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ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders

Brelmont Ltd operates in several jurisdictions. Its board is preparing a sustainability report and wants to disclose how governance bodies oversee climate-related risks and opportunities, how those risks affect strategy, how they are identified and managed, and which metrics and targets are used. Which framework structure does this describe?

The scenario describes the TCFD structure, also built into IFRS S2, with four pillars: governance, strategy, risk management, and metrics and targets. Each item the board wants to disclose maps directly to one pillar, unlike the other models, which address competition, performance or assurance.

  1. AThe four pillars of the TCFD recommendations: governance, strategy, risk management, metrics and targetsCorrect
  2. BThe five forces of competitive analysis
  3. CThe Balanced Scorecard perspectives
  4. DThe three lines model of internal assurance

Explanation

The TCFD recommendations, which are incorporated into IFRS S2, are organised around governance, strategy, risk management, and metrics and targets. The scenario lists exactly those four elements. The other models relate to competition, performance measurement and assurance roles.

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