GRI ESRS-Professional Practice Exams
Last updated on Oct 21,2026- Exam Code: ESRS-Professional
- Exam Name: ESRS Professional Certification Exam
- Certification Provider: GRI
- Latest update: Oct 21,2026
Question #11
Indicate whether the following statement is true or false.
All EU Member States decided that only statutory financial auditors are allowed to conduct the assurance of the sustainability statement, excluding other audit firms or Independent Assurance Service Providers.
- A . True
- B . False
Correct Answer: B
B
Explanation:
Not all EU Member States have decided that only statutory financial auditors are allowed to conduct the assurance of the sustainability statement. The Corporate Sustainability Reporting Directive (CSRD) mandates that sustainability reports be assured by an external party, but it allows Member States to decide whether assurance engagements can be performed by firms other than statutory financial auditors.
Key Provisions:
Limited Assurance Requirement:
The CSRD introduces a phased approach to assurance, starting with limited assurance and transitioning to reasonable assurance over time (expected by 2028). Initially, limited assurance is required across all Member States.
Flexibility for Member States:
EU Member States have discretion to allow other independent assurance service providers to conduct the sustainability assurance, in addition to statutory auditors.
Some countries may restrict sustainability assurance to statutory auditors, but this is not an EU-wide rule.
Upcoming EU Assurance Standards:
The European Commission is working on developing a common EU assurance standard for sustainability reporting.
The Committee of European Auditing Oversight Bodies (CEAOB) has issued non-binding guidelines on limited assurance for sustainability reporting.
Thus, the statement is false because not all EU Member States have restricted sustainability assurance to statutory financial auditors. Some allow other independent assurance providers to conduct the engagements.
Official
Reference: CSRD (Directive (EU) 2022/2464) Assurance Provisions.
EU Platform on Sustainable Finance Report (February 2025) C Assurance Standards and Guidelines.
CEAOB Guidelines on Limited Assurance for Sustainability Reporting (September 2024).
B
Explanation:
Not all EU Member States have decided that only statutory financial auditors are allowed to conduct the assurance of the sustainability statement. The Corporate Sustainability Reporting Directive (CSRD) mandates that sustainability reports be assured by an external party, but it allows Member States to decide whether assurance engagements can be performed by firms other than statutory financial auditors.
Key Provisions:
Limited Assurance Requirement:
The CSRD introduces a phased approach to assurance, starting with limited assurance and transitioning to reasonable assurance over time (expected by 2028). Initially, limited assurance is required across all Member States.
Flexibility for Member States:
EU Member States have discretion to allow other independent assurance service providers to conduct the sustainability assurance, in addition to statutory auditors.
Some countries may restrict sustainability assurance to statutory auditors, but this is not an EU-wide rule.
Upcoming EU Assurance Standards:
The European Commission is working on developing a common EU assurance standard for sustainability reporting.
The Committee of European Auditing Oversight Bodies (CEAOB) has issued non-binding guidelines on limited assurance for sustainability reporting.
Thus, the statement is false because not all EU Member States have restricted sustainability assurance to statutory financial auditors. Some allow other independent assurance providers to conduct the engagements.
Official
Reference: CSRD (Directive (EU) 2022/2464) Assurance Provisions.
EU Platform on Sustainable Finance Report (February 2025) C Assurance Standards and Guidelines.
CEAOB Guidelines on Limited Assurance for Sustainability Reporting (September 2024).
Question #12
Which activities are part of Step A: Understanding the Context in the double materiality assessment
process? Select all options that apply.
- A . Mapping the organization’s value chain
- B . Engaging with affected stakeholders to gather input
- C . Analyzing the legal and regulatory landscape
- D . Developing a list of material risks and opportunities
Correct Answer: A, B, C
A, B, C
Explanation:
The double materiality assessment process consists of multiple steps, with Step A: Understanding the Context focusing on setting the groundwork for identifying material impacts, risks, and opportunities (IROs).
