Launched in 2019, the CFA ESG Certificate has become the world’s largest ESG certificate, with over 41,000 candidates registered as of July 2023. This article aims to clarify and demystify the challenges of obtaining the CFA ESG Certification.
What will you find in this article?
1. The Exam Format
2. Looking at Pass Rates
3. Cracking the Pass Mark Code
4. How hard is CFA ESG exam: Understanding the Level of Difficulty
5. Echoes from the CFA ESG Alumni: How Hard is CFA ESG exam?
6. Strategic Timing – Exam Dates, Registration, and Deadlines
7. Version Cycles and Cut-off Periods
8. Mastering the CFA ESG Study Material
9. Road to Success: Preparing for the CFA ESG Certificate
The CFA ESG Exam Format
Candidates can book their exam anytime within the six months registration period, and they can choose whether to do their exam in a test center or remotely, from home or office.
The Exam comprises 100 multiple-choice questions.
In this article we will look for the book in detail, exploring each chapter of the book per number of pages, relevance in the exam, difficulty level, and content.
| Chapter | Question allocation |
| 1. Introduction to ESG | 4 to 8 |
| 2. The ESG market | 4 to 8 |
| 3. Environmental factors | 8 to 15 |
| 4. Social factors | 8 to 15 |
| 5. Governance factors | 8 to 15 |
| 6. Engagement and stewardship | 5 to 10 |
| 7. ESG analysis, valuation and integration | 20 to 30 |
| 8. ESG integrated portfolio construction and management | 10 to 20 |
| 9. Investment mandates, portfolio analytics and client reporting | 5 to 10 |
Source: CFA Institute
Looking at CFA ESG Pass Rates
Cracking the Pass Mark Code of CFA ESG Exam
Alma Mundus believes the pass mark for the CFA ESG Certificate is approximately 70%, likely falling between 71% and 74%. It’s important to note that this is not official information provided by the CFA Institute.
There may be various blogs, forums, and websites that disclose a pass mark range of 60-70%. However, we strongly recommend that candidates do not rely on this information. The CFA UK disclosed this pass mark range (60-70%) in 2019 as a reference for the initial testing period (June to August 2019) when the certificate was first launched.
Since 2021, the CFA ESG Certificate has been managed by the CFA Institute, but the actual pass mark has never been disclosed. It’s important to recognize the significant difference between a 60% and a 70% pass mark and what it should mean for candidates’ preparation.
If you would like to learn more about the pass mark, other topics and receive additional tips, we invite you to sign up for one of our CFA ESG FREE Webinars.
How hard is CFA ESG exam: Understanding the Level of Difficulty
The CFA designation is widely recognized as the most prestigious. To obtain the CFA designation, candidates must pass three consecutive examinations, known as CFA L1, L2, and L3.
In terms of difficulty and how hard is CFA ESG exam, the CFA ESG Certificate ranks at level 4 according to the CFA Institute’s difficulty ranking. Comparing it to other CFA Institute Certificates, the CFA ESG is on par with the Investment Management Certificate (IMC) in terms of difficulty, but it is considered easier than the CFA Level 1.
Unlike the CFA L1, the CFA ESG exam does not involve calculations to answer the 100 questions and requires less extensive reading. However, it is important to emphasize that the CFA ESG Certificate upholds the CFA Institute’s stringent standards and still requires a thorough study plan to ensure success.
It is also very important to understand the difference between the difficulty level of a CFA ESG Certificate and its classification/name.
In 2019, when the CFA ESG Certificate was launched, some people misled its level of difficulty (level 4 of difficulty) with its classification, thinking it was the CFA L4.
That is incorrect, a CFA L4 (this certificate does not exist) would be a Level 8 of difficulty, and that is not the case for the CFA ESG Certificate.
Echoes from Alumni: How Hard is CFA ESG exam?
- One-third of candidates reported that the exam was more difficult than anticipated;
- 41% found it to be of the expected difficulty;
- 26% found it to be easier than expected.
- Easier than I thought 26%
- Harder than expected 33%
- The Level I expected 41%
Source: Alma Mundus. Based on 230 Alumni survey in May 2023.
- Professional background and ESG knowledge level;
- Study plan, commitment, and preparation approach – in our opinion the most important factor.
Strategic Timing – Exam Dates, Registration, and Deadlines
Furthermore, candidates should be aware of the edition/version cycle.
Version or Edition cycles and their cut-off period
In August 2023, the CFA Institute announced policy changes for the forthcoming Version 5 or 2024 Edition. In summary, CFA ESG Candidates will be examined on the specific version/edition for which they have registered, regardless of the chosen exam date.
Candidates who register for the CFA ESG Certificate until December 31, 2023, will take the exam on Version 4, or 2023 Edition.
Timeline | Registration | Exam Due Date
Note: The CFA Institute provided this information on August, 2023
© Alma Mundus | All Rights Reserved
Candidates have six months to take the Exam upon registration. A Candidate who registers on December 31, 2023 (the last day possible to register under version 4) will have until June 30, 2024, to take the Exam.
Timeline | Registration | Exam Due Date
Note: The CFA Institute provided this information on August, 2023
© Alma Mundus | All Rights Reserved
Candidates have six months to take the Exam upon registration. A Candidate who registers on December 31, 2024 (the last day possible to register under version 5) will have until June 30, 2025, to take the Exam.
It is important to note that 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.
Note: The CFA Institute provided this information on August, 2023
© Alma Mundus | All Rights Reserved
Mastering the Material: Breaking down the syllabus, recommended study time, and strategies for tackling different sections
These numbers should be used as a reference only, as the actual amount of study time needed may vary depending on the individual’s background and circumstances.
| Chapter | Number of pages | Question allocation | Potential distribution of questions in the exam | Most challenging |
| 1. Introduction to ESG | 41 | 4 to 8 | 7 | 0% |
| 2. The ESG Market | 33 | 4 to 8 | 6 | 0% |
| 3. Environmental Factors | 100 | 8 to 15 | 12 | 16% |
| 4. Social Factors | 26 | 8 to 15 | 10 | 0% |
| 5. Governance Factors | 55 | 8 to 15 | 11 | 2% |
| 6. Engagement and Stewardship | 38 | 5 to 10 | 8 | 1% |
| 7. ESG Analysis, Valuation and Integration | 43 | 20 to 30 | 24 | 44% |
| 8. ESG Integrated Portfolio Construction and Management | 58 | 10 to 20 | 14 | 35% |
| 9. Investment Mandates, Portfolio Analytics and Client Reporting | 44 | 5 to 10 | 8 | 2% |
| 438 | 100 |
Source: CFA Institute and Alma Mundus.
It is important to note that the CFA ESG book has around 600 pages. The 438 pages count in our table refers to relevant/content pages only.
Road to Success: How to Prepare for the CFA ESG Certificate
The challenge lies more in the amount of content that needs to be consolidated rather than the complexity of the content.
To overcome this challenge within the recommended 100 -130 hours of study, successful candidates focus their studies on active learning tools such as questions practice and book readings. This recommendation is based on a survey conducted by Alma Mundus of over 100 successful CFA ESG Candidates.
- Questions Practice 64%
- Book Reading 24%
- Video Lessons 10%
- Other 2%
Source: Alma Mundus. Based on 50 Alumni survey in February 2024.
Study process (recommended)
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