- What "Domains" Mean for This Exam
- Exam Format and Booking Mechanics
- Domain 1: Identifying the Sustainability Issues Relevant to Financial Performance
- Domain 2: Evaluating the Comparability of Sustainability Information
- Domain 3: The Connection Between Sustainability Performance and Valuation
- The 10 Learning Objectives at a Glance
- Sequencing the Three Domains in Your Preparation
- Where These Skills Get Used
- Frequently Asked Questions
- The IFRS Foundation Level II outline has 3 parts, 9 chapters, 24 subheadings and 10 learning objectives.
- No official domain weights were verified, so do not assume any domain is "worth more" than another.
- The exam is case-based multiple choice: 55 questions tied to 13 cases, in 2 hours, delivered via Pearson VUE.
- Public samples include single-answer and choose-two multiple-answer items sharing one case.
What "Domains" Mean for This Exam
Most certification candidates are used to a published blueprint: a table of domains with a percentage next to each one. The Fundamentals of Sustainability Accounting (FSA) Credential Level II does not present itself that way in the sources we could verify. What the IFRS Foundation publishes is a Level II Curriculum Outline with Learning Objectives (marked "Last Updated: 11/22"), which divides preparation into three parts, nine chapters and 24 numbered subheadings. The three "domains" used throughout this site are simply those three part headings.
That distinction matters. The domain names below describe how the curriculum is organized, not an official weighted exam blueprint. Curriculum headings also do not guarantee exhaustive exam coverage, so treat them as the best available map rather than a contract. Note too that "FSA-II" is a local level label on this site; the issuer calls the exam the FSA Credential Level II exam. Passing Level II after Level I earns the FSA Credential, and this site focuses on Level II only.
Exam Format and Booking Mechanics
Before diving into the content areas, it helps to understand how the exam delivers them. Level II is a case-based multiple-choice exam. The current IFRS page associates 55 multiple-choice questions with 13 cases; an older handbook figure of 53 questions was also preserved in our reviewed metadata, and the split between scored and unscored items is not disclosed in the sources we retrieved. The time allowed is 2 hours (120 minutes).
| Item | What the sources support |
|---|---|
| Governing body | IFRS Foundation |
| Delivery | Pearson VUE test centre or OnVUE online proctoring |
| Level II fee | US$650 standard/non-member; US$500 for qualifying IFRS Sustainability Alliance members (before applicable taxes) |
| Question style | Case-based multiple choice; single-answer and multiple-answer (including choose-two) |
| Length | 55 questions on the current IFRS page; 120 minutes |
| Testing windows | January-February, May-June, September-October |
| Attempt limit | Maximum of three sittings per level |
| Prerequisite | Passing Level I |
The public sample describes several questions sharing a single case, and the interface uses a split-screen layout with the case on one side and the question on the other, plus computer tools such as a calculator and whiteboard. That structure shapes how you should prepare: you are rarely recalling a definition in isolation. You are reading a company scenario and applying a framework to it. For fee detail, including the fact that these are Level II fees only and not the cost of both levels or a prep course, see FSA-II Certification Cost 2026: Complete Pricing Breakdown. For scheduling windows and rescheduling rules, see FSA-II Exam Dates 2026: Testing Windows, Deadlines & Scheduling.
Domain 1: Identifying the Sustainability Issues Relevant to Financial Performance
The first part of the curriculum asks a deceptively simple question: which sustainability issues actually matter for this company? It spans three chapters (Chapters 1 to 3 in the outline) and builds the vocabulary the rest of the exam relies on.
Chapter 1: How a Company's Circumstances Influence Material Sustainability Issues
Circumstances shape materiality
Two companies in the same industry can face different material issues because of their internal and external circumstances. Chapter 1 covers three subheadings:
- Considerations that shape each industry's sustainability profile
- Evaluating how a company's circumstances influence material sustainability factors
- The influence of governance and management practices
The tested skill is moving from an industry-level starting point to a company-specific conclusion. A cement producer operating in a region with stringent carbon pricing, for example, has a different exposure profile than a peer in a jurisdiction without it, even though both sit in the same industry. Expect case scenarios that give you business-model details, geography and governance cues, then ask which issue is most relevant or why a particular issue is less relevant than the industry norm would suggest.
Chapter 2: Understanding Sustainability Issues
The universe of issues and their interrelations
Chapter 2 has two subheadings: the universe of sustainability issues, and identifying interrelated impacts.
- Distinguish sustainability issues in general from those that affect enterprise value
- Recognize that issues interact, so one issue can amplify or offset another
This chapter lines up with Learning Objective 3: distinguishing sustainability issues, enterprise-value effects and interactions between issues. A common trap is treating every environmental or social topic as financially relevant. The exam rewards the discipline of asking whether and how an issue connects to the company's financial position or performance.
