[SSA] Quizzer on Midterm Topics

These are persons or groups of persons living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by an organization’s operations.

A. Vulnerable Groups

B. Local Community

C. Sector

D. Employees and labor groups

B. Local Community

Statement I. SEC Memorandum Circular No. 4 Series of 2019 is more of “comply or explain” approach rather than mandatory.

Statement II. Comply or Explain approach means that the SEC rules are principles-based rather than rules-based.

Which of the following statements is/are false?

A. Statement I only.

B. Statement II only.

C. Statements I and II.

D. None of the statements.

D. None of the statements.

This refers to an entity or individual that can reasonably be expected to be significantly affected by the reporting organization’s activities, products and services, or whose actions can reasonably be expected to affect the ability of the organization to successfully implement its strategies and achieve its objectives

A. Stakeholders

B. Employees

C. Shareholders

D. Business Partners

A. Stakeholders

Which of the following is not an example of ESG Commitment Formers?

A. Equator Principles

B. UN Global Compact

C. Ceres Coalition

D. Sustainalytics

D. Sustainalytics

S1. Under environmental factors, we need to disclose how water is consumed, utilized, frozen, and disposed.

S2.  Stakeholders are essentially the users of the company manual.

S3. The report and its information can be compared on a month-to-month basis is a test of comparability.

A. False, True, True

B. True, True, True

C. False, False, False

D. True, False, False

E. True, True, False

C. False, False, False

This reflects the view that managing environmental and social topics is a governance issue for organizations, a proxy for the quality of their management teams, and a process to assess whether they are positioned for long-term success.

A. ESG

B. TBL

C. ESH

D. CSR

A. ESG

It is also known as “social license to operate”

A. Approved to operate.

B. Allowed to operate.

C. License to operate.

D. Social to operate.

C. License to operate

It pertains to the domain which constitutes the basis for regulating the flow of materials and energy which underlie existence as defined by the Brundtland Commission.

A. Economic Domain

B. Material Domain

C. Social Domain

D. Energy Domain

B. Material Domain

On Dec. 6, 1993, parts of the structure of the Maguila-guila tailings dam owned by Marcopper broke, flooding the Mogpog River with toxic waste. It is considered one of the worst mining disasters to hit the Philippines. 

Where in the Philippines this disaster happened?

A. Maguindanao

B. Marinduque

C. Misamis Oriental

D. Cagayan

B. Marinduque

Sustainability information includes both ________.

A. Qualitative and non-qualitative information.

B. Quantitative and non-quantitative information.

C. Financial and non-financial information.

D. Qualitative and quantitative information.

C. Financial and non-financial information.

Which of the following definitions best apply to the principle of defining report quality, Accuracy?

A. The reported information shall be sufficiently accurate and detailed for stakeholders to assess the reporting organization’s performance.

B. The reported information shall reflect positive and negative aspects of the reporting organization’s performance to enable a reasoned assessment of overall performance.

C. The reporting organization shall make information available in a manner that is understandable and accessible to stakeholders using that information.

D. The reporting organization shall gather, record, compile, analyze, and report information and processes used in the preparation of the report in a way that they can be subject to examination, and that establishes the quality and materiality of the information.

A. The reported information shall be sufficiently accurate and detailed for stakeholders to assess the reporting organization’s performance.

The reporting organization shall report on a regular schedule so that information is available in time for stakeholders to make informed decisions. This refers to the principle of defining report quality which is ___________.

A. Balance

B. Accuracy

C. Timeliness

D. Reliability

C. Timeliness

S1. Sustainability reporting is an organization’s practice of reporting in public of its significant economic environmental and/or social impacts, in accordance with globally accepted standards.

S2. Traditionally, businesses are more concerned on achieving sustainability above of its profitability.

Which of the following statements is/are true?

A. Statement I only.

B. Statement II only.

C. Statements I and II.

D. None of the statements.

B. Statement II only.

These are situation(s) where an individual is confronted with choosing between the requirements of his or her function and his or her own private interests.

A. Ethical Dilemma

B. Conflict of Interest

C. Fraudulent Reporting

D. Lack of stakeholder engagement

B. Conflict of Interest

The issue of water scarcity is generally considered to be a material issue for beverage companies like Sarsi Company.  Sarsi relies on water to produce its products, and without a consistent supply of inexpensive water, would likely face significant business challenges. Because other people rely on the same water resources, Sarsi may face pressure from stakeholder groups who object to its sourcing of water from communities in water- stressed regions. Which of the following is false regarding water scarcity as a material issue to Sarsi’s corporate and sustainability efforts?

