Practice Test Geeks(CEP) Certified Environmental, Social, and Governance (ESG) Planner Practice Test
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CEP ESG Reporting & Disclosure Flashcards

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

Read the first 6 CEP ESG Reporting & Disclosure flashcards as text

  1. Which organization developed the Global Reporting Initiative (GRI) Standards used for sustainability reporting?

    Answer: The Global Reporting Initiative, an independent international standards organization

    GRI is an independent international organization that has pioneered sustainability reporting standards since 1997, providing a comprehensive framework used by thousands of organizations globally.

  2. What is 'double materiality' as applied in ESG reporting frameworks like the EU's CSRD?

    Answer: Considering both how sustainability issues affect the company financially and how the company impacts society and the environment

    Double materiality requires companies to assess both 'outside-in' (financial materiality) and 'inside-out' (impact materiality) perspectives on sustainability topics.

  3. What is the primary purpose of the SASB Standards in ESG disclosure?

    Answer: To provide industry-specific sustainability accounting standards that identify financially material ESG topics for investors

    SASB Standards identify the subset of ESG issues most likely to be financially material for each of 77 industries, helping companies communicate decision-useful information to investors.

  4. What does the SEC's climate disclosure rule (finalized 2024) require of large US public companies?

    Answer: Disclosure of material climate-related risks, Scope 1 and Scope 2 GHG emissions, and transition plan details in SEC filings

    The SEC's 2024 climate rule requires large accelerated filers to disclose material climate risks, Scope 1 and 2 emissions with assurance, and climate-related financial impacts in annual reports.

  5. Which ESG rating agency methodology is known for measuring a company's exposure to industry-specific material ESG risks?

    Answer: Sustainalytics ESG Risk Ratings

    Sustainalytics ESG Risk Ratings measure the degree to which a company's enterprise value is at risk from ESG factors, distinguishing between managed and unmanaged risk.

  6. What is 'greenwashing' in the context of ESG disclosure?

    Answer: Making misleading or unsubstantiated claims about environmental or social performance to appear more sustainable than reality

    Greenwashing involves companies overstating or misrepresenting their environmental or social credentials in marketing or disclosures, misleading investors and consumers.