ISSB Sustainability Reporting Framework Concepts 2

Question 1

What is the purpose of SASB (Sustainability Accounting Standards Board) standards in the ISSB ecosystem?

Accepted Answer

SASB provides industry-specific disclosure topics and metrics that supplement IFRS S1's general requirements across 77 industry standards

Answer

SASB Standards identify industry-specific sustainability topics and quantitative metrics, and IFRS S1 references them as a source of guidance for entities in those industries.

Question 2

In ISSB's conceptual framework, what does 'comparability' as a qualitative characteristic require?

Accepted Answer

Disclosures should enable users to identify and understand similarities and differences across entities and over time

Answer

Comparability under IFRS S1 means disclosures should be consistent within an entity over time and allow meaningful comparison across entities.

Question 3

What is the 'integrated reporting' concept pioneered by the IIRC and how did it influence ISSB?

Accepted Answer

Integrated reporting focuses on how organizations create value across financial and non-financial capitals, influencing ISSB's connectivity concept

Answer

The IIRC's integrated reporting framework emphasized value creation across multiple capitals, directly influencing ISSB's connectivity principle linking sustainability to financial outcomes.

Question 4

How does ISSB's framework address Scope 2 market-based emissions accounting?

Accepted Answer

IFRS S2 requires entities to disclose both location-based and market-based Scope 2 emissions, allowing full transparency on renewable energy procurement

Answer

IFRS S2 requires both Scope 2 methodologies to be disclosed: location-based reflects grid average emissions, while market-based reflects actual contractual instruments like RECs.

Question 5

What is the 'Paris Agreement' and why is it significant to IFRS S2?

Accepted Answer

The Paris Agreement is an international climate treaty aiming to limit global warming to 1.5–2°C, and IFRS S2 requires entities to consider scenarios consistent with its goals

Answer

IFRS S2 explicitly requires consideration of a 1.5°C scenario consistent with the Paris Agreement, making the treaty a central reference for climate scenario analysis.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Sustainability Reporting Framework Concepts 2