Chapter 3: Evaluating Sustainability Issues
Applying the five factors
Chapter 3 covers applying the five factors, contextualizing sustainability topics, and making use of the findings. Learning Objective 4 asks you to apply the five-factor evaluation to a company's exposure to a sustainability issue.
- Work through the five-factor evaluation methodically rather than by intuition
- Place topics in context before drawing conclusions
- Decide what to do with the findings, not just how to generate them
Because the five-factor evaluation is an explicit framework taught in the curriculum, it is a high-leverage item to learn thoroughly from the official materials. Practice applying it to unfamiliar company descriptions, not only to the examples you have already read.
Domain 2: Evaluating the Comparability of Sustainability Information
The second part shifts from "what matters" to "can we compare it fairly?" It covers Chapters 4 to 6 and is the most quantitative-leaning section of the outline, though it is still tested through case-based multiple choice rather than long computation.
Chapter 4: Normalizing Data for More Effective Comparisons
Normalization
Raw sustainability figures are rarely comparable across companies of different sizes. Chapter 4 covers when to normalize ESG data, selecting appropriate measures for normalization, and normalizing for comparative analysis.
- Decide whether a given comparison actually requires normalization
- Choose a denominator that fits the metric and the question being asked
- Carry out the normalization and interpret the result
Learning Objective 5 targets this directly: distinguishing suitable approaches for normalizing sustainability data. Expect questions where more than one denominator seems plausible and you must pick the one that matches the economic driver of the metric.
Chapter 5: Analyzing the Spread of Industry Performance
Distributions, outliers and data quality
Chapter 5 has four subheadings: getting to know your ESG data, analyzing data distribution, outliers and non-normal distributions, and considering data quality.
- Understand the shape of an industry's data before benchmarking against it
- Recognize when outliers or skewed distributions distort a comparison
- Weigh data quality when deciding how much confidence a figure deserves
This chapter supports Learning Objective 6, assessing variation in sustainability performance across an industry. The practical habit to build is skepticism: before declaring a company a leader or laggard, ask what the distribution looks like and whether the underlying data is reliable.
Chapter 6: Considering Company-Specific Context
Context behind peer differences
Chapter 6 covers a company's operating environment and management and governance decisions. Learning Objective 7 asks you to compare peer performance while accounting for operating conditions, management and governance.
- Separate differences driven by operating conditions from differences driven by management choices
- Avoid penalizing or rewarding a company for factors outside its control
This is where Domain 1 and Domain 2 meet. A peer comparison that ignores context can mislead, so cases often present two companies with different metrics and ask which explanation best accounts for the gap.
Key Takeaway
Comparability questions reward a consistent sequence: decide whether to normalize, pick the right measure, check the distribution and data quality, then adjust the interpretation for company context. Practice that sequence on every case rather than jumping to a conclusion.
Domain 3: The Connection Between Sustainability Performance and Valuation
The third part ties the analysis to money. It covers Chapters 7 to 9 and is where the credential distinguishes itself from a purely descriptive ESG course.
Chapter 7: Characterizing Financial Impact
From issue to financial effect
Chapter 7 covers identifying risks and opportunities, assessing the likelihood, timing and magnitude of impacts, and the process for identifying metric types and categories.
- Frame an issue as a risk or an opportunity to the business
- Judge how likely, how soon and how large the financial effect could be
- Map sustainability metrics to financial-impact categories
Learning Objective 8 captures this: connecting sustainability metrics with financial-impact categories and with the likelihood, timing and magnitude of effects. Learning Objective 9 extends it to how performance on SASB metrics relates to revenue, expenses, assets, liabilities and the cost of capital.
Chapter 8: Using Sustainability Data in Financial Valuation
Discounted cash flow and channels of impact
Chapter 8 offers an overview of discounted cash flow and identifies channels of financial impact.
- Understand where in a DCF model a sustainability factor can show up
- Trace the channel from an operational issue to cash flows or the discount rate
You do not need to be a valuation specialist, but you should be comfortable reasoning about which DCF inputs a given sustainability issue would plausibly change, and in which direction.
Chapter 9: Integrating ESG Beyond DCF
Returns, profitability and scenarios
Chapter 9 closes the curriculum with evaluating returns and profitability and with scenario analysis. Learning Objective 10 asks you to translate sustainability-performance analysis into financial-valuation adjustments.
- Assess how sustainability performance relates to returns and profitability
- Use scenario analysis to handle uncertainty that a single forecast cannot capture
Because the exam is case-based, valuation-oriented questions typically arrive with a short company narrative and ask what adjustment is most appropriate, or which of two statements about a scenario is correct. The skill is judgment, not memorized formulas.
The 10 Learning Objectives at a Glance
The learning objectives are the most granular public statement of what the credential expects. Below they are paraphrased and mapped to the three domains used on this site.
| Domain | Learning objectives (paraphrased) |
|---|---|
| Domain 1: Identifying the Sustainability Issues Relevant to Financial Performance | 1. Evaluate how internal operations change relevant sustainability topics. 2. Evaluate how external operating conditions change company-specific relevance. 3. Distinguish sustainability issues, enterprise-value effects and interactions between issues. 4. Apply the five-factor evaluation to exposure to an issue. |
| Domain 2: Evaluating the Comparability of Sustainability Information | 5. Distinguish suitable approaches for normalizing data. 6. Assess variation in performance across an industry. 7. Compare peer performance while accounting for operating conditions, management and governance. |
| Domain 3: The Connection Between Sustainability Performance and Valuation | 8. Connect metrics with financial-impact categories and likelihood, timing and magnitude. 9. Evaluate how SASB-metric performance relates to revenue, expenses, assets, liabilities and cost of capital. 10. Translate analysis into financial-valuation adjustments. |
Note that the mapping of objectives to parts is an organizing aid based on the chapter content, not an official weighting. For a printable summary of the facts above, the FSA-II Cheat Sheet 2026: One-Page Review of Must-Know Facts is a useful companion.
Sequencing the Three Domains in Your Preparation
The three domains build on one another, which suggests a natural order. Domain 1 gives you the vocabulary (materiality, the five factors, interacting issues). Domain 2 teaches you to trust or discount data. Domain 3 asks you to use both to adjust a valuation. Reversing that order tends to leave you memorizing valuation mechanics without a firm grip on why a given issue matters.
Domain 1 foundations
- Work through Chapters 1 to 3 and practice the five-factor evaluation on unfamiliar company descriptions
- Write a one-line distinction between a sustainability issue and an enterprise-value effect
Domain 2 comparability
- Cover Chapters 4 to 6, focusing on choosing denominators and spotting distorting outliers
- Attempt comparison cases where context explains the gap between peers
Domain 3 valuation links
- Cover Chapters 7 to 9, mapping each metric type to a financial-impact category and a DCF input
- Practice multiple-answer items where more than one adjustment is defensible
Integrated case practice
- Read full cases end to end, then answer every attached question before checking explanations
- Revisit any chapter where you consistently pick the second-best option
This is a sketch, not a prescription; your background will change the balance. Candidates from an accounting or finance background often find Domain 3 quicker and Domain 1 more unfamiliar, while sustainability specialists often face the opposite. Adjust accordingly, and see the FSA-II Study Guide 2026: How to Pass on Your First Attempt for a fuller planning framework. If you want to gauge the effort involved, How Hard Is the FSA-II Exam? Complete Difficulty Guide 2026 discusses what makes the case-based format demanding.
Where These Skills Get Used
The three domains mirror work that happens in several kinds of roles: investment analysis and equity research, credit and risk assessment, corporate finance and investor relations, sustainability reporting and strategy, audit and assurance support, and advisory work that connects sustainability data to financial decisions. We have not verified salary figures or hiring statistics for the credential, so we will not quote any here. If you are weighing the career case, FSA-II Jobs, FSA-II Salary Guide 2026: Complete Earnings Analysis and Is the FSA-II Certification Worth It? Complete ROI Analysis 2026 take up those questions.
Two administrative points are worth knowing before you book. Passing Level I is the official prerequisite, and no mandatory degree, designation or experience hours were verified for Level II. A partner organization, AICPA & CIMA, publishes guidance of a two-year window to complete Level II after Level I, after which Level I must be retaken; the current handbook was not retrieved to confirm this, so verify it with the issuer. For eligibility details, see FSA-II Requirements 2026: Eligibility, Prerequisites & How to Qualify.
Frequently Asked Questions
None were verified. The three domains used here reproduce the three preparation-part headings in the IFRS Foundation's Level II curriculum outline, not a weighted exam blueprint. Without published weights, avoid skipping any domain on the assumption that it counts for less.
The current IFRS page associates 55 multiple-choice questions with 13 cases, and the exam time is 2 hours (120 minutes). An older handbook figure of 53 questions was also preserved, and the scored versus unscored allocation is not disclosed in the sources we retrieved.
It is case-based multiple choice. The public sample includes single-answer items and multiple-answer items, including choose-two instructions, with several questions sharing one case in a split-screen layout. No adaptive testing was verified.
The current Level II curriculum link still resolves to an outline marked "Last Updated: 11/22," and the public sample is copyright 2022. No separate 2026 exam-form version was verified, so confirm the current scope with the IFRS Foundation or Pearson VUE before you finalize your plan.
Pearson VUE delivers the exam at test centres and through OnVUE online proctoring. The Level II fee is US$650 standard or US$500 for qualifying IFRS Sustainability Alliance members, before applicable taxes. Location-based reduced pricing exists for eligible economies, but no country-specific amount is assumed here.