GRI Exam ESRS-Professional Topic 4 Question 3 Discussion

Actual exam question for GRI's ESRS-Professional exam

Question #: 3
Topic #: 4

[All ESRS-Professional Questions]

Indicate whether the following statement is true or false.

The EU Taxonomy and ESRS digital taxonomy serve the same purpose in sustainability reporting.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

The EU Taxonomy and the ESRS digital taxonomy serve different purposes in sustainability reporting:

EU Taxonomy is a classification system that identifies environmentally sustainable economic activities and establishes criteria for determining their contribution to environmental objectives. It is primarily used to guide investment decisions and financial disclosures.

ESRS Digital Taxonomy is a structured digital framework that ensures sustainability disclosures are machine-readable, standardized, and comparable under the Corporate Sustainability Reporting Directive (CSRD).

Key Differences:

Aspect

EU Taxonomy

ESRS Digital Taxonomy

Purpose

Classifies sustainable economic activities

Enables structured digital sustainability reporting

Scope

Environmental focus on investments & economic activities

Comprehensive reporting across environmental, social, and governance (ESG) areas

Users

Financial institutions, investors

Reporting entities, auditors, regulators

Regulation

Under EU Taxonomy Regulation (2020/852)

Under CSRD (Directive 2022/2464/EU)

EU Platform on Sustainable Finance Report: Simplifying the EU Taxonomy

Commission Delegated Regulation (EU) 2023/2772

by Ashley at Mar 06, 2025, 12:16 PM

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Odette

16 hours ago

That's an interesting perspective. Can you explain why you think they serve the same purpose?

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Francis

2 days ago

I believe they serve similar purposes in sustainability reporting.

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Odette

3 days ago

I think the EU Taxonomy and ESRS digital taxonomy have different focuses.

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Delisa

9 days ago

Haha, this is like asking if a screwdriver and a hammer serve the same purpose. Totally different tools, you know? I'm going to have to say false on this one.

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Thaddeus

12 days ago

I'm going to go with false on this. The EU Taxonomy is like the sustainability rulebook, while the ESRS is the instruction manual for how to report that information. Totally different things, if you ask me.

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Lawrence

14 hours ago

I agree, the EU Taxonomy sets the standards while the ESRS helps with reporting.

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Ngoc

18 days ago

I'm leaning towards false on this one. The EU Taxonomy is all about defining what's considered sustainable, while the ESRS is more about the technical side of reporting. They seem to have different goals, if I'm not mistaken.

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Lettie

4 days ago

That's correct, the EU Taxonomy and ESRS serve different purposes in sustainability reporting.

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Pilar

6 days ago

Yes, the EU Taxonomy sets the criteria for what can be considered sustainable, while ESRS is more about the technical aspects of reporting.

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Hollis

8 days ago

I agree, the EU Taxonomy focuses on defining sustainability criteria, while ESRS is more about reporting standards.

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Francis

21 days ago

B) False

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Odette

24 days ago

A) True

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Christa

27 days ago

False, that's an easy one. The EU Taxonomy is about classifying sustainable economic activities, while the ESRS digital taxonomy is about the format of sustainability reporting. Totally different purposes, in my opinion.

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Mabel

30 days ago

Hmm, I think this is a bit tricky. The EU Taxonomy and ESRS digital taxonomy seem similar, but I'm not sure if they serve the same purpose. I'll have to do some more research on this one.

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Anjelica

13 days ago

I agree, they might have some similarities but serve different purposes.

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Tonette

14 days ago

I think the statement is false.

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