EcoFurniture Inc., an organization producing eco-friendly furniture, is conducting Step B of its double materiality assessment. During this step it identifies potential deforestation impacts in its upstream value chain due to its timber sourcing and reputational risks related to environmental standards compliance. Which of the following actions should EcoFurniture take during Step B to ensure a comprehensive assessment of its actual and potential IROs? Select all that apply.

• A. Use scientific research to validate sustainability trends and risks in the forestry sector.
• B. Conduct stakeholder engagement with local communities near timber supply locations.
• C. Screen sustainability matters listed in ESRS 1 AR 16 and compare them to its entity-specific sustainability matters.
• D. Ignore potential risks in the downstream value chain, as they are less material.

How do the ESRS define stakeholders?

• A. Those who can support or benefit from the undertaking.
• B. Those who can affect or be affected by the undertaking.
• C. Those who can influence or contribute to the undertaking.

Which of the following statements about the CSRD reporting mandate are correct? Select all that apply.

• A. The CSRD mandate does not require external assurance for sustainability reporting.
• B. The CSRD requires a double materiality assessment to be conducted for sustainability reporting.
• C. The organizations reporting under the CSRD do not need to report value chain information.
• D. The CSRD only applies to companies headquartered in the EU.
• E. The CSRD is tied to other EU legislation which companies subject to the CSRD may need to comply with.
• F. The organizations reporting under the CSRD need to follow a specific reporting format.

Which activities are part of Step A: Understanding the Context in the double materiality assessment process?
Select all options that apply.

• A. Developing a list of material risks and opportunities
• B. Engaging with affected stakeholders to gather input
• C. Mapping the organization's value chain
• D. Analyzing the legal and regulatory landscape

Which of the following correctly fills the gaps in the paragraph below?
The first set of the ESRS consist of several standards: The first group includes __________ General requirements and __________ General disclosures. These standards apply regardless of the specific sustainability topic being reported.
The next group includes ten __________ that cover various topics across the three dimensions of sustainable development. For example, ESRS E1 focuses on the environmental dimension, particularly climate change.
Finally, the last group includes the __________ which are currently under development.

• A. ESRS 1; ESRS 2; topical standards; sector-specific standards
• B. topical standards; ESRS 2; ESRS 1; sector-specific standards
• C. ESRS 2; ESRS 1; topical standards; sector-specific standards
• D. ESRS 2; topical standards; sector-specific standards; ESRS 1