Standards & Regulators 101

Question 1

What does the TCFD acronym stand for? Who created it?

Answer 1

Task Force for Climate-Related Financial Disclosures. Created by the Financial Stability Board (FSB).

Question 2

What does REDD+ acronym stand for?

Answer 2

Reducing Emissions from Deforestation and Forest Degradation in Developing Countries.

Question 3

What does SDG Stand for?

Answer 3

Sustainable Development Goals (by the UN)

Question 4

What does IFRS stand for?

Answer 4

International Financial Reporting Standards (IFRS) Foundation. Full name includes “Foundation”

Question 5

What does ISSB stand for and what is it a part of?

Answer 5

International Sustainability Standards Board, part of the IFRS

Question 6

What does SASB stand for and what is it a part of now?

Answer 6

Sustainability Accounting Standards Board, now part of the IFRS

Question 7

How many industry standards for sustainability accounting does SASB have?

Answer 7

77 (as of Jan 2024)

Question 8

What does EFRAG stand for and who are they in a nutshell?

Answer 8

European Financial Reporting Advisory Group. Provide technical expertise and advice on accounting matters to the European Commission to enhance the quality of financial reporting within the European Union.

Question 9

What does ESRS stand for and who created it?

Answer 9

European Sustainability Reporting Standard by EFRAG.

Question 10

According to OPF, what are the big 3 drivers of Sustainability Reporting?

Answer 10

1) Stakeholders Expect It (Investors, Customers, Employees)
2) Regulations
3) Competitive Advantage (Access to Capital or Revenue gains from Scope 3 customer sales growth)

Question 11

How many companies are affected by the EU CSRD regulations?

Answer 11

50,000+

Question 12

In 2022, what % of the Global 250 companies produced a Sustainability/ESG report?

Answer 12

96%

Question 13

What is the basic purpose of the IFRS S1 & S2 in their own words?

Answer 13

Standards to follow in providing MATERIAL INFORMATION about SUSTAINABILITY-RELATED RISKS & OPPORTUNITIES - with financial statements - to meet INVESTORS’ information needs.

Question 14

IFRS S1 uses the TCFD structure for 4 “Core Content” areas of information that a company must disclose. What are the 4 areas?

Answer 14

1. Governance
2. Strategy
3. Risk Management
4. Metrics & Targets

Question 15

Per IFRS S1, where does a company look first to identify material risks and opportunities? Then where else?

Answer 15

SASB Standards. After that:
- CDSB Framework Application Guidance
- Industry Practices
- Other ‘materials’ of investor-focused standard setters
- GRI Standards
- ESRS (European Sustainability Reporting Standards)