Step A includes:
Mapping the organization’s value chain (Option A)
This step involves identifying all elements of the organization’s value chain, including suppliers, distributors, and business partners, to understand where sustainability impacts occur.
It helps in pinpointing potential sustainability matters, risks, and opportunities related to both impact and financial materiality.
Engaging with affected stakeholders to gather input (Option B)
Stakeholder engagement is a critical part of the materiality assessment as it informs the organization about direct and indirect sustainability impacts.
The ESRS guidance stresses that businesses must engage with affected stakeholders (e.g., employees, communities, consumers) and sustainability experts as part of the due diligence process. Analyzing the legal and regulatory landscape (Option C)
Organizations must review applicable laws, regulatory frameworks, and international sustainability commitments that may affect their sustainability reporting obligations.
This ensures compliance with EU regulations (CSRD, ESRS, Taxonomy Regulation, SFDR) and other relevant legal requirements.
Incorrect Answer
D. Developing a list of material risks and opportunities
This step belongs to Step B: Identifying Material Sustainability Matters, where the organization formally identifies and assesses material IROs.
Step A is only about gathering contextual information to inform this process.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772, Section 3.3 – Double materiality and materiality assessment process.
EFRAG IG 1: Materiality Assessment, Chapter 2.2 – Understanding the context and engagement with affected stakeholders.
EFRAG Compilation of Explanations JanuaryCNovember 2024 – Provides clarifications on stakeholder engagement and legal context review in Step A.
A, B, C
Explanation:
The double materiality assessment process consists of multiple steps, with Step A: Understanding the Context focusing on setting the groundwork for identifying material impacts, risks, and opportunities (IROs).
Step A includes:
Mapping the organization’s value chain (Option A)
This step involves identifying all elements of the organization’s value chain, including suppliers, distributors, and business partners, to understand where sustainability impacts occur.
It helps in pinpointing potential sustainability matters, risks, and opportunities related to both impact and financial materiality.
Engaging with affected stakeholders to gather input (Option B)
Stakeholder engagement is a critical part of the materiality assessment as it informs the organization about direct and indirect sustainability impacts.
The ESRS guidance stresses that businesses must engage with affected stakeholders (e.g., employees, communities, consumers) and sustainability experts as part of the due diligence process. Analyzing the legal and regulatory landscape (Option C)
Organizations must review applicable laws, regulatory frameworks, and international sustainability commitments that may affect their sustainability reporting obligations.
This ensures compliance with EU regulations (CSRD, ESRS, Taxonomy Regulation, SFDR) and other relevant legal requirements.
Incorrect Answer
D. Developing a list of material risks and opportunities
This step belongs to Step B: Identifying Material Sustainability Matters, where the organization formally identifies and assesses material IROs.
Step A is only about gathering contextual information to inform this process.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772, Section 3.3 – Double materiality and materiality assessment process.
EFRAG IG 1: Materiality Assessment, Chapter 2.2 – Understanding the context and engagement with affected stakeholders.
EFRAG Compilation of Explanations JanuaryCNovember 2024 – Provides clarifications on stakeholder engagement and legal context review in Step A.
Question #13
What must organizations disclose under the ESRS regarding their material impacts, risks, and opportunities? Select all that apply.
- A . The outcomes of their double materiality assessment
- B . Information outlined in the topical ESRS and sector-specific standards
- C . Minimum Disclosure Requirements on policies, actions, and targets
- D . A general overview of their sustainability policies, even if unrelated to specific material matters
Correct Answer: A, B, C
A, B, C
Explanation:
Under ESRS, organizations are required to disclose material impacts, risks, and opportunities (IRO) in accordance with double materiality principles. The ESRS framework emphasizes transparency and structured reporting of sustainability matters that are material from both impact and financial perspectives.
Key Disclosure Requirements for Material IROs
According to ESRS 2, organizations must disclose:
(A) The outcomes of their double materiality assessment: Organizations need to explain how they determined material sustainability matters, covering both impact and financial materiality.
