Level 4 ESG Reporting

Question 1

Who are the stakeholders to communicate to?

Answer 1

Corporate Investors

Country

Clients

Suppliers

Regulators

Sites

Employees

Local communities

Question 2

Corporate reporting in the long run vs the short run. When is Financial or non financial info mort important

Answer 2

In the long run, the information needs of interest groups are aligned and based on non financial information, because it is a better predictor of future success. Hence, financial info is important in the short run

Question 3

Name the non financial reporting initiatives

Answer 3

EU- Non financial reporting initiative
EFFAS KPI
Global reporting initiative standards (GRI)
Sustainability accounting standards board(SASB)
Integrated reporting framework (IIRC)
Task force on climate related financial disclosures

Question 4

Name a key characteristic of the EU- Non financial reporting initiative

Answer 4

Compulsory for Corporates with over 500 employees

Question 5

Name a key characteristic of the EFFAS KPI

Answer 5

Partnered with the EU commission

it defines KEY performance indicators

Question 6

Name a key characteristic of the Global reporting initiative standards (GRI)

Answer 6

Materiality focus Aligned with the EU directive and IIRC Local impacts

Question 7

Name a key characteristic of the Sustainability accounting standards board(SASB)

Answer 7

Used in the US ESG indicators to include in the 10k and 20f forms

Use a materiality map

Question 8

Name a key characteristic of the Integrated reporting framework (IIRC)

Name the steps in the value creation process

Answer 8

Different focus on information Future not past Strategic and quality of governance and management

Inputs> Business Activities> Outputs> Outcomes

Question 9

Name a key characteristic of the Task force on climate related financial disclosures

What sector does it apply to

Answer 9

The taskforce will review how the financial sector can take accounts of climate related issues

Question 10

The EU Accounting directive 2003/51/EC What does it regulate

Answer 10

To the extent necessary for an understanding of the companys development, performance or position, the analysis shall include both financial and where appropriate, non financial key performance indicators relevant to their particular business. Including information relating to environmental and employee matters

Question 11

EU Directive 2014/95/EU What does it regulate

Answer 11

Companies are required to include non financial statements in their annual report from 2018 an onwards Companies are required to include information relating to at least environmental matters, social and employee related matters, respect for human rights, anti corruption, and bribery matters. Such statement should include an description of the policies, results, and risk related to those matters

Question 12

How flexible is the EU Directive 2014/95/EU

Answer 12

it gives companies significant flexibility to disclose relevant information int he way they consider it useful. Companies may use, international, European or national guidelines to produce their statements

Question 13

What should be reported in teh EU accounting directive?

Desribe the content

Answer 13

Question 14

What issues should be reported in the EU accounting standards

Name some environmental issues

name some Labour and social issues

Answer 14

Question 15

Flip card for key take aways in level 4

Answer 15