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1. Indicate whether the following statement is true or false.
Entity-specific disclosures are required if a material sustainability matter is not covered or sufficiently detailed in the ESRS.
A) False
B) True
2. Which of the following can organizations use to identify actual and potential IROs during Step B of the double materiality assessment process? Select all options that apply.
A) Due diligence processes
B) Feedback from stakeholders
C) Financial materiality thresholds
D) The list of sustainability matters in ESRS 1 AR 16
3. Which of the following statements about the CSRD reporting mandate are correct? Select all that apply.
A) The organizations reporting under the CSRD do not need to report value chain information.
B) The CSRD requires a double materiality assessment to be conducted for sustainability reporting.
C) The CSRD mandate does not require external assurance for sustainability reporting.
D) The CSRD is tied to other EU legislation which companies subject to the CSRD may need to comply with.
E) The CSRD only applies to companies headquartered in the EU.
F) The organizations reporting under the CSRD need to follow a specific reporting format.
4. Which of the following is true about setting thresholds for financial materiality under the ESRS?
A) Financial materiality thresholds are based on the likelihood of occurrence and the potential magnitude of financial effects.
B) Organizations should only use monetary thresholds, such as revenue or costs.
C) Reputational risks cannot be considered financially material.
D) Thresholds should focus exclusively on the short-term time horizon.
5. Which of the following correctly fills the gaps in the paragraph below?
ESRS 2 IRO-1 mandates organizations to disclose their process to identify __________ and assess their materiality, including if and how consultation with __________ informed the outcome of the process.
Because most __________ arise from impacts, impact materiality is often the starting point for __________.
A) affected stakeholders; impacts, risks, and opportunities; financial materiality; risks and opportunities.
B) impacts, risks, and opportunities; affected stakeholders; risks and opportunities; financial materiality.
C) financial materiality; affected stakeholders; impacts, risks, and opportunities; risks and opportunities.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A,B,D | Question # 3 Answer: B,D,F | Question # 4 Answer: A | Question # 5 Answer: B |
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