Which of these topics are not generally expected to be addressed by the portfolio management-related section of an ESG policy?

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

The correct choice identifies corporate social responsibility activities such as community volunteering as a topic that is not typically addressed in the portfolio management-related section of an ESG policy. While corporate social responsibility (CSR) plays an important role in a company's overall commitment to sustainability and ethical practices, it often falls outside the primary concerns of portfolio management.

Portfolio management-related sections of an ESG policy generally focus on areas that directly impact investment decisions, such as stewardship and active engagement, which involve how investors interact with companies to influence sustainable practices and improve governance. Additionally, understanding ESG risks within the risk management function is crucial for identifying, assessing, and mitigating risks that could affect investment performance and asset value.

In contrast, community volunteering, while beneficial for societal impact and public relations, does not have a direct correlation with the financial performance or investment strategies that portfolio managers prioritize. Thus, it is less likely to be a central focus within the portfolio management aspect of an ESG policy.

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