Chapter 15: ESG Considerations in Financial Statement Analysis

In this section

• Incorporating Environmental, Social, and Governance Data
  Incorporating Environmental, Social, and Governance Data (CFA Level 1): Defining ESG and Its Relevance, Sources of ESG Data, and Reliability Checks and Comparing Data. Key definitions, formulas, and exam tips.
• Materiality of ESG Issues in Financial Reporting
  Materiality of ESG Issues in Financial Reporting (CFA Level 1): Double Materiality and Broader Stakeholder Impact, Key Regulatory Definitions and Standards, and Collaborating to Identify ESG Materiality. Key definitions, formulas, and exam tips.
• ESG Disclosure Frameworks and Standards
  ESG Disclosure Frameworks and Standards (CFA Level 1): Understanding the Core Frameworks, Global Reporting Initiative (GRI), and Sustainability Accounting Standards Board (SASB). Key definitions, formulas, and exam tips.
• Integrating ESG into Ratio and Trend Analysis
  Integrating ESG into Ratio and Trend Analysis (CFA Level 1): Linking ESG Factors to Traditional Financial Ratios, Common ESG Metrics for Ratio Analysis, and Integrating ESG Metrics with Traditional Ratios. Key definitions, formulas, and exam tips.
• Corporate Reporting Practices and ESG Metrics
  Corporate Reporting Practices and ESG Metrics (CFA Level 1): Common ESG Reporting Structures, Environmental (E) Metrics, and Social (S) Metrics. Key definitions, formulas, and exam tips.
• Carbon Emissions Reporting and Assurance
  Carbon Emissions Reporting and Assurance (CFA Level 1): Key Concepts in Carbon Emissions Reporting, Scope 1, Scope 2, and Scope 3: Defining, and Calculating Emissions: The GHG Protocol and Emission Factors. Key definitions, formulas, and exam tips.
• Green Bond Reporting and Sustainability-Linked Finance
  Green Bond Reporting and Sustainability-Linked Finance (CFA Level 1): Key Features of Green Bonds, Use of Proceeds and Project Criteria, and Segregation of Funds. Key definitions, formulas, and exam tips.
• Social Impact Metrics in ESG Disclosure
  Social Impact Metrics in ESG Disclosure (CFA Level 1): Common Social Indicators, Social Controversies and Reputational Damage, and Supply Chain Transparency. Key definitions, formulas, and exam tips.
• Climate-Related Contingencies and Provisions
  Climate-Related Contingencies and Provisions (CFA Level 1): Distinguishing Climate-Related Contingencies from Traditional Contingencies and Legal Disclosure of Climate-Related Contingencies. Key definitions, formulas, and exam tips.
• Potential ESG Liabilities and Intangible Assets (e.g., Carbon Credits)
  Potential ESG Liabilities and Intangible Assets (e.g., Carbon Credits) (CFA Level 1): Understanding Potential ESG Liabilities and Intangible Assets and Key ESG Intangibles: Carbon Credits and Beyond. Key definitions, formulas, and exam tips.