The CFA ESG Investing certification is in its fourth (2023) edition. It is time to take stock. (Updated March 2024)
This article is presented by Alma Mundus, based on a compilation of the most asked questions and information from candidates' surveys, interviews, and webinars gathered through the last three editions of the CFA ESG certificate (the certificate).
Alma Mundus is an organization focused on Sustainable Strategies and ESG and a major CFA Institute Prep Provider, offering a complete set of study solutions used by candidates to prepare for the CFA ESG Certificate exam.
1.What is the goal of the CFA ESG Investing certificate?
The goal is to educate and guide professionals on analyzing and integrating material ESG factors in their day-to-day roles.
2. What are the entry criteria?
There are no entry criteria, which means anyone looking to improve their understanding of ESG issues can apply. The only recommendation from the CFA Institute is a foundational knowledge of the investment process.
3.Do I need to have other CFA certificates, degrees, or experience to do the CFA ESG Certificate?
No. As referred to in the previous question, there are no entry criteria. Candidates don't need to have passed other CFA Institute certificates, have a specific degree, or have a certain amount of years of experience.
4. To whom is it directed?
The certification was designed for investment practitioners; however, it is suitable for anyone working in front or back offices and other positions, including wealth management, risk management, sales and distribution, product development, financial advice, and consulting.
Since its launch, the CFA ESG certificate has already registered more than 41,000 candidates globally.
5. How many people have done the CFA ESG exam so far?
In December 2023, there were around 51,000 registrations. This number refers to the total number of registrations since Edition 1 in 2019. The graph below presents the increase in the number of candidates registered since Edition 1.
Hong Kong is now the market leader. The top 5 markets also include the UK, USA, Singapore, and Canada.
6.What is the cost, and what is included?
The registration cost of the certificate is USD 865. The certificate registration includes the following:
Candidates can also order the hard copy of the book for USD 135 + shipping. (Tip: Search for "CFA ESG Book" on Amazon and check for a better deal. Just make sure you are buying the correct version. For example, we are now in Edition 4 (or 2023 Edition), so the book should have that reference on its front page.)
Retaking the exam currently costs USD 690.
Rescheduling your exam is also possible. Candidates must do it 72 hours before their exam date/time and pay a rescheduling fee of $30.
7.What is the timeline for doing my exam after registering?
Upon registration/payment, candidates have 6 months to do the exam. This policy has been effective since December 1, 2022. Candidates registered before that date have 12 months to do their exam. The CFA Institute recommends at least a month of study before booking the exam.
When planning their studies and booking exams, candidates should also consider the current version cycle/cut-off period (see below).
8.Are there specific / fixed dates defined by the CFA Institute to do the exam?
No. The CFA Institute does not define the exam date; candidates do. This is, in fact, an advantage of the CFA ESG Certificate. After registering, candidates have 6 months to plan, study, and decide when to do their exams.
The only limitation may be the number of exam spots available on specific dates. We advise our candidates to book their exams two to three weeks in advance to avoid any potential exam "overbooking."
9. What is the version cycle/cut-off period?
A new version is an updated form of the previous one. It includes additional content and outstanding corrections or amendments to previous versions.
The CFA ESG Certificate Version 4 (2023 Edition) was launched in December 2022 and remained active throughout the full calendar year of 2023. This represents a change from previous editions, which had their cut-off in October. Going forward, each version will align with the calendar year. As a result, Version 5 (2024 Edition) and all future versions will be active from January to December of the respective year.
The CFA ESG certification was launched in 2019 and managed by the CFA UK during the two first editions: Edition 1 (Oct 19 to Sep 20) and Edition 2 (Oct 20 to Sep 21).
CFA ESG Candidates will be examined on the specific version/edition for which they have registered, regardless of the chosen exam date. To know more about the New CFA ESG 2024 Version, check this article.
Candidates who register for the CFA ESG Certificate until December 31, 2023, will take the exam on Version 4, or 2023 Edition (official CFA Institute Information).
Candidates who register during the 2024 calendar year (from January 1, 2024, until December 31, 2024) will be tested on Version 5 or 2024 Edition (official CFA Institute Information).
According to the CFA Institute, "This change does not impact how we deliver the curriculum to candidates but rather improves the candidate experience by ensuring they sit for the exam related to the curriculum they have been studying."
A final Alma Mundus tip on this matter: Historically, the registration fees have increased on every registration cut-off date. This means that the CFA ESG Certificate fees may increase on January 1, 2024, when the new Version 5 (2024 Edition) starts.
To know more about the New CFA ESG 2024 Version, check this article.
10.What content does the CFA ESG certification cover?
The exam is based on the content of the CFA ESG book, covering the topics below.
The book comprises nine chapters divided into three main sections, as highlighted above.
We detailed each chapter per number of pages, relevance, and difficulty level to help candidates focus on what matters the most. Chapters three, seven, and eight are the densest, the most important, and the most challenging; however, chapter seven needs to be highlighted as the most relevant for the exam.
