CFA Institute Sustainable Investing Exam Difficulty: What to Expect

Kateryna Myrko
May 6
4 min read

The CFA Institute’s credential for responsible investment professionals has entered a new chapter. As of April 8, 2025, the well-known “Certificate in ESG Investing” is now officially the CFA Institute Sustainable Investing Certificate. This change is more than just a rebranding-it reflects the evolving scope of sustainable finance and the global demand for expertise in this area. If you are considering this certificate, understanding its difficulty and what to expect is essential for your success.

Why the Name Change? CFA Institute Sustainable Investing Exam Difficulty

The shift from “ESG Investing” to “Sustainable Investing” aligns the certificate’s title with the broader, long-term goals and impact of responsible investment. The CFA Institute emphasizes that the term “sustainable investing” is now recognized as a more comprehensive and precise descriptor, encompassing environmental, social, and governance factors while also addressing climate risk, biodiversity, and social impact. This change also responds to the evolving and sometimes politicized nature of the “ESG” label, especially in certain markets. CFA Institute Sustainable Investing Exam Difficulty

Key Points:

The curriculum remains unchanged; only the name has been updated.
All certificates and digital badges issued after April 8, 2025, reflect the new name.
Those who earned the previous ESG certificate will see their credentials updated automatically.

Exam Structure and Content

The Sustainable Investing Certificate exam is designed as a foundational, globally recognized credential for investment professionals. Here’s what you need to know about the exam’s structure:

Format: 100 multiple-choice and item set questions
Duration: 2 hours and 20 minutes
Delivery: Online, self-scheduled
Prerequisites: None required, though investment knowledge helps
Recommended Study Time: 100+ hours

Content Areas:

Introduction to sustainable investing and ESG factors
The sustainable investing market
Environmental, social, and governance factors
Stewardship and engagement
ESG analysis, valuation, and integration
Portfolio construction and management with ESG considerations
Client mandates, analytics, and reporting

The curriculum is updated annually to reflect the latest research and trends in sustainable investing, ensuring relevance for candidates worldwide.

How Difficult Is the Exam?

Perceived Difficulty

Most candidates find the exam accessible but not trivial. It is considered less rigorous than the CFA Program exams (Levels I–III), making it suitable for a wide range of professionals-both those new to sustainable investing and those seeking formal recognition of their skills.

Difficulty Highlights:

Breadth over Depth: The exam covers a wide array of topics, but does not require deep technical or quantitative expertise.
Application Focus: Many questions test your ability to apply ESG and sustainability concepts in real-world investment scenarios.
Time Management: With 100 questions in just over two hours, efficient pacing is essential.

Pass Rates and Benchmarks

Pass Rate: Recent data suggests pass rates between 72% and 81%, much higher than the 40–50% typical of CFA Level I–III exams.
Passing Score: Not officially published, but believed to be in the 60–70% range.

Comparison to Other CFA Institute Exams

Feature	Sustainable Investing Certificate	CFA Level I
Pass Rate	72–81%	40–50%
Study Hours Recommended	100+	300+
Calculation Required	Minimal	Extensive
Question Format	Multiple-choice, item set	Multiple-choice
Content Focus	Sustainable investing, ESG	Broad finance topics
Difficulty Ranking	Foundational	Graduate-level
Exam Duration	2h 20m	4.5h

What Makes the Exam Challenging?

Comprehensive Coverage: The exam requires familiarity with a broad range of sustainability topics, from climate risk to social responsibility and governance.
Current Events: Sustainable investing is rapidly evolving, so candidates must be aware of the latest trends, regulations, and best practices.
Scenario-Based Questions: Many questions require practical application, not just rote memorization.

Preparation Strategies

1. Know the Curriculum

Use the official CFA Institute learning materials, which are included with registration.
Focus on the most heavily weighted areas, particularly ESG analysis, valuation, and integration.

2. Practice Application

Complete mock exams and practice questions to get comfortable with the format and time constraints.
Review real-world case studies to understand how sustainable investing principles are applied.

3. Allocate Sufficient Study Time

The recommended 100+ hours is a minimum; those new to ESG or sustainable investing may need more.

4. Stay Updated

The curriculum is refreshed annually, so ensure you are studying the latest materials.

Who Should Pursue the Certificate?

Investment professionals integrating sustainability into their decision-making
Portfolio managers, analysts, consultants, and client-facing advisors
Anyone seeking a foundational credential in sustainable investing

No prior ESG or investment certification is required, making it accessible to a broad audience.

What to Expect on Exam Day

The exam is taken online, either at home or in a test center.
You have 2 hours and 20 minutes to answer 100 questions.
Results are delivered as pass/fail.
The credential is globally recognized and will be updated automatically to the new name if you pass after April 8, 2025.

Key Takeaways

The CFA Institute Sustainable Investing Certificate is a foundational, globally recognized credential reflecting the growing importance of sustainability in finance.
The exam is accessible, with a high pass rate, but requires disciplined study and practical understanding of sustainable investing concepts.
The recent name change reflects the evolving landscape of responsible investment and ensures the certificate remains relevant and respected worldwide.

By understanding the exam’s structure, difficulty, and preparation strategies, you can approach the CFA Institute Sustainable Investing Certificate with confidence and position yourself at the forefront of the sustainable finance movement.

Enhance your Sustainable Investing Certificate (CFA ESG) exam preparation with our comprehensive study packages —get started today to achieve success in 2025