ESG investing considers:

A Only financial returns

B Environmental, Social, and Governance factors alongside traditional financial analysis

C Only environmental issues

D Only governance

✓ Correct Answer: Option B

ESG integrates environmental (climate), social (labor, diversity), and governance (board, ethics) factors into investment decisions.

💡 Why is B) the correct answer?

The correct answer to the question "ESG investing considers:" is Option B: Environmental, Social, and Governance factors alongside traditional financial analysis.

The other options — A) Only financial returns, C) Only environmental issues, D) Only governance — are incorrect for this CFA Exam Prep question. As explained above: ESG integrates environmental (climate), social (labor, diversity), and governance (board, ethics) factors into investment decisions.

📚 About This CFA Exam Prep Practice Question

This 1-level CFA Exam Prep question from the Corporate Finance topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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ESG investing considers:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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