(B) Information outlined in the topical ESRS and sector-specific standards: The disclosure of IROs must align with specific ESRS topical standards (e.g., ESRS E1 for climate change, ESRS S1 for own workforce) and sector-specific standards, ensuring comprehensive reporting.
(C) Minimum Disclosure Requirements on policies, actions, and targets: Organizations must disclose policies, strategies, action plans, and progress tracking mechanisms related to managing material sustainability risks and opportunities. ESRS mandates these disclosures to provide transparency on an entity’s approach to risk mitigation and opportunity realization.
Incorrect Option
(D) A general overview of their sustainability policies, even if unrelated to specific material matters: ESRS does not require companies to provide general sustainability policy overviews unless they relate to material sustainability matters. The focus is on material disclosures that affect business operations or external stakeholders.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772, ESRS 2, Section 4.1 & IRO-1 C Covers disclosure requirements for identifying and assessing material impacts, risks, and opportunities.
EFRAG Compilation Explanations (January C November 2024) C Details about ESRS 1 and ESRS 2 disclosure requirements on materiality.
A, B, C
Explanation:
Under ESRS, organizations are required to disclose material impacts, risks, and opportunities (IRO) in accordance with double materiality principles. The ESRS framework emphasizes transparency and structured reporting of sustainability matters that are material from both impact and financial perspectives.
Key Disclosure Requirements for Material IROs
According to ESRS 2, organizations must disclose:
(A) The outcomes of their double materiality assessment: Organizations need to explain how they determined material sustainability matters, covering both impact and financial materiality.
(B) Information outlined in the topical ESRS and sector-specific standards: The disclosure of IROs must align with specific ESRS topical standards (e.g., ESRS E1 for climate change, ESRS S1 for own workforce) and sector-specific standards, ensuring comprehensive reporting.
(C) Minimum Disclosure Requirements on policies, actions, and targets: Organizations must disclose policies, strategies, action plans, and progress tracking mechanisms related to managing material sustainability risks and opportunities. ESRS mandates these disclosures to provide transparency on an entity’s approach to risk mitigation and opportunity realization.
Incorrect Option
(D) A general overview of their sustainability policies, even if unrelated to specific material matters: ESRS does not require companies to provide general sustainability policy overviews unless they relate to material sustainability matters. The focus is on material disclosures that affect business operations or external stakeholders.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772, ESRS 2, Section 4.1 & IRO-1 C Covers disclosure requirements for identifying and assessing material impacts, risks, and opportunities.
EFRAG Compilation Explanations (January C November 2024) C Details about ESRS 1 and ESRS 2 disclosure requirements on materiality.
Question #14
Indicate whether the following statement is true or false.
Under the ESRS, organizations cannot leverage on their ongoing dialogue with stakeholders for the materiality assessment.
- A . True
- B . False
Correct Answer: B
B
Explanation:
Under the European Sustainability Reporting Standards (ESRS), organizations can leverage their ongoing dialogue with stakeholders for the materiality assessment. The ESRS explicitly acknowledges that stakeholder engagement plays a fundamental role in assessing material impacts, risks, and opportunities.
Stakeholder Engagement is Central to Materiality Assessment
ESRS 1 and ESRS 2 emphasize that organizations should integrate stakeholder perspectives into their materiality assessments. Engagement with affected stakeholders is central to the undertaking’s ongoing due diligence process and sustainability materiality assessment. This includes processes to identify and assess actual and potential negative impacts, which inform the identification of material sustainability topics.
ESRS Does Not Mandate a Specific Stakeholder Engagement Approach
While stakeholder input is considered valuable, the ESRS does not prescribe a mandatory format or behavior for engagement. Companies have flexibility in determining how they engage with stakeholders.
IG 1 Materiality Assessment FAQ 15 states:
"The ESRS require disclosure on the materiality assessment and its outcomes but do not mandate specific behavior on stakeholder engagement or the due diligence process.". Stakeholders Can Provide Objective Evidence
The materiality assessment should be based as much as possible on objective data and evidence, but stakeholder perspectives can be a source of supporting evidence for impact materiality.
