ESRS-Professional Practice Questions

Thedouble materiality assessmentinvolves 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).

Thecorrect stepsin conducting this assessment include:

(A) Comparing identified material topics with ESRS 1 AR 16– This ensures alignment withpredefined sustainability mattersin ESRS​.

(C) Using ESRS 2 IRO-1– This disclosure requirement mandates companies toreport on their methodology for identifying impacts, risks, and opportunities​.

(D) Following SBM-3 of ESRS 2– This section provides requirements fordisclosing the material impacts, risks, and opportunities identified through the materiality assessment​.

(B) False:Entity-specific disclosures must coverall 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 mandatoryfor all organizations reporting under ESRS​.

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​

Why the other options are incorrect:References:==============