ESG Reporting and Risk Management

Questions and Answers

What is the primary focus of the 'Governance structure and composition' material topic in the GRI standards?

Disclosure of the company's environmental impact

Composition of the highest governance body and its committees (correct)

Assessment of the company's social responsibility initiatives

Evaluation of the company's financial performance

Which of the following disclosure standards is related to the 'Nomination and selection of the highest governance body' topic?

Disclosure 102-18

Disclosure 102-22

Disclosure 2-10 (correct)

Disclosure 102-25

What is the focus of Disclosure 102-23 in the GRI standards?

Composition of the highest governance body

Nominating and selecting the highest governance body

Chair of the highest governance body (correct)

Governance structure

Which of the following is NOT a topic related to the 'Governance' material topic in the GRI standards?

Environmental impact Signup and view all the answers

What is the primary focus of Disclosure 102-18 in the GRI standards?

Governance body and its committees Signup and view all the answers

Which of the following disclosure standards is related to the 'Governance structure' topic?

Disclosure 2-9 Signup and view all the answers

What is the primary role of the highest governance body in overseeing the management of impacts?

Setting purpose, values, and strategy Signup and view all the answers

Which GRI standard corresponds to the process of identifying and managing economic, environmental, and social impacts?

Disclosure 102-29 Signup and view all the answers

Who is responsible for executive-level responsibility for economic, environmental, and social topics?

The highest governance body Signup and view all the answers

What is the purpose of consulting stakeholders on economic, environmental, and social topics?

To identify and manage impacts Signup and view all the answers

Which of the following is a key aspect of the role of the highest governance body?

Overseeing the management of impacts Signup and view all the answers

What is the focus of Disclosure 102-20?

Executive-level responsibility for economic, environmental, and social topics Signup and view all the answers

Which GRI standard corresponds to the process of delegating authority for managing impacts?

Disclosure 102-19 Signup and view all the answers

What is the main objective of the World Business Council for Sustainable Development?

To promote sustainable development practices in industries Signup and view all the answers

What is the vision of the society, as described in the content?

To achieve sustainable development without compromising the ability of future generations Signup and view all the answers

What is the primary purpose of Disclosure 102-30?

To evaluate the effectiveness of risk management processes Signup and view all the answers

What is the main focus of the Equator Principles?

Risk management framework for financial institutions Signup and view all the answers

What is the goal of the members of ICMM?

To commit to net zero scope 1 and 2 greenhouse gas emissions by 2050 or sooner Signup and view all the answers

What is the mission of WRI?

To move human society to live in ways that protect Earth’s environment and its capacity to provide for the needs and aspirations of current and future generations Signup and view all the answers

What is the definition of sustainable development, according to the commission?

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs Signup and view all the answers

What is the focus of the Principles for Responsible Banking?

Ensuring that signatory banks’ strategy and practice align with the vision of the society Signup and view all the answers

Who is credited with the phrase 'A global agenda for change'?

Harlem Brundtland of Norway Signup and view all the answers

What is a primary component of the 'Statement on sustainable development strategy' disclosure in the GRI standards?

Values, principles, standards, and norms of behavior Signup and view all the answers

Which disclosure is related to the embedding of policy commitments in the GRI standards?

Disclosure 2-24 Signup and view all the answers

What is the primary focus of the 'Processes to remediate negative impacts' disclosure in the GRI standards?

Grievance mechanisms Signup and view all the answers

Which GRI standard is related to the values, principles, standards, and norms of behavior?

Disclosure 102-16 Signup and view all the answers

What is the primary purpose of the 'Statement from senior decision-maker' disclosure in the GRI standards?

To provide a statement from the senior decision-maker Signup and view all the answers

Which disclosure is related to the policy commitments in the GRI standards?

Disclosure 2-23 Signup and view all the answers

What was the title of the report that brought ESG to global attention?

Who Cares Wins: Connecting Financial Markets to a Changing World Signup and view all the answers

What are the three areas that ESG reporting addresses business risks across?

Environment, Society, and Governance Signup and view all the answers

What is the primary goal of ESG reporting?

To promote sustainable development Signup and view all the answers

What is the expected outcome of ESG reporting for financial markets?

Stronger and more resilient financial markets Signup and view all the answers

What is the role of ESG reporting in risk management?

To identify and address business risks Signup and view all the answers

What is the expected outcome of ESG reporting for stakeholders?

Awareness and mutual understanding of involved stakeholders Signup and view all the answers

Study Notes

ESG and Sustainability

ESG gained significant global attention following the publication of the report "Who Cares Wins: Connecting Financial Markets to a Changing World" in 2004.
ESG reporting is a form of risk management that addresses business risks across three areas: environment, society, and governance.

Sustainable Development

The concept of sustainable development was defined by Harlem Brundtland of Norway as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
The United Nations asked to formulate a "global agenda for change" in response to the concept of sustainable development.

Sustainability Initiatives

The World Resources Institute (WRI) aims to move human society to live in ways that protect the Earth's environment and its capacity to provide for current and future generations.
The World Business Council for Sustainable Development (WBCSD) is a global organization that promotes sustainable development.
The Equator Principles (EPs) is a risk management framework adopted by financial institutions to determine, assess, and manage environmental and social risks in projects.

Governance

Governance structure and composition are critical components of ESG reporting.
The nomination and selection of the highest governance body, including the chair, are essential aspects of governance.
The role of the highest governance body in setting purpose, values, and strategy, as well as overseeing the management of impacts, is crucial.
Effective risk management processes and delegation of authority are essential for managing economic, environmental, and social impacts.

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Description

Learn about ESG reporting, its importance in risk management, and its three key areas: environment, society, and governance.