The relevance of stakeholder input depends on how much they are affected by an organization’s activities (severity and likelihood of impacts).
Due Diligence and Materiality Assessment
The due diligence process includes stakeholder engagement, which informs the materiality assessment. Organizations must report how they integrate stakeholder feedback into identifying and assessing material issues.
Nature as a Silent Stakeholder
The ESRS even recognizes that ecological data and conservation indicators should be considered as proxy indicators for stakeholder engagement where human stakeholders are absent (e.g., in cases of biodiversity impact assessments).
Thus, the statement in the question is false. Organizations are encouraged to utilize their existing stakeholder engagement mechanisms to inform their materiality assessments under ESRS.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772.
Compilation Explanations January – November 2024.
ESRS 1 & 2 Guidelines on Double Materiality.
B
Explanation:
Under the European Sustainability Reporting Standards (ESRS), organizations can leverage their ongoing dialogue with stakeholders for the materiality assessment. The ESRS explicitly acknowledges that stakeholder engagement plays a fundamental role in assessing material impacts, risks, and opportunities.
Stakeholder Engagement is Central to Materiality Assessment
ESRS 1 and ESRS 2 emphasize that organizations should integrate stakeholder perspectives into their materiality assessments. Engagement with affected stakeholders is central to the undertaking’s ongoing due diligence process and sustainability materiality assessment. This includes processes to identify and assess actual and potential negative impacts, which inform the identification of material sustainability topics.
ESRS Does Not Mandate a Specific Stakeholder Engagement Approach
While stakeholder input is considered valuable, the ESRS does not prescribe a mandatory format or behavior for engagement. Companies have flexibility in determining how they engage with stakeholders.
IG 1 Materiality Assessment FAQ 15 states:
"The ESRS require disclosure on the materiality assessment and its outcomes but do not mandate specific behavior on stakeholder engagement or the due diligence process.". Stakeholders Can Provide Objective Evidence
The materiality assessment should be based as much as possible on objective data and evidence, but stakeholder perspectives can be a source of supporting evidence for impact materiality.
The relevance of stakeholder input depends on how much they are affected by an organization’s activities (severity and likelihood of impacts).
Due Diligence and Materiality Assessment
The due diligence process includes stakeholder engagement, which informs the materiality assessment. Organizations must report how they integrate stakeholder feedback into identifying and assessing material issues.
Nature as a Silent Stakeholder
The ESRS even recognizes that ecological data and conservation indicators should be considered as proxy indicators for stakeholder engagement where human stakeholders are absent (e.g., in cases of biodiversity impact assessments).
Thus, the statement in the question is false. Organizations are encouraged to utilize their existing stakeholder engagement mechanisms to inform their materiality assessments under ESRS.
Official
Reference: Commission Delegated Regulation (EU) 2023/2772.
Compilation Explanations January – November 2024.
ESRS 1 & 2 Guidelines on Double Materiality.
Question #15
What are the two categories of stakeholders identified in the ESRS?
- A . Affected stakeholders and users of sustainability statements.
- B . Primary and secondary stakeholders.
- C . Internal and external stakeholders.
Correct Answer: A
A
Explanation:
The European Sustainability Reporting Standards (ESRS) categorize stakeholders into two main groups:
Affected Stakeholders:
These are individuals or groups whose interests are affected (positively or negatively) by the undertaking’s activities and business relationships across its value chain.
Examples include workers (own workforce and those in the value chain), affected communities, consumers, and end-users.
The identification of affected stakeholders plays a crucial role in an organization’s sustainability due diligence and materiality assessment processes.
Users of Sustainability Statements:
These are primary users of sustainability disclosures, including investors, lenders, and other creditors.
Additional users include business partners, trade unions, civil society organizations, non-governmental organizations (NGOs), governments, analysts, and academics.
