GRI ESRS-Professional Dumps Questions Answers

ACSRD assurance engagementprimarily focuses onensuring compliance with the ESRSand theproper digital tagging of sustainability information. The elements included in the assurance scope are:

B. Compliance of the reporting with the relevant ESRS✅

Assurance engagements under the CSRDverify whether sustainability reports comply with the European Sustainability Reporting Standards (ESRS).

Theassurance provider reviews disclosuresto ensure alignment withESRS requirements, includingdouble materiality assessments and mandatory data points​.

C. Compliance with the requirement to tag the sustainability reporting✅

CSRD requires that sustainability information bedigitally taggedusing theEuropean Single Electronic Format (ESEF)to ensuremachine readability and comparability​.

Assurance providers verify the correct application of this tagging requirement, ensuring consistency withXBRL (eXtensible Business Reporting Language) standards.

ACSRD assurance engagement does not cover financial statements.

Financial audits are conducted separately, under theInternational Financial Reporting Standards (IFRS) or local GAAP requirements.

Sustainability assurance only applies tonon-financial sustainability disclosuresunderESRS​.

Why is A. Verification of the company's financial statements❌incorrect?Conclusion:Thescope of a CSRD assurance engagementincludes:✅Compliance with ESRS(B)✅Verification of digital tagging(C)❌Not financial statement audits(A)

Official Commission Delegated Regulation (EU) 2023/2772, various EFRAG guidance documents, and CSRD-related references:

Commission Delegated Regulation (EU) 2023/2772, ESRS assurance scope​.

EU Sustainable Finance Platform Report (2025): Confirmation ofdigital tagging as part of CSRD assurance​.

Step A in thedouble materiality assessment processis theinitial stagewhere an organization establishes a foundational understanding of itsbusiness context, activities, and stakeholder relationships. This step is critical in identifying how the entity interacts with environmental, social, and governance (ESG) matters and lays the groundwork for further impact and financial materiality assessments.

Thedouble materiality conceptin the ESRS framework requires organizations to evaluate both:

Impact materiality– How an organization’s activities impact people and the environment.

Financial materiality– How sustainability matters influence the organization's financial position, performance, and cash flows.

Identifying the business environment:Understanding industry-specific sustainability challenges, regulatory requirements, and stakeholder expectations.

Recognizing affected stakeholders:Engaging internal and external stakeholders to determine which sustainability matters are relevant.

Defining dependencies and risks:Evaluating the organization’s dependencies on natural, social, and human capital, and how these can influence business outcomes.

Understanding sector and geographical relevance:Assessing which sustainability issues are most significant based on where the company operates.

Key Aspects of Step A in Double Materiality Assessment:Step A does not yet involve selecting specific disclosure requirements (Step B) or conducting a financial materiality assessment (Step C). Instead, it provides thecontextual frameworknecessary for subsequent steps in the materiality process​.

Commission Delegated Regulation (EU) 2023/2772, ESRS 1, Section 3.1– Defines stakeholders' role in materiality assessment​.

EFRAG Compilation Explanations January - November 2024– Provides guidance on applying double materiality and the importance of Step A​.

EFRAG IG 1 Materiality Assessment, Chapter 2.2– Outlines Step A as the process of understanding business activities, stakeholders, and sustainability context​.

Official References:Thus, the correct answer isC. Understand the organization's context, activities, and stakeholders.

Entity-specific disclosures are required if a material sustainability matter is not covered or sufficiently detailed in the ESRS. According toESRS 1, paragraph 11, if an undertaking identifies an impact, risk, or opportunity that isnot adequately coveredby an ESRS but ismaterial due to itsspecific facts and circumstances, it must provideadditional entity-specific disclosures. This ensures that users of sustainability reports receive relevant and complete information​.

ESRS 1, paragraph 11:

Requires entity-specific disclosures when material sustainability matters are missing or not sufficiently covered in the ESRS.

ESRS 1, paragraph 30:

Mandates that companiesmustdisclose additional entity-specific disclosures if material matters are not covered with sufficient granularity in ESRS​.

ESRS 1, Appendix A (Application Requirements):

Provides further guidance on entity-specific disclosures, ensuring consistency and comparability while allowing companies to disclose material matters not addressed by ESRS​.

ESRS 2, Disclosure Requirements (SBM-3, IRO-1, GOV-1 to GOV-5):

Outlines theminimum disclosure requirementsthat apply when companies make entity-specific disclosures related to governance, strategy, impacts, risks, and opportunity management​.

Key Provisions from ESRS:Thus, if a sustainability matter is deemedmaterialand is not sufficiently addressed by ESRS,entity-specific disclosures are mandatory.

Official References:

Commission Delegated Regulation (EU) 2023/2772, ESRS 1, Paragraphs 11 and 30​.

ESRS Implementation Q&A Platform – Compilation of Explanations January – November 2024​.