Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

In the context of the International Integrated Reporting Council (IIRC) Framework, "capital" refers to the various resources that organizations use to create value over time. The IIRC identifies several types of capital, which include financial, manufactured, intellectual, social and relationship, and natural capital. Each type of capital represents a different resource and contributes uniquely to the organization’s overall ability to operate sustainably and create value.

The term "performance," while critical for assessing how well an organization is achieving its objectives, does not fall into the category of capital as defined by the IIRC. Performance is typically a measure of success or effectiveness, not a resource or form of capital that an organization can leverage. Therefore, it does not align with the framework's classification of the various types of capital.

Understanding the definition and context of the types of capital as provided by the IIRC is essential for interpreting integrated reports and comprehending how organizations communicate their strategies, sustainability efforts, and overall value creation processes.

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