ISSB Trivia 3 — Questions and Answers
Question 1: What are the four core content pillars of IFRS S1 and S2 disclosures?
- Strategy, Risk, Opportunity, Performance
- Governance, Strategy, Risk Management, Metrics & Targets (Correct answer)
- Materiality, Scope, Boundary, Assurance
- Environment, Social, Governance, Financial
Correct answer: Governance, Strategy, Risk Management, Metrics & Targets
Both IFRS S1 and S2 are structured around the four pillars: Governance, Strategy, Risk Management, and Metrics & Targets.
Question 2: Under IFRS S2, which three scopes of greenhouse gas emissions must companies disclose?
- Scope 1, Scope 2, and Scope 3 (Correct answer)
- Direct, Indirect, and Supply Chain
- Upstream, Operations, and Downstream
- Production, Transport, and End-of-Life
Correct answer: Scope 1, Scope 2, and Scope 3
IFRS S2 requires disclosure of Scope 1 (direct), Scope 2 (purchased energy), and Scope 3 (value chain) GHG emissions.
Question 3: What does IFRS S1 require companies to use as industry-specific disclosure guidance?
- GRI Sector Standards
- SASB Standards (Correct answer)
- ESRS Sector Standards
- CDP Questionnaires
Correct answer: SASB Standards
IFRS S1 references SASB Standards as the primary source of industry-based metrics and disclosure requirements.
Question 4: What is the 'connected information' requirement under IFRS S1?
- Linking ESG data to supply chain partners
- Connecting sustainability disclosures to financial statements (Correct answer)
- Integrating climate data with carbon registries
- Coordinating with peer company disclosures
Correct answer: Connecting sustainability disclosures to financial statements
IFRS S1 requires sustainability disclosures to be connected to the financial statements, showing how sustainability factors affect financial position.
Question 5: When were IFRS S1 and IFRS S2 officially issued?
- November 2021
- January 2023
- June 2023 (Correct answer)
- December 2024
Correct answer: June 2023
IFRS S1 and IFRS S2 were officially issued by the ISSB in June 2023.
Question 6: Which scenario analysis approach does IFRS S2 require for climate-related disclosures?
- Mandatory use of IEA Net Zero scenario only
- Single company-defined scenario
- Climate-related scenario analysis to assess climate resilience (Correct answer)
- Regulatory stress testing as defined by central banks
Correct answer: Climate-related scenario analysis to assess climate resilience
IFRS S2 requires entities to disclose information about their use of climate-related scenario analysis to assess climate resilience.
Question 7: What transition relief did the ISSB provide for Scope 3 GHG disclosures in the first year of applying IFRS S2?
- Scope 3 disclosures are permanently optional
- Companies may omit Scope 3 disclosures in the first year (Correct answer)
- Scope 3 must be disclosed but not verified
- Scope 3 applies only to companies over $1 billion revenue
Correct answer: Companies may omit Scope 3 disclosures in the first year
The ISSB provided a one-year transition relief allowing companies to omit Scope 3 disclosures in their first year of applying IFRS S2.
ISSB Trivia 3
What are the four core content pillars of IFRS S1 and S2 disclosures?