Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the CESGA EFFAS Exam with comprehensive quizzes and study materials. Master Environmental, Social, and Governance analysis with practice questions and detailed explanations to ensure you're ready for success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which is one of the main difficulties regarding data availability?

Difficulties of building data from companies.
Difficulties of building data from NGOs.
Difficulties of building data from analysts.
Difficulties of building data from governments.

The correct answer is: Difficulties of building data from companies.

One of the main difficulties regarding data availability is indeed linked to the challenges of gathering data from companies. Companies often operate within competitive environments, which may lead them to limit the transparency of their operations. They may withhold comprehensive data on environmental impacts, social practices, and governance structures due to concerns over proprietary information or competitive advantage. Additionally, varying levels of reporting standards, different metrics used by companies, and the inconsistent application of ESG frameworks can make it hard to obtain a cohesive set of data across industries. This lack of standardized reporting and the reluctance of some companies to disclose information contribute to the overall challenge of data availability in analyzing Environmental, Social, and Governance factors. In contrast, while other entities like NGOs, analysts, and governments also may present their own unique challenges regarding data collection and availability, the issues are generally more pronounced with corporate data. NGOs, for instance, might publish reports aimed at accountability, and government data is often accessible through regulations, albeit with potential delays or inefficiencies in reporting. Therefore, the difficulties stemming from company data are particularly significant in the realm of ESG analysis.