The ESRS framework emphasizes the importance of engagement with affected stakeholders as part of an undertaking’s due diligence and materiality assessment process, ensuring that material impacts, risks, and opportunities are adequately identified and reported. Official
Reference: Commission Delegated Regulation (EU) 2023/2772, ESRS 1, Section 3.1 – Defines the two main groups of stakeholders.
ESRS 2 SBM-2 (Interests and Views of Stakeholders) – Covers how affected stakeholders’ views inform an undertaking’s strategy.
EFRAG Guidance on Stakeholder Engagement and Double Materiality – Reinforces the role of affected stakeholders in sustainability assessments.
A
Explanation:
The European Sustainability Reporting Standards (ESRS) categorize stakeholders into two main groups:
Affected Stakeholders:
These are individuals or groups whose interests are affected (positively or negatively) by the undertaking’s activities and business relationships across its value chain.
Examples include workers (own workforce and those in the value chain), affected communities, consumers, and end-users.
The identification of affected stakeholders plays a crucial role in an organization’s sustainability due diligence and materiality assessment processes.
Users of Sustainability Statements:
These are primary users of sustainability disclosures, including investors, lenders, and other creditors.
Additional users include business partners, trade unions, civil society organizations, non-governmental organizations (NGOs), governments, analysts, and academics.
The ESRS framework emphasizes the importance of engagement with affected stakeholders as part of an undertaking’s due diligence and materiality assessment process, ensuring that material impacts, risks, and opportunities are adequately identified and reported. Official
Reference: Commission Delegated Regulation (EU) 2023/2772, ESRS 1, Section 3.1 – Defines the two main groups of stakeholders.
ESRS 2 SBM-2 (Interests and Views of Stakeholders) – Covers how affected stakeholders’ views inform an undertaking’s strategy.
EFRAG Guidance on Stakeholder Engagement and Double Materiality – Reinforces the role of affected stakeholders in sustainability assessments.
Question #16
Select all the correct steps for conducting a double materiality assessment based on the ESRS.
- A . Compare the identified material topics with the list in ESRS 1 Application Requirement 16.
- B . Entity-specific disclosures must be developed only for impacts covered by ESRS.
- C . ESRS 2 requires the use of IRO-1 to report on the organization’s process for identifying impacts, risks, and opportunities.
- D . SBM-3 outlines disclosure requirements on the material impacts, risks, and opportunities resulting from the materiality assessment.
- E . Only financial materiality should be considered when conducting the assessment.
- F . Double materiality assessments are not required for organizations following the ESRS.
Correct Answer: A, C, D
A, C, D
Explanation:
The double materiality assessment involves identifying sustainability matters that are material either from:
An impact perspective (the organization’s effects on people and the environment).
A financial perspective (how sustainability matters affect the organization financially).
The correct steps in conducting this assessment include:
(A) Comparing identified material topics with ESRS 1 AR 16 C This ensures alignment with predefined sustainability matters in ESRS.
(C) Using ESRS 2 IRO-1 C This disclosure requirement mandates companies to report on their methodology for identifying impacts, risks, and opportunities.
(D) Following SBM-3 of ESRS 2 C This section provides requirements for disclosing the material impacts, risks, and opportunities identified through the materiality assessment.
Why the other options are incorrect:
(B) False: Entity-specific disclosures must cover all material sustainability topics, even those not explicitly covered in ESRS.
(E) False: Both financial and impact materiality must be considered (double materiality), not just financial materiality.
(F) False: Double materiality assessments are mandatory for all organizations reporting under ESRS.
Reference: Commission Delegated Regulation (EU) 2023/2772, Section 3.3 on Double Materiality
EFRAG Compilation on Double Materiality Assessments, providing step-by-step guidance on ESRS compliance
A, C, D
Explanation:
The double materiality assessment involves identifying sustainability matters that are material either from:
An impact perspective (the organization’s effects on people and the environment).
A financial perspective (how sustainability matters affect the organization financially).
