2.7 According to CFA Institute, ESG integration: (V4 Mock #96)
A. uses rights and position of ownership to influence issuers'activities.
B. excludes issuers from the investment product based on certain ESG-related activities.
C. explicitly considers ESG-related factors that are material to the investment risk and
return.
Correct Answer: C
C is correct because according to the CFA Institute Proposed ESG Product Features, "ESG
integration" is described as a feature function that "explicitly considers ESG-related factors that
are material to the risk and return of the investment, alongside traditional financial factors, when
making investment decisions."
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