SASB FSA LEVEL I - ADDITIONAL
CONCEPTS EXAM QUESTIONS AND
ANSWERS
What similarities exist between the IFRS Management Commentary and the US SEC's
Management Discussion and Analysis (MD&A)? - Answer- (1) Both require companies
to generate a narrative that reflects management's views and provides the necessary
context for interpreting companies' future performance.
(2) As a key source of non-financial information, both provide a natural location to
disclose sustainability information that is material to the operating performance and/or
financial position of the reporting entity.
Who are information producers? - Answer- Reporters
Disclosure Platforms and Software Providers
Auditors
Who are information users? - Answer- Data Providers
Analytics Platforms
End Users
Regulators
What role do frameworks and standards play in the sustainability disclosure value
chain? - Answer- Frameworks and standards underpin all information - supporting both
information providers and information users.
What are the three types of organizations that significantly influence the supply and
demand of quality sustainability data for capital markets? - Answer- (1) organizations
that issue sustainability disclosure guidance
(2) organizations that aggregate sustainability data
(3) organizations that create sustainability ratings and/or analytics
What are the different ways in which frameworks and standards can be understood and
categorized? - Answer- Scope of information
Type of guidance
, Primary audience
Scope of materiality
Industry agnostic or industry-specific
Time horizon
Governance model
SASB Standards: Sectors and Industries - Answer- Sectors and industries are based on
SASB's Sustainable Industry Classification System (SICS)
SASB Standards: Sustainability Dimensions - Answer- Sustainability dimensions are
broad sustainability themes, including:
Environment
Social Capital
Human Capital
Business Model & Innovation
Leadership & Governance
SASB Standards: General Issue Categories - Answer- General issue categories (GIC)
are industry-agnostic and cross-cutting themes that allow comparisons across
sectors/industries
SASB Standards: Disclosure Topics - Answer- Disclosure topics are the industry-
specific and tailored versions of the GICs that are reasonably likely to have financially
material impacts on companies participating in an industry.
SASB Standards: Metrics - Answer- Accounting metrics are quantitative and qualitative
indicators created to measure performance on each disclosure topic. Technical
protocols exist for each metric.
3 Purposes of the Conceptual Framework - Answer- (1) It guides board members and
staff who oversee and implement standard-setting activities
(2) It helps stakeholders better understand SASB's approach to standard-setting
(3) It helps to improve board member and staff engagement and consultation with
stakeholders by providing a common language for communication.
CONCEPTS EXAM QUESTIONS AND
ANSWERS
What similarities exist between the IFRS Management Commentary and the US SEC's
Management Discussion and Analysis (MD&A)? - Answer- (1) Both require companies
to generate a narrative that reflects management's views and provides the necessary
context for interpreting companies' future performance.
(2) As a key source of non-financial information, both provide a natural location to
disclose sustainability information that is material to the operating performance and/or
financial position of the reporting entity.
Who are information producers? - Answer- Reporters
Disclosure Platforms and Software Providers
Auditors
Who are information users? - Answer- Data Providers
Analytics Platforms
End Users
Regulators
What role do frameworks and standards play in the sustainability disclosure value
chain? - Answer- Frameworks and standards underpin all information - supporting both
information providers and information users.
What are the three types of organizations that significantly influence the supply and
demand of quality sustainability data for capital markets? - Answer- (1) organizations
that issue sustainability disclosure guidance
(2) organizations that aggregate sustainability data
(3) organizations that create sustainability ratings and/or analytics
What are the different ways in which frameworks and standards can be understood and
categorized? - Answer- Scope of information
Type of guidance
, Primary audience
Scope of materiality
Industry agnostic or industry-specific
Time horizon
Governance model
SASB Standards: Sectors and Industries - Answer- Sectors and industries are based on
SASB's Sustainable Industry Classification System (SICS)
SASB Standards: Sustainability Dimensions - Answer- Sustainability dimensions are
broad sustainability themes, including:
Environment
Social Capital
Human Capital
Business Model & Innovation
Leadership & Governance
SASB Standards: General Issue Categories - Answer- General issue categories (GIC)
are industry-agnostic and cross-cutting themes that allow comparisons across
sectors/industries
SASB Standards: Disclosure Topics - Answer- Disclosure topics are the industry-
specific and tailored versions of the GICs that are reasonably likely to have financially
material impacts on companies participating in an industry.
SASB Standards: Metrics - Answer- Accounting metrics are quantitative and qualitative
indicators created to measure performance on each disclosure topic. Technical
protocols exist for each metric.
3 Purposes of the Conceptual Framework - Answer- (1) It guides board members and
staff who oversee and implement standard-setting activities
(2) It helps stakeholders better understand SASB's approach to standard-setting
(3) It helps to improve board member and staff engagement and consultation with
stakeholders by providing a common language for communication.