The correct steps in conducting this assessment include:
(A) Comparing identified material topics with ESRS 1 AR 16 C This ensures alignment with predefined sustainability matters in ESRS.
(C) Using ESRS 2 IRO-1 C This disclosure requirement mandates companies to report on their methodology for identifying impacts, risks, and opportunities.
(D) Following SBM-3 of ESRS 2 C This section provides requirements for disclosing the material impacts, risks, and opportunities identified through the materiality assessment.
Why the other options are incorrect:
(B) False: Entity-specific disclosures must cover all material sustainability topics, even those not explicitly covered in ESRS.
(E) False: Both financial and impact materiality must be considered (double materiality), not just financial materiality.
(F) False: Double materiality assessments are mandatory for all organizations reporting under ESRS.
Reference: Commission Delegated Regulation (EU) 2023/2772, Section 3.3 on Double Materiality
EFRAG Compilation on Double Materiality Assessments, providing step-by-step guidance on ESRS compliance
Question #17
Which of the following statements about the CSRD reporting mandate are correct? Select all that apply.
- A . The CSRD requires a double materiality assessment to be conducted for sustainability reporting.
- B . The organizations reporting under the CSRD need to follow a specific reporting format.
- C . The CSRD only applies to companies headquartered in the EU.
- D . The CSRD is tied to other EU legislation which companies subject to the CSRD may need to comply with.
- E . The organizations reporting under the CSRD do not need to report value chain information.
- F . The CSRD mandate does not require external assurance for sustainability reporting.
Correct Answer: A, B, D
A, B, D
Explanation:
The Corporate Sustainability Reporting Directive (CSRD) includes specific reporting mandates that organizations must comply with.
Below is an evaluation of each option:
A, B, D
Explanation:
The Corporate Sustainability Reporting Directive (CSRD) includes specific reporting mandates that organizations must comply with.
Below is an evaluation of each option:
Question #18
Indicate whether the following statement is true or false.
The goal of assurance is to confirm the reliability of information related to an organization’s sustainability risks, how these risks are managed and reduced, and the organization’s performance data.
- A . True
- B . False
Correct Answer: A
A
Explanation:
The goal of assurance in sustainability reporting is to confirm the reliability of sustainability disclosures, ensuring that reported information on risks, management strategies, and performance data is accurate and verifiable.
Key aspects of sustainability assurance include:
Evaluating the credibility of reported sustainability risks and how organizations manage them.
Assessing compliance with CSRD and ESRS assurance requirements.
Ensuring data integrity and alignment with financial and sustainability disclosures. Enhancing investor confidence in an organization’s sustainability reporting.
Official
Reference: CSRD and ESRS Assurance Requirements (Commission Delegated Regulation (EU) 2023/2772, Section 5.2) – Specifies assurance requirements for sustainability reporting.
EU Sustainable Finance Platform Report (2025) – Confirms assurance processes are necessary to enhance trust in sustainability data.
A
Explanation:
The goal of assurance in sustainability reporting is to confirm the reliability of sustainability disclosures, ensuring that reported information on risks, management strategies, and performance data is accurate and verifiable.
Key aspects of sustainability assurance include:
Evaluating the credibility of reported sustainability risks and how organizations manage them.
Assessing compliance with CSRD and ESRS assurance requirements.
Ensuring data integrity and alignment with financial and sustainability disclosures. Enhancing investor confidence in an organization’s sustainability reporting.
Official
Reference: CSRD and ESRS Assurance Requirements (Commission Delegated Regulation (EU) 2023/2772, Section 5.2) – Specifies assurance requirements for sustainability reporting.
EU Sustainable Finance Platform Report (2025) – Confirms assurance processes are necessary to enhance trust in sustainability data.
Question #19
Indicate whether the following statement is true or false.
Policymakers and regulators worldwide are increasingly mandating limited assurance for sustainability reporting in Europe and mandatory assurance in all Asian and African countries.
