Which of the following statements is not correct about ESG? a.A mature ESG presence helps companies identify and tap into new markets, reach underserved customer bases, and innovate new products and services. b.A mature ESG presence leads to cost savings by reducing operating costs associated with material inputs (like water, energy from fossil fuels, soil). c.ESG information is used to understand enterprise risk management. d.ESG is about avoiding investment in companies that do not share one’s values

Cornerstones of Cost Management (Cornerstones Series)
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Chapter13: The Balanced Scorecard: Strategic-based Control
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1.Which of the following statements is not correct about ESG?

a.A mature ESG presence helps companies identify and tap into new markets, reach underserved customer bases, and innovate new products and services.
b.A mature ESG presence leads to cost savings by reducing operating costs associated with material inputs (like water, energy from fossil fuels, soil).
c.ESG information is used to understand enterprise risk management.
d.ESG is about avoiding investment in companies that do not share one’s values.
 

2.What is a stakeholder? (Select all that apply)

a.Someone who does construction staking for new building design plans
b.An employee of a company
c.A customer
d.Someone who owns a “stake” in a company
 

3.What does a materiality assessment do?

a.Assess what types of materials a company needs to create a product.
b.Assess what ESG issues are most important to the long-term success of the business and most important to stakeholders.
c.Assess a company’s marketing materials.
d.Assess a company’s procurement strategy.
 

4.Which of the following statements is not true in regard to why investors want information on a company’s diversity, equity, and inclusion (DEI) strategy?

a.Because the millennial workforce, the largest demographic group in the workforce, are also the most diverse generation yet.
b.Because enterprises that serve diverse markets require the diversity in background, experience, and knowledge c.to meet increasingly diverse customer needs.
d.Because group diversity can enhance the quality of decision making, risk management, and innovation.
Because it is politically correct.
 

5.Which of the following is an example of a “physical risk” in climate change risk management?

a.The proximity of a company’s assets and operations to areas prone to wildfires and hurricanes.
b.Consumer desires for more sustainably produced products.
c.A carbon emissions tax.
d.All of the above.
 

6.Which of the following statements is correct in regard to “transition risk” in climate change risk management?

a.Transition risk alludes to a wide range of issues, including risks from market, legal, credit, policy, reputational, and customer preference changes.
b.Transition risk solely refers to transitioning from fossil fuels to renewable energy sources.
c.Transition risks will only impact industries dependent on natural resources.
d.Transition risk is only relevant to energy companies.

ESG is another name for green bonds and/or impact investing.

7.True or False?

a.True
b.False
 

8.What publicly available information does an investor use to assess a company’s ESG maturity? (Select all that apply)

a.Online Customer Reviews
b.Social Media Posts from the Company
c.Investment Research Firms
d.Disclosure Initiatives like the Carbon Disclosure Project (CDP)
e.Indices like the Dow Jones Sustainability Index
f.Company ESG Disclosures
 

9.Which of the following statements are not correct about the concept of ESG Integration? (Select all that apply)

a.It is only relevant to certain sectors, industries, and geographies.
b.ESG Integration is just a new name for Corporate Social Responsibility (CSR).
c.Refers to how a company integrates environmental, social, and governance criteria into their daily business d.procedures, long-term planning, and organizational culture.
e.Both investors and corporations can benefit from ESG Integration.
 

10.Why is ESG so relevant to supply chain management?

a.Because 80-90% of a company’s environmental and social impacts occur along their supply chains.
b.Investors are holding company’s accountable for the actions of their supply chain partners.
c.Supply chain disruption is a key risk to standard business continuity and profitability.
d.Social media and the internet have enabled incidents on the other end of the world (in regard to labor e.management, human rights, etc) to significantly damage domestic corporate reputation and consumer support.
f.All of the above.
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