At ValidExamDumps, we consistently monitor updates to the GRI ESRS-Professional exam questions by GRI. Whenever our team identifies changes in the exam questions,exam objectives, exam focus areas or in exam requirements, We immediately update our exam questions for both PDF and online practice exams. This commitment ensures our customers always have access to the most current and accurate questions. By preparing with these actual questions, our customers can successfully pass the GRI ESRS Professional Certification Exam exam on their first attempt without needing additional materials or study guides.
Other certification materials providers often include outdated or removed questions by GRI in their GRI ESRS-Professional exam. These outdated questions lead to customers failing their GRI ESRS Professional Certification Exam exam. In contrast, we ensure our questions bank includes only precise and up-to-date questions, guaranteeing their presence in your actual exam. Our main priority is your success in the GRI ESRS-Professional exam, not profiting from selling obsolete exam questions in PDF or Online Practice Test.
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.
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).
Which of the following elements is recommended for inclusion in the sustainability statement under ESRS 2, based on Appendix F of ESRS 1?
Under ESRS 2 (Appendix F of ESRS 1), sustainability statements must follow a structured disclosure approach. The appendix provides guidance on the recommended format and elements to be included in the sustainability statement to ensure consistency, comparability, and transparency.
Key Requirements for ESRS 2 Sustainability Statement
(C) A list of Disclosure Requirements that have been complied with:
Organizations must provide a clear list of all ESRS disclosure requirements that they have reported on. This ensures that stakeholders can assess whether the company has complied with its materiality-based reporting obligations.
The list must include page numbers or references to the exact location of disclosures within the report.
Incorrect Options
(A) A specific structure prescribed by the ESRS:
While ESRS 1 provides a recommended structure, it is not mandatory. Instead, companies are given flexibility to adapt the format to their reporting needs.
(B) Only sector-specific Disclosure Requirements:
The sustainability statement should cover both general ESRS disclosures and sector-specific disclosures, not just sector-specific ones.
(D) A table summarizing financial performance:
Financial performance is not a core requirement of the sustainability statement. Instead, ESRS focuses on sustainability-related disclosures that impact financial performance but does not mandate a direct financial summary within the sustainability statement.
Official Reference:
Commission Delegated Regulation (EU) 2023/2772, ESRS 2 (Appendix F of ESRS 1) -- Outlines the format and elements of the sustainability statement.
EFRAG Compilation Explanations (January -- November 2024) -- Provides insights into structuring sustainability statements under ESRS.
Thus, the correct answer is C. A list of Disclosure Requirements that have been complied with.
Which of the following statements about the EU's Corporate Sustainability Reporting Directive (CSRD) and its predecessor, the Non-Financial Reporting Directive (NFRD), are correct? Select all options that apply.
The Corporate Sustainability Reporting Directive (CSRD) replaced the Non-Financial Reporting Directive (NFRD) to address its limitations in scope and reporting requirements. Below are the explanations for each option:
A . False -- The NFRD did not require all companies in the EU to include a non-financial statement. Instead, it applied only to large public-interest entities with 500 or more employees.
B . True -- The NFRD applied to large public-interest entities, including listed companies, banks, and insurance firms with more than 500 employees.
C . False -- The NFRD did not mandate external assurance for sustainability information. The CSRD introduced mandatory assurance at the EU level.
D . False -- The CSRD did not replace the NFRD; rather, it expanded and strengthened reporting requirements. The NFRD was replaced by the CSRD, but not the other way around.
E . True -- The CSRD was introduced to improve the scope and depth of sustainability reporting compared to the NFRD. It expanded the number of entities required to report, standardized disclosures via ESRS, and introduced third-party assurance requirements.
Key Differences Between CSRD and NFRD
Feature
NFRD (Old Directive)
CSRD (New Directive)
Scope
Large public-interest entities (500+ employees)
All large companies + listed SMEs
Assurance
Not required
Mandatory external assurance
Disclosure Requirements
Limited sustainability disclosures
Comprehensive ESRS-based reporting
Reporting Standards
No standardized framework
ESRS-based mandatory framework
Application Date
In force since 2018
Applies from 2024 onwards
Official Reference:
CSRD Directive (EU) 2022/2464 -- Assurance & Reporting Provisions.
ESRS Compilation Explanations January - November 2024.
How do the ESRS define stakeholders?
According to the European Sustainability Reporting Standards (ESRS) under the Commission Delegated Regulation (EU) 2023/2772, stakeholders are defined as individuals or groups who can affect or be affected by the undertaking. The ESRS distinguishes between two main groups of stakeholders:
Affected stakeholders: These are individuals or groups whose interests are affected or could be affected -- positively or negatively -- by the undertaking's activities and its direct and indirect business relationships across its value chain.
Users of sustainability statements: These include primary users of general-purpose financial reporting (e.g., existing and potential investors, lenders, and other creditors such as asset managers, credit institutions, and insurance undertakings) and other users, including the undertaking's business partners, trade unions, social partners, civil society and non-governmental organizations, governments, analysts, and academics.
Furthermore, engagement with affected stakeholders is a crucial aspect of the undertaking's ongoing due diligence process and sustainability materiality assessment. This involves identifying and assessing actual and potential negative impacts to inform the materiality assessment process for sustainability reporting.
Official Reference:
Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU on sustainability reporting standards.
ESRS 1: General Requirements, Section 3.1 (Stakeholders and their relevance to the materiality assessment process).
What must organizations disclose under the ESRS regarding their material impacts, risks, and opportunities? Select all that apply.
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 -- Covers disclosure requirements for identifying and assessing material impacts, risks, and opportunities.
EFRAG Compilation Explanations (January -- November 2024) -- Details about ESRS 1 and ESRS 2 disclosure requirements on materiality.
