alleryStart learning →An ESG risk rating mainly measures what about a company?
AIts charity donations
BIts annual profit growth
CIts exposure to ESG risks
DIts yearly audit fees
Answer & Solution
Correct answer: C. Its exposure to ESG risks
Risk rating agencies such as MSCI and Sustainalytics measure how exposed a company is to ESG risks rather than its concrete actions.
Keep practising SDG and ESG Assurance
Browse all SDG and ESG Assurance questions for CA Final, or explore more Auditing topics.
Related questions
The 1977 Sullivan Principles were a code of conduct for firms doing business in which counGreenhouse gas emissions, biodiversity loss and water management data belong to which ESG Employee safety and health, working conditions and diversity data belong to which ESG dimeWhich ESG dimension covers preventing bribery and corruption and executive compensation?Which 2005 report for UNEP FI concluded that integrating ESG issues into investment analysWhich economist argued social responsibility adversely affects a firm's financial performaWhich theory underlies European sustainability reporting?Which of these is another name used for ESG reporting?