Discuss GRI ESRS-Professional Exam Topic 2 Question 5

What disclosures must be included in the sustainability statement? Select all that apply.

AGeneral Disclosure Requirements from ESRS 2

BEnvironmental objectives under the EU Taxonomy Regulation

CFinancial performance metrics from IFRS reports

DGovernance-related information determined by the materiality assessment

Suggested Answer: A, B, D

The sustainability statement under ESRS is structured according to ESRS 1 and ESRS 2, outlining specific disclosure requirements. The required disclosures include:

General Disclosure Requirements from ESRS 2

ESRS 2 outlines general disclosure requirements, including governance, strategy, and impact, risk, and opportunity management (IROs). These disclosures are mandatory for all undertakings, providing the foundation of the sustainability statement.

(A) is correct

Environmental Objectives under the EU Taxonomy Regulation

Companies must disclose their alignment with the EU Taxonomy Regulation, particularly under Article 8 of Regulation (EU) 2020/852, which includes financial and non-financial companies' obligations regarding taxonomy-aligned activities.

(B) is correct

Financial Performance Metrics from IFRS Reports

Financial metrics from IFRS are NOT a required disclosure under ESRS. The sustainability statement focuses on non-financial reporting, while financial performance remains under IFRS standards in financial statements.

Governance-Related Information Determined by the Materiality Assessment

Governance disclosures (ESRS G1 Business Conduct) include transparency about policies, risk management, and ethical business practices. The materiality assessment determines the necessary governance disclosures based on entity-specific risks and opportunities.

(D) is correct

Conclusion:

The sustainability statement must include general disclosure requirements (A), environmental objectives under the EU Taxonomy (B), and governance-related information based on materiality (D). Financial performance metrics from IFRS reports (C) are not required.

Official Reference:

Commission Delegated Regulation (EU) 2023/2772

Compilation Explanations January - July 2024

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30 comments · newest first

Louvenia 10 months ago

C seems off, it’s not really about sustainability, right?

Blythe 11 months ago

Totally agree with A and B, they’re key!

Lilli 11 months ago

Wait, are we sure about D? Sounds a bit vague.

Lashonda 11 months ago

I think C is relevant too, but not essential.

Wayne 11 months ago

Definitely A and B are must-haves!

Mila 12 months ago

Governance-related information from the materiality assessment sounds crucial, so I feel confident about selecting option D.

Vallie 12 months ago

I don't recall financial performance metrics being part of the sustainability statement, so I might lean towards excluding option C.

Lavonna 12 months ago

I'm a bit unsure about the EU Taxonomy Regulation, but I think environmental objectives are important, so maybe option B is also necessary?

Veronika 1 year ago

I remember we discussed the General Disclosure Requirements from ESRS 2 in class, so I think option A is definitely one we need to include.

Leslie 1 year ago

Good point, Daniela. I think A, B, and D are the safest bets here. The sustainability statement should cover the general disclosure requirements, environmental objectives, and governance-related information.

Daniela 1 year ago

I'm a bit unsure about C - does the sustainability statement need to include financial performance metrics from IFRS reports? That doesn't seem directly related to the sustainability disclosures.

Apolonia 1 year ago

Okay, let's see. The key is to focus on the sustainability statement, so I'm thinking A, B, and D are the correct choices here.

Amber 1 year ago

This question seems straightforward, but I want to make sure I understand the requirements fully before selecting my answers.

Hector 2 years ago

Oh, this is easy! A and D are the ones you need. The other two are just trying to confuse you. As my old professor used to say, 'Keep it simple, keep it sustainable!'

Galen 2 years ago

I think B is important too, environmental objectives are becoming increasingly relevant.

Vanna 2 years ago

Hmm, I think this is a trick question. The sustainability statement is all about the environmental and social stuff, not the financial side. A and D are the right answers for sure, but B and C are completely irrelevant.

Stephane 1 year ago

↳ replying to Vanna

It's important to focus on the right disclosures to accurately reflect the company's sustainability efforts.

Xuan 2 years ago

↳ replying to Vanna

Yeah, B and C don't really fit in with the environmental and social focus of the statement.

Cristy 2 years ago

↳ replying to Vanna

I agree, A and D are the key disclosures for the sustainability statement.

Jules 2 years ago

Yep, A and D are definitely required. I wouldn't include the financial stuff from IFRS, that's more for the financial statements. And the EU Taxonomy Regulation is a whole different thing, so B is a no-go too.

Mirta 2 years ago

↳ replying to Jules

Yeah, I agree. A and D are the ones that should be included in the sustainability statement.

Tandra 2 years ago

↳ replying to Jules

D) Governance-related information determined by the materiality assessment

Wade 2 years ago

↳ replying to Jules

A) General Disclosure Requirements from ESRS 2

Alishia 2 years ago

I believe C should also be included, financial performance metrics are crucial.

Lyla 2 years ago

I agree with Ryan, A and D are important disclosures.

Yuonne 2 years ago

I'm pretty sure the sustainability statement needs to include the general disclosure requirements from ESRS 2 and the governance-related information determined by the materiality assessment. The financial performance metrics from IFRS reports seem a bit out of place here.

Arminda 2 years ago

↳ replying to Yuonne

Yeah, the financial performance metrics from IFRS reports don't really fit in with the sustainability statement.

Ronnie 2 years ago

↳ replying to Yuonne

I agree, and it should also have the governance-related information determined by the materiality assessment.

Belen 2 years ago

↳ replying to Yuonne

I think you're right, the sustainability statement should definitely include the general disclosure requirements from ESRS 2.

Ryan 2 years ago

I think A and D should be included.

GRI ESRS-Professional Exam - Topic 2 Question 5 Discussion