CCP ESG Frameworks & CSRD 2

Question 1

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

Accepted Answer

Large EU public-interest entities already under NFRD

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

European Financial Reporting Advisory Group (EFRAG)

Answer

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

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

ESRS 1

Answer

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

(CCP) Certified Climate Change Professional Practice Test

(CCP) Certified Climate Change Professional Practice Test

CCP ESG Frameworks & CSRD 2