- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 9. ESG Considerations for Investors
CFA Practice Question
The purchase of green bonds is an example of ______.
B. thematic investing
C. impact investing
A. best-in-class
B. thematic investing
C. impact investing
Correct Answer: C
Green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, and fishery and forestry protection. Their tax-exempt status provides a monetary incentive to tackle prominent social issues such as climate change and a movement to renewable sources of energy.
User Contributed Comments 2
| User | Comment |
|---|---|
| Rohule | i think this is thematic |
| Agarcia7 | I originally thought thematic as green bond provokes that notion, but 1) the project scope of these bonds is wide and not a singular stated theme and 2) the nature of these bonds is to create impact. |