A. The company’s sales and profitability are at stake should water become scarce or economically unavailable

B. The company’s actions impact water availability (i.e. Sarsi takes water from communities that may rely on it for other purposes)

C. Stakeholder groups care about water scarcity as well as Sarsi’s policies and its management to such issue

D. None of these statements are false

D. None of these statements are false

It refers to any operation wherein products, components of products, or materials that have become waste are prepared to fulfill a purpose in place of new products, components, or materials that would otherwise have been used for that purpose.

A. Disposal

B. Recovery

C. Recycling

D. Waste treatment

B. Recovery

Which of the following is an example of media groups?

A. One Report

B. Trucost

C. Ceres Coalition

D. Skift

D. Skift

Statement I. Sustainability assurance are required to be performed by CPAs.

Statement II. Sustainability assurance and financial statement audits are part of a big family of ASSURANCE SERVICES.

A. True, True

B. False, False

C. True, False

D. False, True

D. False, True

Which of the following is not a required disclosure for the management approach and its components (for each material topic) under GRI 103 – Management Approach?

A. Explanation of how the organization manages the topic.

B. Statement of the purpose of the management approach.

C. Specific policies, commitments, goals and targets, and other actions addressing the material topic.

D. All of the above are required disclosures under GRI 103.

D. All of the above are required disclosures under GRI 103.

Statement I – The idea of limitation imposed by the state of technology and social organization on the environment’s ability to meet present and future needs.

Statement II – The concept of needs, in particular the essential needs of the world’s poor, to which overriding priority should be given.

A. Only statement I is true.

B. Only statement II is true.

C. Both statements are true.

D. Both statements are not true.

C. Both statements are true.

Statement I. The SEC’s Corporate Governance Division shall strictly monitor SR submissions and study the trends for purposes of policy formulation.

Statement II. SEC’s current chairman is Hon. Cesar Dulay.

Which of the following statements is/are true?

A. Statement I only.

B. Statement II only.

C. Statements I and II.

D. None of the statements.

D. None of the statements.

The following are stakeholders except:

A. Employees

B. Climate change

C. Stockholders

D. None of the choices.

B. Climate change

A phenomenon that misleads consumers about the environmental benefits a firm’s products or services or its environmental practices by communicating positively about their environmental performance.

A. Sustainability Development

B. Greenwashing

C. Sustainability Assurance

D. Fraud

B. Greenwashing

The following are the objectives of sustainability reporting guidelines set by the SEC, except:

A. Make sustainability reporting relevant and value-adding for companies.

B. Help PLCs identify, evaluate, and manage all its EESG risks and opportunities.

C. Help PLCs optimize business operations, improve competitiveness, and long-term success

D. Provide for a mechanism that would allow PLCs to communicate with its stakeholders, including investors

B. Help PLCs identify, evaluate, and manage all its EESG risks and opportunities.

Effective management of Sustainability Risks and Opportunities includes:

A. Reducing the cost of capital through a higher risk profile

B. Staying ahead of emerging sustainability risks and disclosure regulations

C. Increasing exposures to sustainability-related risks

D. Sustainable vision, strategy, and business plans

B. Staying ahead of emerging sustainability risks and disclosure regulations

Statement I. The SEC’s Corporate Governance Division shall strictly monitor SR submissions and  impose penalty for non-submission from year 2 onwards.

Statement II. Non-attachment of the SR to the Annual Report shall be subject to the penalty for  Incomplete Annual Report provided under  SEC Memorandum Circular No. 6, Series of  2005 (Consolidated Scale of Fines).

Which of the following statements is/are true?

A. Statement I only.

B. Statement II only.

C. Statements I and II.

D. None of the statements.

B. Statement II only.

Statement I. The demand for sustainability assurance is a result of organizational stakeholders expressing skepticism over the credibility of published sustainability reports.

Statement II.  Sustainability assurance is still an involuntary undertaking in most jurisdictions and the market is open to different types of SAPs who compete for a share of the market.

A. True, True

B. False, True

C. True, False

D. False, False

C. True, False

__________________is not a fixed state of harmony, but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are made consistent with future as well as present needs.

