ESG Reporting and Assurance Study Notes

What triggers ESG reporting requirements in the EU

Companies listed in the EU required to comply

What triggers ESG reporting in Cali?

Businesses operating in Cali with over 1 billion in revenue must comply with state ESG disclosures

What is the difference between limited and reasonable assurance?

limited assurance: less rigorous; auditor expresses that nothing has come to their attention to indicate misstatement

reasonable assurance: higher level of confidence based on more extensive procedures

What are Scope 1, Scope 2, and Scope 3 emissions?

Scope 1: Direct emissions (e.g., from company vehicles or facilities).

Scope 2: Indirect emissions from purchased energy (e.g., utility provider).

Scope 3: All other indirect emissions (upstream and downstream), including supply

chain and product use.

What is the challenge of limited assurance in ESG?

Few numbers, low data reliability- users may not have enough faith in reported ESG data

What types of ESG data exist

Primary data: Direct measurements from the company

Secondary data: estimates, benchmarks, or external databases