ESG Reporting & Sustainability Flashcards
7 cards from real CIRO 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 Reporting & Sustainability flashcards as text
Which framework specifically requires companies to disclose climate-related financial risks using four thematic areas: governance, strategy, risk management, and metrics?
Answer: TCFD Recommendations
The Task Force on Climate-related Financial Disclosures (TCFD) organizes its recommendations around governance, strategy, risk management, and metrics/targets.
An investor relations officer is asked about Scope 3 emissions. Which of the following BEST describes Scope 3?
Answer: All other indirect emissions in the value chain not owned by the company
Scope 3 covers all indirect emissions that occur in a company's value chain, including both upstream and downstream activities not owned or controlled by the company.
Under SEC climate disclosure rules, what is the materiality threshold generally applied to determine if Scope 3 emissions must be disclosed?
Answer: If material to investors or if the company has set Scope 3 reduction targets
The SEC's climate disclosure rules require Scope 3 disclosure when those emissions are material to investors or when the company has set public Scope 3 emission reduction targets.
What does the acronym 'SASB' stand for in the context of ESG reporting?
Answer: Sustainability Accounting Standards Board
SASB stands for Sustainability Accounting Standards Board, which develops industry-specific sustainability accounting standards for investor disclosure.
A company's ESG report claims it is 'carbon neutral.' Which of the following MOST accurately reflects what this claim should mean?
Answer: The company offsets its net greenhouse gas emissions to achieve a zero balance
Carbon neutral means a company balances its greenhouse gas emissions with equivalent offsets or removals, achieving a net-zero carbon balance.
Which ESG reporting principle requires that companies disclose all information that a reasonable investor would consider significant in making investment decisions?
Answer: Materiality
Materiality in ESG reporting means disclosing all ESG information that a reasonable investor would consider significant or decision-useful.
The International Sustainability Standards Board (ISSB) was established under which organization?
Answer: IFRS Foundation
The ISSB was established by the IFRS Foundation in 2021 to develop a global baseline of sustainability-related financial disclosure standards.