A. Corporate Social Responsibility

B. Sustainable Development

C. Sustainability

D. Sustainability Reporting

B. Sustainable Development

_____________ is described as a “global, long-term investment research strategy designed to generate sustainable alpha by integrating analysis of global themes, company fundamentals, and governance and stakeholder factors, including environmental and social considerations.

A. GRI

B. UN GC

C. UN PRI

D. GS SUSTAIN

D. GS SUSTAIN

Statement 1: Rejects and recalls of products are included in the determination of reclaimed products and packaging materials.

Statement 2: Disclosures related to reclaimed products and packaging materials are presented as a percentage of the total products sold within the reporting period.

A. True, True

B. True, False

C. False, True

D. False, False

D. False, False

Which of the following is an external benefit of sustainability reporting?

A. Improved management systems

B. Improved company reputation and brand value

C. Motivated Workforce

D. Sustainable vision, strategy, and business plans

B. Improved company reputation and brand value

Which of the following statements is false?

A. Board-level commitment is critical in effectively embedding sustainability within an organization.

B. Sustainability are standardized to be applicable to all nature and size of business organization

C. Sustainability statement reflects the organization’s commitment to consider material sustainability matters in a comprehensive and strategic manner.

D. Sustainability statements are required to be presented in the organization’s annual report or in a separate sustainability report other than the mandatory annual report.

D. Sustainability statements are required to be presented in the organization’s annual report or in a separate sustainability report other than the mandatory annual report.

Which of the following are considered as external sources of sustainability issues?

A. Minutes of meeting

B. Risk management reports

C. Board committee reports

D. Media reports

D. Media reports

Which of the following is not an example of ESG Aggregators and Disseminators?

A. CSRHub

B. Thomson Reuters

C. McKinsey

D. Bloomberg’s ESG Products

C. McKinsey

Statement 1: GRI 102 – General Disclosures is used to report contextual information about an organization and its sustainability reporting practices.

Statement 2: GRI 103 – Management Approach is used to report information about how an organization manages a material topic. These concepts are also applied in each of the topic specific standards.

A. True, True

B. True, False

C. False, True

D. False, False

A. True, True

Sustainability Accounting Standards Board has five general sustainability themes which includes

A. Social

B. Innovation

C. Economic

D. UN SDGs

D. UN SDGs

It includes a description of where the impacts occur for a material topic, and the organization’s involvement with those impacts.

A. Topic Boundary

B. Material Topic Management

C. Management Approach Disclosures

D. Material Impact Management

A. Topic Boundary

Which of the following is true about sustainability reporting?

A. Sustainability reporting is a non-disclosure but a straight communication of environment, social, and governance (ESG) goals-as well as a company’s progress towards them.

B. The only benefit of sustainability reporting is to have improved corporate reputation.

C. A sustainability reporting is the main tool available to an organisation or company to voluntarily communicate its performance and impact – positive or negative – in environmental, social, and governance (ESG) matters.

D. Sustainability reporting plays a role in accountability relationships as it is a means by which organization communicate with a range of stakeholders and such information in the report should be irrelevant to the stakeholders as well.

C. A sustainability reporting is the main tool available to an organisation or company to voluntarily communicate its performance and impact – positive or negative – in environmental, social, and governance (ESG) matters

A fact is material if there is a substantial likelihood that a reasonable investor would view its omission or misstatement as having significantly altered the total mix of information applies to

A. GRI Standards

B. Integrated Framework

C. Sustainability Accounting Standards Board

D. Task Force on Climate-related Financial Disclosure

C. Sustainability Accounting Standards Board

Based on the UN Environment Programme Finance Initiative (UNEP FI) it is the desired state or phase where sustainability is integrated in the Board-level strategy and is a concern addressed throughout the organization.

A. Phase 1 journey of embedding sustainability at the board level

B. Phase 2

C. Phase 3

D. Phase 4

D. Phase 4

The following are primary stakeholders except:

A. Investors

B. Non-managers

C. Competitors

D. Customers

C. Competitors

These are system(s) consisting of procedures, roles and rules for receiving complaints and providing remedy within the reporting organization.

A. Grievance mechanisms

B. Arbitration

C. Dispute settlement

D. Management oversight

A. Grievance mechanisms

These are topic(s) that reflects a reporting organization’s significant economic, environmental, and social impacts; or that substantively influences the assessments and decisions of stakeholders.

A. Topic Boundary

B. Topic

C. Material Topic

D. Sustainability Reporting Topics

C. Material Topic

It explains that sustainability performance of organizations are motivated by social and political pressures.

