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ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability

An assurance practitioner is engaged to report on Brenmore Ltd's sustainability report, which was prepared using the GRI Standards. Management asks the practitioner to explain how GRI differs from the ISSB's IFRS S1 and S2. Which statement is correct?

GRI Standards address the organisation's impacts on the economy, environment and people, while IFRS S1 and S2 address sustainability-related risks and opportunities that affect enterprise value and are aimed at investors. The other statements reverse this focus or wrongly claim universal mandatory or voluntary status.

  1. AGRI Standards focus on an organisation's impacts on the economy, environment and people, whereas IFRS S1 and S2 focus on sustainability-related risks and opportunities affecting enterprise value and investorsCorrect
  2. BGRI Standards focus only on climate-related financial risks to investors, whereas IFRS S1 and S2 focus on the organisation's impacts on society
  3. CGRI Standards and IFRS S1 and S2 both focus exclusively on information that affects enterprise value
  4. DGRI Standards are mandatory for all listed entities, whereas IFRS S1 and S2 are voluntary for all entities

Explanation

GRI uses an impact perspective, covering effects on the economy, environment and people. IFRS S1 and S2 target information useful to investors about risks and opportunities affecting enterprise value. The other options reverse or misstate this distinction and wrongly describe mandatory status.

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