ISSB Resources 5

Question 1

Under IFRS S2, what does the GHG Protocol's Global Warming Potential (GWP) metric accomplish for resource-related emissions reporting?

Accepted Answer

It converts emissions of different greenhouse gases into a common CO₂-equivalent unit for consistent aggregation

Answer

GWP converts the warming effect of different greenhouse gases — such as methane and nitrous oxide from resource use — into CO₂-equivalent units, enabling consistent aggregation and comparability across an entity's operations.

Question 2

Under ISSB, what distinguishes 'cross-industry' resource metrics from 'industry-specific' ones?

Accepted Answer

Cross-industry metrics are required of all entities regardless of sector; industry-specific ones apply only to relevant industries

Answer

IFRS S2 defines cross-industry metrics (such as Scope 1, 2, and 3 emissions and energy consumption) that all entities must report, while industry-specific resource metrics from SASB apply only to relevant sectors.

Question 3

What is the primary purpose of scenario analysis in ISSB resource risk disclosures under IFRS S2?

Accepted Answer

It must be used to assess and disclose the resilience of an entity's strategy and resource base across different climate futures

Answer

IFRS S2 requires entities to use climate scenario analysis to assess and disclose the resilience of their strategies — including resource dependencies — against a range of plausible climate pathways.

Question 4

Under ISSB, how should an entity approach biodiversity as a natural resource dependency in its disclosures?

Accepted Answer

When biodiversity is material to the entity's risks or opportunities, it must be disclosed under IFRS S1's general requirements

Answer

Under IFRS S1, any material sustainability-related risk or opportunity — including reliance on biodiversity as a natural resource — must be disclosed when it could reasonably affect the entity's financial performance, regardless of sector.

Question 5

Under IFRS S2, what is the minimum greenhouse gas emissions scope that all entities must disclose, irrespective of materiality?

Accepted Answer

Scope 1 and Scope 2 emissions

Answer

IFRS S2 requires all entities to disclose Scope 1 (direct) and Scope 2 (purchased energy) emissions as a baseline, with Scope 3 required when it is material or when the entity has set Scope 3 targets.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Resources 5