1. What is the major innovation in integrated reporting AND Engine No 1's Total Value Framework?

Using audited data

Following new international accounting standards

Following new US regulatory standards

Using dollars to measure ESG impacts

Combining data from each of the three approaches

1. One of the major challenges in computing total value is [Choose all that apply]:

Estimating a firm's impact on ESG factors

Taking into account upstream or downstream impacts

The difficulty of comparing impacts across different ESG factors (e.g., climate risk, water, living wage)

Assigning a cost to ESG factors

Dealing with missing or conflicting data

3. Shareholder value will be most closely aligned with total value where [Choose all that apply]:

Stakeholders care about the externalities imposed upon them are willing to expend time, effort, and cost to address them

Firms in the same industry differ dramatically in their ratio of externalities to total value

Stakeholders have good information on the externalities imposed upon them

Government regulations punish companies who generate negative externalities

Government allows the market to address externalities

1. What are the three primary approaches to measuring a company's ESG performance?

Expert surveys

Assess the impact of ESG factors on the balance sheet via intangible assets or potential impacts on the P&L

Analyze third party sentiment directed at the firm on ESG factors as reported in the media

Identify good and bad practices, processes and outcomes from voluntary reporting and other sources

Regulatory filings