CS Professional · December 2025 · Paper 1
CS Professional Environmental, Social and Governance (ESG) - Principles and Practice December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 5 | Roles and responsibilities of independent directors under the Companies Act and LODR where independence is only nominal | Board Effectiveness and Building Better Boards |
| 1(b) | 5 | Criteria and parameters for performance evaluation of independent directors | Board Effectiveness and Building Better Boards |
| 1(c) | 5 | Consequences of CSR fund diversion and measures to strengthen CSR governance and monitoring | Corporate Social Responsibility (CSR) |
| 1(d) | 5 | How weak risk management led to a governance crisis and steps to build a stronger risk framework | Risk Management |
| 2(a) | 5 | Lokpal inquiry powers equivalent to a civil court: summoning persons, requisitioning records and issuing commissions | Business Ethics, Code of Conduct and Anti-Bribery |
| 2(b) | 5 | Company engagement with a SEBI-registered proxy advisor on methodology, clarifications and conflict of interest | Governance Influencers |
| 2(c) | 5 | Responsibilities of the Stakeholders Relationship Committee under LODR for security holder grievances | Stakeholders Rights |
| 3(a) | 5 | Validity of a video-conference board meeting and quorum when a director drops to audio or joins without intimation | Board Processes through Secretarial Standards |
| 3(b) | 5 | Internal controls a listed company should adopt to prevent insider trading under the PIT Regulations | Business Ethics, Code of Conduct and Anti-Bribery |
| 3(c) | 5 | Lessons from the Japanese family business model for succession and multi-generational continuity | Concept of Governance in Professional Managed Company and Promoters Driven Company |
| 4(a) | 5 | Key elements of a product data governance strategy for an e-commerce marketplace | Data Governance |
| 4(b) | 5 | Resolving an employee conflict of interest in vendor selection under a code of ethics | Business Ethics, Code of Conduct and Anti-Bribery |
| 4(c) | 5 | Benefits of AI-powered data governance in the context of GDPR and DPDP Act compliance | Data Governance |
| 4A(i) | 5 | Local procurement programmes and their benefits for sustainable supply chains | Corporate Social Responsibility (CSR) |
| 4A(ii) | 5 | Applying the UK Cyber Governance Code of Practice to board oversight and reporting of cyber risk | Data Governance |
| 4A(iii) | 5 | Information a listed entity must host on its website under the LODR Regulations | Board Disclosures and Website Disclosures |
| 5(a) | 5 | Steps in the risk management process | Risk Management |
| 5(b) | 5 | Fraud risk management processes to prevent vendor collusion and invoice manipulation | Risk Management |
| 5(c) | 5 | Principles of reputation risk management applied to negative stakeholder feedback on social media | Risk Management |
| 5(d) | 5 | Applicability of mandatory internal auditor appointment to a private company based on turnover and borrowing thresholds | Risk Management |
| 5A(i) | 5 | Distinction between risk transfer and risk reduction as risk treatment options | Risk Management |
| 5A(ii) | 5 | Cyber security risk management process | Risk Management |
| 5A(iii) | 5 | Improvements a company should make after a ransomware incident to address cyber security risk | Risk Management |
| 5A(iv) | 5 | Meaning of climate risk and the steps in a climate risk management process | Risk Management |
| 6(a)(i) | 4 | Approach behind the BRSR Core framework and practical challenges in a first-time BRSR | Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting |
| 6(a)(ii) | 4 | Nature of disclosures required under the BRSR framework | Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting |
| 6(b)(i) | 3 | Importance of ESG reporting for business and stakeholders | Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators |
| 6(b)(ii) | 4 | Changes companies must make to prepare for evolving global ESG reporting mandates | Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators |
What stood out
- Paper is built around integrated cases: Q1 (20 marks), Q5 or 5A (20 marks) and Q6 (15 marks) are all case-study based, so 55 of 100 marks rest on long fact patterns; Q2 to Q4 are short problem situations.
- Risk Management is the single heaviest chapter: Q1(d) plus all eight parts of Q5 and its alternative Q5A, covering fraud, reputation, cyber, climate risk and internal audit applicability.
- Board-level governance remains core: independent director roles and evaluation, video-conference board meetings, the Stakeholders Relationship Committee and LODR website disclosures each appear.
- Data and cyber governance gets a full optional block, with three of the six Q4/Q4A parts on data governance strategy, AI-driven data governance and the UK cyber governance code.
- ESG reporting is confined to Part III: BRSR Core approach and disclosures plus global ESG reporting mandates, testing application rather than definitions.
Practise the chapters that carried the marks
Risk Management, Business Ethics, Code of Conduct and Anti-Bribery, Data Governance: study guides and practice questions in the CS Professional format.