11.What are the CFA ESG Pass Rate and Pass Mark? (last updated on December 2022)
In Edition 1, the CFA UK disclosed a pass rate between60-75%and a potential pass mark between 60-70% for the CFA ESG Certificate. The pass rate information has been revised since then; however, the pass mark was never updated.
The most updated pass rate is 71.8% (period from Sep to Nov 2022). Before September 2022, the pass rate disclosed was 81%.
In May 2022, Alma Mundus requested the updated pass mark for the CFA ESG Certificate; however, theCFA Institute stated, "Wedo not disclose the pass mark for the CFA ESG Certificate."
Alma Mundus believes thatthe pass mark is around 70% (probably between 71% - 74%). This is not official CFA Institute Information. To know more about these and other tips, feel free to sign up for one of our FREE Webinars.
12.What is the recommended study time?
The CFA Institute recommends around 130 hours for non-investment professionals and 100 hours for investment professionals.
We advise candidates to have this as a reference only. We understand that someone without an investment background may take more than 130 hours. We noticed that it also depends on each candidate's (quality) time and conditions to prepare for the exam.
13.How difficult is the CFA ESG Exam?
Comparing the CFA ESG with other certifications, we can say that it is as tricky as the Investment Management Certificate (IMC) and more accessible than the CFA 1.
Compared with the CFA 1, the CFA ESG certification requires less reading, and no calculations are needed to answer the 100 questions in the exam. However, it is essential to acknowledge that the CFA ESG certification still follows the CFA's high standards; therefore, it requires a study plan, commitment, and practice.
Approximately one-third of candidates reported that the exam was more difficult than anticipated, while 41% found it to be of the expected difficulty and 26% found it to be easier than expected.
In March 2023, Alma Mundus surveyed 230 CFA ESG Candidates and Alumni to know their opinion about the CFA ESG exam level of difficulty. These were the results.
The exam comprises 100 questions. It is built based on standard multiple choice questions, and its time of completion is 2h 20 minutes.
14.What is the format of the exam?
The exam comprises 100 questions. The time of completion is 2h 20 minutes.
The exam is built based on standard multiple-choice questions. All the questions are based on the content of the CFA ESG book. No calculations are required to answer the exam questions; therefore, no calculators are allowed.
For native and proficient English speakers, time does not seem to be an issue in the exam; however, this may be an issue for non-native and non-proficient speakers. During their preparation, Candidates should test not only their ESG knowledge but also their time management and endurance in an exam scenario. This can be achieved by practicing sets of 100 questions or Mock Exams that mimic the exam challenges.
15.What study materials are available, and how do I prepare for the exam?
Upon registration, the candidates have access to the study materials provided by the CFA Institute, which include:
Many candidates look for additional study solutions. Alma Mundus offers a complete set of study solutions that candidates can use from day one to exam day.
16.Is it available worldwide? Is it available in my country?
The CFA Institute is introducing CFA ESG Certification on a market-by-market basis. Candidates will need to check if their country is included.
Candidates have two options to do their exam:
If you cannot find your country in any of these options, you may have to wait until your country is included.You can also reach out to the CFA Institute at info@cfainstitute.org
17.When and how can I book my CFA ESG Exam?
Candidates can book their exams right after they receive their registration confirmation. As mentioned before, candidates have two options to do their exam:
It is widely recognized that CFA ESG certified professionals have a better understanding of how to analyze and integrate material ESG factors in their day-by-day roles.
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And the market is requesting ESG skills.
18.Is it worth it?
Our short answer is yes, it is. One effective way to demonstrate the value of the CFA ESG Certificate is to provide examples of global organizations that have adopted it to educate their employees.
It is widely recognized that CFA ESG-certified professionals have a better understanding of how to analyze and integrate material ESG factors in their day-by-day roles.
ESG was first mentioned in the 2006 United Nations Principles for Responsible Investment (PRI) report. The PRI is the world's leading proponent of responsible investment. The graph below refers to the PRI number of signatories and assets under management. From 63 signatories and US$6.5 trillion in AUM in 2016 to 3,826 signatories and US$121.3 trillion in AUM in 2021.
The CFA Institute and LinkedIn reviewed one million profiles as part of research to understand if there was a need for ESG expertise in the market. The table below shows the results of that research.
Looking, for example, at Portfolio Managers, 146,000 profiles were reviewed, of which only 1.5% of those had ESG or sustainability skills. The 1.5% referred already considered a 32% increase compared to the previous year. The percentage of postings seeking Portfolio Managers with ESG or sustainability skills was 18%.
Enrolling in an ESG certification at this stage allows candidates to study subjects in a developing field with high market demand and opportunities. Doing the certificate may place professionals in a better position to take those opportunities.
If you find this article helpful, give it a 👍 and Follow Alma Mundus on LinkedIn for all updates, news, alerts, and promotions regarding the CFA ESG Certificate.
Alma Mundus provides candidates with the most up-to-date official information related to the CFA ESG Certificate. Please contact Alma Mundus or the CFA Institute if you have further questions. The information in this article is based on the most recent information disclosed by the CFA Institute.
Keep Focused. Keep Learning. You will Pass this Exam!
