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ESG Frameworks & CSRD Flashcards

7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 ESG Frameworks & CSRD flashcards as text

  1. Under the CSRD, which companies are required to report starting with fiscal year 2025?

    Answer: Large EU public-interest entities already under NFRD

    Large public-interest entities already subject to the Non-Financial Reporting Directive (NFRD) must comply with CSRD starting FY2025.

  2. What does the concept of 'double materiality' require companies to assess under CSRD?

    Answer: Financial materiality from the outside-in AND impact materiality from the inside-out

    Double materiality requires companies to assess how sustainability issues affect the business (financial materiality) and how the business affects society and environment (impact materiality).

  3. Which standard-setting body develops the European Sustainability Reporting Standards (ESRS) that underpin CSRD?

    Answer: European Financial Reporting Advisory Group (EFRAG)

    EFRAG was mandated by the European Commission to develop ESRS, the technical standards companies use to comply with CSRD.

  4. How does the GRI Standards approach materiality differently from ISSB's IFRS S1/S2?

    Answer: GRI focuses on impact materiality for all stakeholders; ISSB focuses on enterprise value for investors

    GRI uses impact materiality centered on effects on people and planet, while ISSB's standards focus on sustainability risks and opportunities that affect enterprise value for investors.

  5. Which ESRS cross-cutting standard establishes general requirements including the materiality assessment process?

    Answer: ESRS 1

    ESRS 1 sets the general requirements applicable to all sustainability disclosures, including how to conduct the materiality assessment.

  6. A US-headquartered company with €150M net turnover in the EU and an EU branch must comply with CSRD under which provision?

    Answer: Third-country company rules triggering consolidated reporting obligations

    CSRD extends to non-EU parent companies generating over €150M in EU net turnover, requiring them to publish group-level sustainability reports.

  7. In the SASB framework, industry-specific standards are organized by sector classifications defined in which system?

    Answer: Sustainable Industry Classification System (SICS)

    SASB uses its own Sustainable Industry Classification System (SICS) to group 77 industries into 11 sectors, reflecting sustainability-relevant business model similarities.