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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. A company discloses its Scope 3 Category 11 emissions. What does this category represent?

    Answer: Use of sold products by end consumers

    Scope 3 Category 11 covers emissions from the use of products sold by the reporting company, often one of the largest sources of value-chain emissions for consumer goods companies.

  2. The California Climate Corporate Data Accountability Act (SB 253) requires large companies doing business in California to publicly disclose Scope 3 emissions beginning in:

    Answer: 2026

    SB 253 requires Scope 1 and Scope 2 disclosure starting in 2026 and Scope 3 disclosure starting in 2027, with companies with revenues over $1 billion in scope.

  3. Under the GRI Standards, a company that reports 'in accordance' with GRI must include which of the following?

    Answer: A GRI content index identifying all applicable disclosures and their locations

    Companies reporting in accordance with GRI Standards must include a GRI Content Index listing all required disclosures, their locations in the report, and any omissions.

  4. Which international framework specifically addresses human rights due diligence in supply chains and aligns with the UN Guiding Principles on Business and Human Rights?

    Answer: OECD Guidelines for Multinational Enterprises

    The OECD Guidelines for Multinational Enterprises include chapters on human rights that align with the UN Guiding Principles (UNGPs) and provide guidance on supply chain due diligence.

  5. An ESG analyst finds that a company's sustainability report omits a required GRI disclosure citing 'confidentiality constraints.' Under GRI Standards, the company must:

    Answer: Identify the omitted disclosure in the GRI Content Index, specify the reason for omission, and explain why confidentiality applies

    GRI requires that omissions be clearly identified in the Content Index along with the reason and, where relevant, an explanation of why the information cannot be provided.

  6. The term 'greenwashing' in the regulatory context most precisely refers to:

    Answer: Misleading claims or disclosures that overstate a company's environmental performance or commitments

    Greenwashing refers to deceptive or misleading communications about environmental performance, making a company, product, or policy appear more sustainable than it actually is.

  7. The 'comply or explain' approach in ESG governance codes means that companies must:

    Answer: Either follow each code provision or explain publicly why they have not done so

    Under 'comply or explain,' companies must apply each recommendation of a governance code or, if they deviate, publicly disclose and explain the reason for non-compliance.