Chapter 4 - Social Factors Flashcards
Which social megatrends are important to consider within the investment analysis?
(a) Human rights, health and safety and employee relations.
(b) The Millennium and Sustainable Development Goals.
(c) Automation, globalisation and longevity.
(d) Natural capital, biodiversity and climate change adaptation.
(c) Automation, globalisation and longevity.
What is an example of an internal and an external social factor?
(a) Internal: biodiversity; external: product liability.
(b) Internal: health and safety; external: social opportunities.
(c) Internal: animal welfare; external: employee relations.
(d) Internal: ESG analysis; external: engagement service providers.
(b) Internal: health and safety; external: social opportunities.
Why is a (social) materiality assessment important?
(a) It is standard procedure in investment analysis, which makes it an important tick-box exercise.
(b) It is always recommendable to conduct assessments, because these provide you with
invaluable insights.
(c) Not all countries, sectors and companies are affected equally by the different social megatrends and social factors.
(d) A social materiality assessment is required by law in many jurisdictions.
(c) Not all countries, sectors and companies are affected equally by the different social megatrends and social factors.
What is meant with the concept of a just transition?
(a) A transition that is aligned with the Paris Agreement.
(b) A transition that shares the financial and social burden in a fair way.
(c) A transition that is just in time to prevent stranded assets.
(d) A transition that respects labour and human rights.
(b) A transition that shares the financial and social burden in a fair way.
What is the FAIRR initiative?
(a) It is a collaboration that aims to reach a just transition.
(b) It is an initiative to stimulate fair trade.
(c) It is an investor network to engage on equal pay.
(d) It is an initiative that focuses on the increased prevalence of antimicrobial resistance.
(d) It is an initiative that focuses on the increased prevalence of antimicrobial resistance.
The OECD Guidelines for Multinational Enterprises:
(a) state that companies should adhere to the UN Guiding Principles for Business and Human Rights.
(b) is a voluntary agreement of multinational enterprises to improve their social performance.
(c) is a comprehensive set of government-backed recommendations on responsible business conduct.
(d) prescribe that multinational enterprises should perform a financial due diligence on their
suppliers to prevent bribery and corruption.
(c) is a comprehensive set of government-backed recommendations on responsible business conduct.
What does ‘offshoring’ mean?
(a) Protecting coastal areas by building offshore dykes to protect cities against climate change.
(b) Climate migrants moving from shore areas to more inland cities.
(c) Moving company production to low-income countries.
(d) Tax avoidance by companies.
(c) Moving company production to low-income countries.
What kinds of cases require Free Prior Informed Consent (FPIC)?
(a) Developments on ancestral land or the use of resources of a territory owned by indigenous
people.
(b) Consumer acceptance of limitation of product liability.
(c) Workplace relationships.
(d) Investments in alcohol, gambling or tobacco.
(a) Developments on ancestral land or the use of resources of a territory owned by indigenous
people.
What does the Access to Medicine Index analyse?
(a) How pharmaceutical companies are addressing access to medicine in low- to middle-income
countries.
(b) How affordable medicines are in the major developed markets.
(c) The percentage of employees covered under a health insurance scheme.
(d) How much time it takes to access medical assistance in developing countries.
(a) How pharmaceutical companies are addressing access to medicine in low- to middle-income
countries.
Of the following, what is the increase in automation and AI not associated with?
(a) Data privacy concerns in social media companies.
(b) Employment losses in the garment sector.
(c) Employment gains in the IT sector.
(d) Future employment losses in the transportation sector.
(b) Employment losses in the garment sector.
What does the corporate human rights benchmark look at?
(a) It looks at the policies of corporations on human rights.
(b) It looks at the practices of corporations on human rights.
(c) It looks at the policies and processes of corporations on human rights.
(d) It looks at the policies, processes and practices of corporations on human rights.
(d) It looks at the policies, processes and practices of corporations on human rights.
What is the Platform Living Wage Financials?
(a) A platform of companies offering a living wage to their employees.
(b) A platform of companies demanding their suppliers offer a living wage.
(c) A platform of investors offering a living wage to their employees.
(d) A platform of investors that encourage investee companies to address the non-payment of
living wage in their supply chains.
(d) A platform of investors that encourage investee companies to address the non-payment of
living wage in their supply chains.
Which of the following are included in labour rights?
(a) Freedom of association and protection of the right to organise, minimum wage and protection against physical forms of climate change.
(b) Right to organise and collective bargaining, living wage and minimum age.
(c) Abolition of forced labour, equal remuneration and protection against worst forms of child labour.
(d) Collective labour agreements, healthcare and retirement plans.
(c) Abolition of forced labour, equal remuneration and protection against worst forms of child labour.
What has been happening to Income inequality over the last few decades?
(a) It has been growing, which is good for the economy.
(b) It has reduced, which is good for the economy.
(c) It has been growing, which has a negative effect on the economy.
(d) It has reduced, which has a negative effect on the economy.
(c) It has been growing, which has a negative effect on the economy.
Which element of the EU taxonomy has a social aspect?
(a) Substantially contributing to one of the six objectives.
(b) Doing no significant harm to the other five objectives.
(c) Complying with minimum safeguards.
(d) None of the above.
(c) Complying with minimum safeguards.