- A . True
- B . False
Correct Answer: B
B
Explanation:
The statement that "Policymakers and regulators worldwide are increasingly mandating limited assurance for sustainability reporting in Europe and mandatory assurance in all Asian and African countries" is false for the following reasons:
Limited Assurance in Europe
Under the Corporate Sustainability Reporting Directive (CSRD), the European Union (EU) is progressively implementing mandatory assurance for sustainability reporting, but it is starting with limited assurance before transitioning to reasonable assurance by 2028.
The Committee of European Auditing Oversight Bodies (CEAOB) has issued non-binding guidelines on limited assurance to harmonize the approach across EU member states. No Universal Mandatory Assurance in Asia and Africa
Sustainability assurance varies by country in Asia and Africa, with some jurisdictions adopting voluntary or limited requirements rather than mandatory assurance.
The EU approach is influencing global discussions, but there is no blanket requirement for full mandatory assurance across all Asian and African countries.
While certain Asian countries (e.g., Japan, Singapore, China, and India) are enhancing their sustainability reporting frameworks, assurance requirements remain diverse and sector-dependent. In Africa, sustainability reporting is growing, especially in South Africa under King IV principles, but assurance is not uniformly mandatory across the continent.
Conclusion:
Limited assurance is currently being phased in across the EU, but not yet fully mandated at the reasonable assurance level.
There is no global requirement for mandatory assurance across all Asian and African countries.
Therefore, the statement is false.
Official Commission Delegated Regulation (EU) 2023/2772, various EFRAG guidance documents, and
CSRD-related references:
EU CSRD Recital 60: Roadmap for assurance from limited to reasonable.
CEAOB Limited Assurance Guidelines (September 2024).
B
Explanation:
The statement that "Policymakers and regulators worldwide are increasingly mandating limited assurance for sustainability reporting in Europe and mandatory assurance in all Asian and African countries" is false for the following reasons:
Limited Assurance in Europe
Under the Corporate Sustainability Reporting Directive (CSRD), the European Union (EU) is progressively implementing mandatory assurance for sustainability reporting, but it is starting with limited assurance before transitioning to reasonable assurance by 2028.
The Committee of European Auditing Oversight Bodies (CEAOB) has issued non-binding guidelines on limited assurance to harmonize the approach across EU member states. No Universal Mandatory Assurance in Asia and Africa
Sustainability assurance varies by country in Asia and Africa, with some jurisdictions adopting voluntary or limited requirements rather than mandatory assurance.
The EU approach is influencing global discussions, but there is no blanket requirement for full mandatory assurance across all Asian and African countries.
While certain Asian countries (e.g., Japan, Singapore, China, and India) are enhancing their sustainability reporting frameworks, assurance requirements remain diverse and sector-dependent. In Africa, sustainability reporting is growing, especially in South Africa under King IV principles, but assurance is not uniformly mandatory across the continent.
Conclusion:
Limited assurance is currently being phased in across the EU, but not yet fully mandated at the reasonable assurance level.
There is no global requirement for mandatory assurance across all Asian and African countries.
Therefore, the statement is false.
Official Commission Delegated Regulation (EU) 2023/2772, various EFRAG guidance documents, and
CSRD-related references:
EU CSRD Recital 60: Roadmap for assurance from limited to reasonable.
CEAOB Limited Assurance Guidelines (September 2024).
Question #20
Why should organizations consider reporting on sustainability? Select all options that apply.
- A . Reporting demonstrates transparency and accountability by disclosing environmental, social, and economic impacts.
- B . Stakeholders increasingly expect organizations to report on their sustainability performance.
- C . Reporting guarantees immediate financial gains for the organization.
- D . Demonstrating sustainability performance can enhance brand value and provide a competitive advantage.
Correct Answer: A, B, D
A, B, D
Explanation:
Organizations should report on sustainability for several reasons, including transparency, stakeholder expectations, and competitive advantage.
Below is the evaluation of each option:
A, B, D
Explanation:
Organizations should report on sustainability for several reasons, including transparency, stakeholder expectations, and competitive advantage.
Below is the evaluation of each option: