Mastering TCFD, SASB, GRI & EU Taxonomy: The All-in-One Guide for CFA Sustainable Investing Exam Success
- Kateryna Myrko
- Jul 6
- 4 min read
Getting a firm grasp on the four cornerstone frameworks—TCFD, SASB, GRI and the EU Taxonomy—is essential for any candidate aiming to excel on the CFA Sustainable Investing Exam. This all-in-one guide distills the most up-to-date insights on each framework, highlights their interconnections, and lays out targeted study strategies to help you master exam-relevant content.
Why These Four Frameworks Matter for the CFA Sustainable Investing Exam TCFD, SASB, GRI & EU Taxonomy, CFA Sustainable Investing Exam
The CFA Sustainable Investing Exam places heavy emphasis on the ability to interpret, compare and apply key disclosure standards. Regulators and financial institutions worldwide have increasingly adopted these frameworks to promote transparency, guide capital allocation and mitigate sustainability risks. As a result, exam questions often test:
Framework structures and scopes (e.g. thematic pillars of TCFD, sector specificity of SASB)
Comparative analysis (differences and overlaps among frameworks)
Real-world application (case studies, example disclosures)
Anchoring your prep on these four pillars will not only cover a large share of the curriculum’s reporting and disclosure domain but also demonstrate to exam graders your deep, integrated understanding of sustainable investing practice. TCFD, SASB, GRI & EU Taxonomy, CFA Sustainable Investing Exam
1. Task Force on Climate-related Financial Disclosures (TCFD)
Core focus: Climate-related governance, strategy, risk management, and metrics & targets
Status: Following its final 2023 Status Report, the TCFD has been formally disbanded under the Financial Stability Board’s mandate—making its published recommendations the definitive legacy standards through which climate disclosures are judged
Exam relevance:
Understand the four thematic “pillars” and the recommended disclosures under each.
Be prepared to analyze sample climate disclosures against TCFD guidance (e.g., assessing whether a company’s risk management discussion aligns with TCFD’s risk pillar).
Recognize how TCFD recommendations underpin newer ISSB standards (e.g., IFRS S2) and their integration in global reporting.
Study Tip
Create a one-page “pillars matrix” summarizing the objectives and example metrics for each TCFD pillar. Drill on sample disclosures from the TCFD 2023 Status Report to identify real-world alignment or gaps.
2. Sustainability Accounting Standards Board (SASB)
Core focus: Industry-specific, investor-centric sustainability metrics across 77 sectors
2025 updates: The ISSB’s 2024–2026 work plan includes exposure drafts for targeted enhancements to select SASB Standards—with two drafts published in July 2025 covering Electric Utilities & Power Generators and select Food & Beverage industries
Exam relevance:
Memorize how SASB categorizes sustainability topics by industry and the rationale for metric selection.
Practice mapping example company data to SASB metrics (e.g., a mining company’s water management disclosures).
Compare SASB’s prescriptive, quantitative approach with TCFD’s principle-based recommendations.
Study Tip
Build flashcards pairing each industry group with its top three SASB metrics. Incorporate ISSB exposure-draft changes to stay current on proposed content enhancements.
3. Global Reporting Initiative (GRI)
Core focus: Comprehensive, stakeholder-centric sustainability reporting covering economic, environmental and social impacts
Latest version: The Universal Standards (GRI 1: Foundation, GRI 2: General Disclosures, GRI 3: Material Topics) came into effect on 1 January 2023, with early adoption encouraged. Recent GRI updates (e.g., additions to GRI 102 & 103 on climate and energy impacts) emphasize alignment with IFRS S2 reporting principles
Exam relevance:
Differentiate GRI’s “comprehensive” reporting model from SASB’s “focused” model.
Understand the structure of Universal Standards and how material topics are identified and disclosed.
Be ready to interpret sample disclosures using GRI index tables (e.g., matching report content to GRI 2 indicators).
Study Tip
Draft a side-by-side table contrasting GRI’s four content principles (stakeholder inclusiveness, sustainability context, materiality, completeness) against TCFD’s four pillars. Use sample index tables from GRI reports for practice.
4. EU Taxonomy for Sustainable Activities
Core focus: A classification system defining “green” economic activities aligned with the EU’s net-zero-by-2050 goals
2025 amendments: The EU’s Omnibus I Delegated Act (draft published February 2025) introduces simplification measures—effective 1 January 2026—to reduce reporting red tape and clarify “do no significant harm” criteria for the 2025 financial year
Exam relevance:
Know the six environmental objectives and the technical screening criteria that activities must meet.
Practice evaluating whether a given activity (e.g., renewable energy project) qualifies under the Taxonomy’s climate-mitigation and adaptation criteria.
Compare the Taxonomy’s activity-based approach with GRI’s impact-based reporting and SASB’s metric-driven model.
Study Tip
Create a flowchart that walks through the Taxonomy’s screening process: starting with eligibility, then “substantial contribution” and “do no significant harm” tests, and ending with minimum safeguards.
Integrating Frameworks: Exam-Ready Strategies
Cross-Framework Matrices: Build tables that map similar concepts (e.g., materiality, risk management) across all four frameworks—this visualization aids rapid recall under exam time pressure.
Case Study Drills: Leverage real company reports (e.g., major banks or utilities) and evaluate their disclosures against each framework’s criteria. Simulate exam scenarios by timing your analysis.
Practice Questions: Focus on scenario-based MCQs that require you to choose the best disclosure approach (e.g., “Under which framework would you report quantitative greenhouse-gas metrics as prescriptive indicators?”).
Exam-Day Fact Sheets: Prepare a one-page “quick reference” with key definitions, pillar/standard structures and metric examples. Review this sheet daily in the final two weeks.
Are you preparing for the Sustainable Investing Certificate
(CFA ESG Investing) in 2025?
Boost your chances of success on the Sustainable Investing Certificate with the right preparation—explore our exclusive study materials and resources to excel in your certiication journey!
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