A. Legitimacy theory

B. Agency theory

C. Institutional theory

D. Signaling theory

A. Legitimacy theory

In providing disclosure requirements for social impacts (from GRI 401: Employment, down to GRI 419: Socio-economic Compliance), the GRI standards places more emphasis on which type of information?

A. Quantitative Information

B. Qualitative Information

C. The standards place equal emphasis on both quantitative and qualitative information.

D. The standards do not provide guidance on reporting quantitative and qualitative

information.

C. The standards place equal emphasis on both quantitative and qualitative information.

S1. During the initial implementation of sustainability reporting in the Philippines, companies also used other frameworks or standards, like Sustainability Accounting Standards Board (SASB), Integrated Reporting (IR) Framework, International Standards Organization (ISO), and Task Force on Climate-related Financial Disclosures (TCFD), to address other topics like climate change or industry-specific material sustainability topics.

S2. In the long-run, SEC wants to implement sustainability reporting to all corporations in a comply or explain approach first.

A. True, True

B. True, False

C. False, True

D. False, False

A. True, True

Which of the following is/are false regarding sustainability matters? *

A. Sustainability matters are material if they reflect the organization’s significant ESG impacts

B. Sustainability matters influences the assessment and decisions of its stakeholders.

C. Sustainability matters are risks and opportunities arising from the ESG impacts of an organization’s operations and activities.

D. Material sustainability matters are all the same regardless of the size or nature of the business organization.

D. Material sustainability matters are all the same regardless of the size or nature of the business organization

GRI Standards include __________ which are particular course/s of action that is/are encouraged, but not required.

A. Requirements

B. Recommendations

C. Guidance

D. All of the above.

C. Guidance

Statement I – The ISO 26000 standard provides requirements for Environmental Management Systems.

Statement II – The ISO 26000 is a voluntary guidance and is not used as a certification standard.

A. Only statement I is true.

B. Only statement II is true.

C. Both statements are true.

D. Both statements are not true.

B. Only statement II is true

We need assurance services because of the following, except:

A. Potential bias in providing information.

B. Remoteness between a user and the organization or trading partner.

C. Understandability of financial jargons by the audit committee.

D. Complexity of the transactions, information or processing systems.

C. Understandability of financial jargons by the audit committee

Statement 1: Information on employees and other workers (permanent and temporary) is a required disclosure under GRI 102 – General Disclosures.

Statement 2: To avoid subjectivity in reporting required disclosures under GRI 102 – General Disclosures, a reporting organization is required to engage an expert or any external party to verify the accuracy of information reported in the reporting organization’s sustainability report.

A. True, True

B. True, False

C. False, True

D. False, False

B. True, False

A properly prepared sustainability report shall cover topics that: (1) reflect the reporting organization’s significant economic, environmental, and social impacts, or (2) substantively influence the assessments and decisions of stakeholders. This is consistent with the reporting principle of:

A. Stakeholder Inclusiveness

B. Sustainability Context

C. Balance

D. Materiality

D. Materiality

Statement I – An organization can measure, and present information related to energy in financial terms referring to its CO2 emissions.

Statement II – An organization can measure, and present information related to waste in non-financial terms about its share of eco-labeled and fair trade products.

A. Only statement I is true.

B. Only statement II is true.

C. Both statements are true.

D. Both statements are not true.

C. Both statements are true.

Organizations need to develop their position or response towards each material sustainability matter that they were able to identify. Which of the following may not be an expected response from the organization to address sustainability issues?

A. Developing policies and procedures to address the issue

B. Implementation of action plans or measures to address the issue

C. Ignore the issue until it does no longer affect the organization

D. Goal setting or establishing performance indicators, targets or timeframes

C. Ignore the issue until it does no longer affect the organization

Assurance engagement

A. Is an engagement in which a practitioner is engaged to issue, or does issue, a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party.

B. Is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.

C. Is an engagement in which the auditor provides a moderate level of assurance that the information subject to the engagement is free of material misstatement.

D. Is an engagement intended to enhance the credibility of information about a subject matter by evaluating whether the subject matter conforms in all material respects with suitable criteria, thereby improving the likelihood that the information will meet the needs of an intended user.

A. Is an engagement in which a practitioner is engaged to issue, or does issue, a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party

Statement I. The Dow Jones Sustainability World Index (W1SGI) is part of a larger family of Dow Jones Sustainability Indices (DJSI) that launched in 1998 as the first global sustainability benchmark. The family of indices includes DJSI World counterparts specific to North America, Europe, Asia Pacific, Korea, Australia, Chile, and emerging markets.

