CFA Institute Sustainable Investing Certificate (formerly Certificate in ESG Investing) · International · CFA Institute
Original practice questions written to the published syllabus · not past papersHow companies report sustainability information and how investors use it: materiality, GRI, ISSB IFRS S1 and S2, the EU CSRD and ESRS, TCFD and TNFD recommendations, national regimes such as India's BRSR, assurance and greenwashing. The versions in force change often; the manual names the version it describes.
In the exams: GARP SCR; CFA Institute Sustainable Investing Certificate; GRI certified training; SEA/SEP (GBCI); corporate sustainability roles
CFA Institute Sustainable Investing Certificate and IFRS Fundamentals of Sustainability Accounting
Materiality concepts, SASB industry standards and IFRS S1, ESG data and ratings divergence, integration of ESG into analysis, regulatory landscape (CSRD, SFDR, national regimes) and assurance.
How our questions for CFA Institute Sustainable Investing Certificate spread across the units of Sustainability Reporting & ESG Disclosure. Difficulty: 12 easy, 28 medium, 15 hard.
| ESG ratings and data providers | 9 | |
| EU CSRD and ESRS | 8 | |
| ISSB: IFRS S1 general requirements and IFRS S2 climate | 7 | |
| TCFD pillars: governance, strategy, risk management, metrics and targets | 7 | |
| Purpose and history of sustainability reporting | 6 | |
| Single and double materiality | 5 | |
| Assurance of sustainability information | 5 | |
| Greenwashing and green claims regulation | 5 | |
| National mandatory sustainability-reporting regimes | 3 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
At which event was the creation of the International Sustainability Standards Board announced?
C. COP26 in Glasgow, November 2021
The IFRS Foundation announced the ISSB at COP26 in November 2021, together with the consolidation of CDSB and the Value Reporting Foundation. The other events predate it.
Further reading: IFRS Foundation 2021
Which bodies were consolidated into the IFRS Foundation to support the ISSB?
B. The Climate Disclosure Standards Board and the Value Reporting Foundation
CDSB and the Value Reporting Foundation (itself a merger of SASB and the IIRC) were consolidated into the IFRS Foundation in 2022. GRI, the Global Compact, CDP, SBTi, TNFD and NGFS remain separate.
Further reading: IFRS Foundation
Which EU directive required large public-interest entities with more than 500 employees to publish non-financial statements before the CSRD?
B. The Non-Financial Reporting Directive (2014/95/EU)
The NFRD (2014/95/EU) applied from financial years starting in 2017 and was replaced by the CSRD. The other directives concern waste, industrial emissions and habitats.
Further reading: Directive 2014/95/EU
Under the ESRS, when must a sustainability matter be reported?
A. When it is material from the impact perspective, the financial perspective, or both
Double materiality means a matter is reported if it meets either the impact or the financial materiality test. Requiring both, investor requests or marketing presence is not the rule.
Further reading: CSRD and ESRS set 1 (2023)
What level of assurance does the CSRD initially require on sustainability reports?
B. Limited assurance
The CSRD requires limited assurance, with the option of moving to reasonable assurance later. Board self-review is not assurance.
Further reading: Directive (EU) 2022/2464
From which date did Australia make climate-related financial disclosure mandatory for its largest entities?
C. Financial years beginning 1 January 2025
Australia's regime, based on the AASB S2 standard aligned with IFRS S2, began with large entities for years starting 1 January 2025, phasing to smaller entities.
Further reading: Corporations Act amendments 2024 (Australia)
A rating combines pillar scores E = 60, S = 70 and G = 80 with weights 0.5, 0.3 and 0.2. What is the overall score?
B. 67
Score = 0.5×60 + 0.3×70 + 0.2×80 = 30 + 21 + 16 = 67. 70 is the equal-weight average; 210 sums without weights; 60 uses E alone.
How is a limited assurance conclusion typically worded?
C. Nothing has come to our attention that causes us to believe the information is materially misstated
Limited assurance gives a negative-form conclusion after fewer procedures; reasonable assurance gives a positive opinion. Assurance never guarantees complete accuracy, and a disclaimer is not assurance.
Further reading: ISAE 3000 (Revised)
Which IAASB standard, issued in November 2024, applies to sustainability assurance engagements under any framework?
B. ISSA 5000
ISSA 5000 General Requirements for Sustainability Assurance Engagements is profession-agnostic and framework-neutral, effective for periods beginning on or after 15 December 2026. ISAE 3402 covers service organisation controls; ISA 700 audit reports; ISO 14065 verification bodies.
Further reading: IAASB 2024
Which UK body published a Green Claims Code in 2021 to guide businesses on environmental claims?
C. The Competition and Markets Authority
The CMA's Green Claims Code sets six principles: claims must be truthful and accurate, clear and unambiguous, not omit important information, make fair comparisons, consider the full life cycle and be substantiated.
Further reading: CMA Green Claims Code 2021
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