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Reporting Standards & Regulatory Compliance Flashcards

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

Read the first 7 Reporting Standards & Regulatory Compliance flashcards as text

  1. Under the SEC's climate disclosure rules, which companies are required to disclose Scope 1 and Scope 2 greenhouse gas emissions?

    Answer: Only large accelerated filers and accelerated filers

    The SEC's climate disclosure rules require large accelerated filers and accelerated filers to disclose Scope 1 and Scope 2 emissions, with smaller reporting companies exempt.

  2. Which GRI standard specifically addresses an organization's material topics and the process for determining them?

    Answer: GRI 103: Management Approach

    GRI 103: Management Approach explains how an organization identifies material topics and describes its management approach for each topic.

  3. The ISSB's IFRS S1 standard requires companies to disclose sustainability-related risks and opportunities over which time horizons?

    Answer: Short-, medium-, and long-term

    IFRS S1 requires disclosure of sustainability-related risks and opportunities across short-, medium-, and long-term time horizons as defined by the entity.

  4. A company uses the CDP reporting framework. What does CDP primarily focus on?

    Answer: Environmental transparency including climate, water, and forests

    CDP (formerly Carbon Disclosure Project) focuses on environmental transparency, collecting data on climate change, water security, and deforestation from companies and cities.

  5. Under the EU's Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) use a 'double materiality' concept. What does this mean?

    Answer: Companies assess both impact materiality (effects on environment/society) and financial materiality (risks to the business)

    Double materiality requires companies to assess both how sustainability issues affect the business financially (outside-in) and how the business impacts the environment and society (inside-out).

  6. Which of the following best describes the role of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations?

    Answer: A voluntary framework providing guidance on disclosing climate-related financial risks and opportunities

    TCFD provides voluntary recommendations organized around four pillars — governance, strategy, risk management, and metrics/targets — to help companies disclose climate-related financial risks.

  7. An ESG consultant is helping a mid-size US public company prepare its first sustainability report aligned with GRI Standards. Which document should the company reference to select the correct GRI reporting option?

    Answer: GRI 1: Foundation 2021

    GRI 1: Foundation 2021 sets out the purpose of the GRI Standards, key concepts, and the requirements for reporting in accordance with GRI, making it the starting point for any GRI-aligned report.