Exam ESG-Investing Topic 1 Question 38 Discussion

Actual exam question for CFA Institute's ESG-Investing exam
Question #: 38
Topic #: 1
Using surface water in a business activity is best characterized as a:

Suggested Answer: A Vote an answer

* Surface Water Usage:
* Using surface water in business activities directly affects the local ecosystem and biodiversity.
* It can alter water levels, temperature, and flow patterns, impacting aquatic life and surrounding habitats.
* Direct Impact Characteristics:
* Direct impacts are those that occur as a direct result of the company's operations.
* For example, drawing water from a river for industrial use can reduce water availability for fish and other aquatic organisms.
* CFA ESG Investing Reference:
* The Global Reporting Initiative (GRI) outlines that activities such as using surface water directly affect biodiversity, making it a direct impact.

by Calvin at Sep 30, 2024, 05:45 AM

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