Statement II. An Ayala company in the Philippines has became part of WISGI Dow Jonex Index.

A. True, True

B. False, True

C. True, False

D. False, False

D. False, False

This theory on sustainability posits that organizations are motivated to practice sustainable activities to signal value and status to others as an indicator of good reputation or image to the investors or to the public.

A. Legitimacy theory

B. Agency theory

C. Institutional theory

D. Signaling theory

D. Signaling theory

Assurance on sustainability disclosures and reporting can be provided on all of the following, except:

A. Management processes

B. Disclosures based on the sustainability standards/ frameworks

C. Collection data processes

D. Competence of the assurance provider

D. Competence of the assurance provider

It is a dynamic equilibrium in the process of interaction between a population and the caring capacity of its environment such that the population develops to express its full potential without producing irreversible, adverse effects on the carrying capacity of the environment upon which it depends.

A. Sustainability

B. Materiality

C. Governance

D. Sustainable Development

D. Sustainable Development

Its participants often set forth supplier standards and request data from suppliers, including corporate providers, on ESG topics performance. It encourages businesses worldwide to adopt sustainable and socially responsible policies and to report on their implementation.

A. GRI

B. UN GC

C. UN PRI

D. GS SUSTAIN

B. UN GC

The three types of attestation services are:

A. Audits, review, and compilations

B. Audits, compilations, and other attestation services

C. Reviews, compilations, and other attestation services

D. Audits, reviews, and other attestation services

B. Audits, compilations, and other attestation services

S1. Sustainability reporting leads to investor attractiveness and stakeholder engagement.

S2. Every professional accountant has a role to play in sustainability reporting.

Which of the following statements is/are true?

A. Statement I only.

B. Statement II only.

C. Statement I and II

D. None of the above

C. Statement I and II

S1. Developing a sustainability strategy is an ideal opportunity to engage external stakeholders and colleagues across the business. Indeed, involving senior management is essential to success.

S2. Environmental management involves being aware of how your business operations affect the environment. Regardless of the size and type of business you run, it's possible to manage your impact on the environment.

A. True, True

B. False, True

C. True, False

D. False, False

A. True, True

Organization should consider the following when setting the scope within which materiality will apply except?

A. Operations inside and outside the organization

B. Entities within the organization

C. Operations of its competitors

D. Physical locations of the organization

C. Operations of its competitors

Which of the following statements is false?

A. Accuracy and reliability of sustainable information disclosed by organizations are important for informed business decision-making.

B. Independent opinion as to the accuracy and reliability of sustainability performance and disclosures can be provided through internal assurance.

C. Internal assurance relies on the accountability of an organization’s governance body towards sustainability performance and disclosures.

D. Assurance process should be conducted based on a recognized standard.

B. Independent opinion as to the accuracy and reliability of sustainability performance and disclosures can be provided through internal assurance.

It defines six capitals,  seven guiding principles,  and eight content  elements of a report

A. GRI

B. Integrated Framework

C. Sustainability Accounting Standards Board

D. Task Force on Climate-related Financial Disclosure

E. IFRS 6 Evaluation and Exploration of Mineral Resources

B. Integrated Framework

Enumerated below are the steps on materiality assessment process. Which of the following choices corresponds to the correct order/ sequence of materiality assessment process?

1. Prioritization

2. Stakeholder Engagement

3. Identification and Categorization of Sustainability issues

4. Process Review

5. Scope and objective

A. 3, 5, 1, 2, 4

B. 5, 3, 2, 1, 4

C. 1, 2, 3, 5, 4

D. Data is incomplete

B. 5, 3, 2, 1, 4

The sustainability reporting head of XYZ Co. is concerned about the GRI reporting requirements about the proper presentation of information about a material topic. Which reporting principle aspect should he/she refer to?

A. RP for defining report content

B. RP for defining report quality

C. Both A and B

D. Neither A nor B

C. Both A and B

All of the following are reporting principles for defining report content, except:

A. Stakeholder Inclusiveness

B. Sustainability Context

C. Completeness

D. Balance

D. Balance

The elements of assurance services are the following except:

A. Three-party relationship

B. Subject matter

C. Evidence

D. Suitable criteria

E. Report

F. All are correct.

F. All are correct.