ISSB Resources 2

Question 1

Under IFRS S2, what type of scenario analysis must entities include when assessing climate-related risks to natural resources?

Accepted Answer

At least one scenario consistent with limiting global warming to 1.5°C

Answer

IFRS S2 requires entities to use climate-related scenario analysis that includes at least one scenario aligned with the Paris Agreement's 1.5°C warming limit.

Question 2

How does IFRS S1 define the scope of 'value chain' for resource dependency disclosures?

Accepted Answer

All activities, resources, and relationships from raw material extraction through to end use by customers

Answer

IFRS S1 defines the value chain broadly to encompass all activities, resources, and relationships across the entire chain from raw material sourcing through end-customer use.

Question 3

Under ISSB standards, which industry classification system is most frequently referenced for sector-specific resource metrics?

Accepted Answer

SASB (Sustainability Accounting Standards Board) Standards

Answer

IFRS S1 explicitly references SASB standards as a primary source of guidance for industry-specific sustainability metrics, including those related to resource use.

Question 4

What term does IFRS S1 use to describe the inputs an entity depends on to create value over time?

Accepted Answer

Resources and relationships

Answer

IFRS S1 uses the phrase 'resources and relationships' to encompass the natural, human, financial, and social capital that entities rely on to create value.

Question 5

Under IFRS S2, which metrics are required when water is identified as a material climate-related risk?

Accepted Answer

Metrics on water consumption, withdrawal, and discharge especially in water-stressed areas

Answer

When water is material, IFRS S2 requires quantitative metrics on consumption, withdrawal, and discharge with particular emphasis on water-stressed geographic areas.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Resources 2