100+ Free ICAEW ACA Sustainability and Ethics Practice Questions

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When a company communicates about its sustainability performance, the syllabus stresses the importance of:

Maximising favourable impressions regardless of evidence

Using vague language to retain flexibility

Disclosing only positive outcomes

Transparency and avoiding misleading or unsubstantiated claims

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2026 Statistics

Key Facts: ICAEW ACA Sustainability and Ethics Exam

Questions (2 marks each)

ICAEW Syllabus Handbook

1.5 hrs

Exam Duration

ICAEW Syllabus Handbook

55%

Pass Mark

ICAEW Syllabus Handbook

Syllabus Areas

ICAEW Specification Grid

2025/26

First Sittings

Next Generation ACA

ICAEW's Sustainability and Ethics exam is a fully redeveloped Next Generation ACA Certificate Level module, first sat from 2025/26, replacing Business Technology and Finance and the Ethics Learning Programme. It is 1.5 hours long with 50 questions, each worth two marks, in multiple choice, multi-part multiple choice or multiple-response format, and the pass mark is 55%. The syllabus has 10 areas across two halves: five on sustainability (concepts, pillars, regulation, business and the accountant's role) and five on ethics (concept of ethics, public trust, fundamental principles, threats and safeguards, and data ethics). It covers ESG, net zero, ISSB IFRS S1/S2, TCFD, GRI, assurance, and the ICAEW/IESBA Code of Ethics.

Sample ICAEW ACA Sustainability and Ethics Practice Questions

Try these sample questions to test your ICAEW ACA Sustainability and Ethics exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Within ICAEW's working definition used in the Sustainability and Ethics module, sustainability is best described as:

A.Maximising short-term shareholder returns within each financial year

B.Eliminating all environmental impact from business activity

C.Balancing the use of resources with present and future needs

D.Complying only with mandatory environmental legislation

Explanation: ICAEW frames sustainability as balancing resources with needs, so that meeting present needs does not compromise the ability of future generations to meet their own. It is broader than environmental compliance and not limited to short-term profit.

2The United Nations Sustainable Development Goals (SDGs) consist of how many goals adopted in 2015 as part of the 2030 Agenda?

A.8 goals

B.17 goals

C.12 goals

D.21 goals

Explanation: The UN SDGs comprise 17 goals (and 169 targets), adopted by member states in 2015 to be achieved by 2030. They build on the earlier eight Millennium Development Goals.

3The concept of 'planetary boundaries' is most accurately described as:

A.National borders that limit cross-border pollution treaties

B.A framework for allocating carbon credits between countries

C.The maximum geographic area a business may occupy sustainably

D.A set of environmental thresholds within which humanity can safely operate

Explanation: Planetary boundaries define a 'safe operating space' for humanity across systems such as climate change, biodiversity loss and freshwater use. Crossing these thresholds risks abrupt or irreversible environmental change.

4In a circular economy model, the primary objective is to:

A.Maximise the throughput of raw materials to drive growth

B.Keep products and materials in use and design out waste

C.Replace all manufacturing with service-based business models

D.Move production offshore to lower-cost jurisdictions

Explanation: A circular economy aims to keep products, components and materials in use for as long as possible, designing out waste and pollution and regenerating natural systems. It contrasts with the linear 'take-make-dispose' model.

5'Doughnut Economics', referenced in the ICAEW syllabus, proposes that a sustainable economy should operate:

A.Above an environmental ceiling but below a social foundation

B.Between a social foundation and an environmental ceiling

C.Without any reference to social outcomes

D.Only by maximising GDP growth indefinitely

Explanation: Doughnut Economics, developed by Kate Raworth, depicts a safe and just space between a social foundation (meeting people's basic needs) and an ecological ceiling (planetary boundaries). The economy should meet human needs without overshooting environmental limits.

6The current geological epoch term used to describe the period in which human activity has become the dominant influence on climate and the environment is the:

A.Holocene

B.Pleistocene

C.Anthropocene

D.Cenozoic

Explanation: The Anthropocene describes the proposed epoch in which human activity is the dominant force shaping Earth's systems. It is used in the syllabus to frame why sustainability challenges are human-driven.

7Which of the following is an example of 'natural capital' as a form of capital relevant to sustainability?

A.A company's brand reputation

B.Forests, fisheries and clean water

C.Employee skills and knowledge

D.Trade receivables on the balance sheet

Explanation: Natural capital refers to the world's stock of natural assets, such as forests, fisheries, soils, air and water, that provide ecosystem services. Brand is intellectual capital, skills are human capital, and receivables are financial capital.

8A global sustainability challenge described as the long-term shift in temperatures and weather patterns, largely driven by greenhouse gas emissions, is:

A.Urbanisation

B.Economic inequality

C.Climate change

D.Migration

Explanation: Climate change is the long-term alteration of temperature and weather patterns, primarily driven by human greenhouse gas emissions. The syllabus lists it as a key global-scale sustainability challenge alongside pollution, waste and species decline.

9'Degrowth' as an economic concept refers to:

A.A temporary recession caused by falling consumer demand

B.An inflation-driven contraction in real output

C.The relocation of growth from developed to developing economies

D.A planned reduction in resource and energy throughput to operate within ecological limits

Explanation: Degrowth is a deliberate downscaling of production and consumption to reduce environmental pressure and improve wellbeing within ecological limits. It contrasts with the assumption that continuous GDP growth is necessary or desirable.

10Which group would NOT typically be regarded as a key stakeholder in an organisation's sustainability outcomes?

A.Local communities affected by operations

B.Future generations

C.A competitor's anonymous retail customers in an unrelated market

D.Regulators and governments

Explanation: Key sustainability stakeholders include those affected by or able to affect the organisation's impacts, such as communities, future generations, regulators, employees and investors. A competitor's unrelated customers have no direct stake in this organisation's sustainability outcomes.

About the ICAEW ACA Sustainability and Ethics Exam

Sustainability and Ethics is a Next Generation ACA Certificate Level module that replaces the Ethics Learning Programme and the Business Technology and Finance exam. It introduces the fundamentals of sustainability and ethics through a 1.5-hour computer-based exam of 50 equally weighted multiple choice, multi-part and multiple-response questions, with a 55% pass mark.

Questions

50 scored questions

Time Limit

1.5 hours (90 minutes)

Passing Score

55%

Exam Fee

ICAEW Certificate Level per-exam fee; confirm the current amount at booking on the ICAEW website (Institute of Chartered Accountants in England and Wales (ICAEW))

ICAEW ACA Sustainability and Ethics Exam Content Outline

10%

Concepts and significance of sustainability

Definition of sustainability, UN SDGs, the Anthropocene, planetary boundaries, forms of capital, circular economy, Doughnut Economics, degrowth, global challenges and key stakeholders.

10%

Pillars of sustainability

Environmental, social and economic pillars, the triple bottom line, challenges to each pillar, net zero, biodiversity and the interconnection between the three pillars.

Regulation on sustainability

Roles of regulation, policy and guidance, international agreements such as the Paris Agreement, governmental and non-governmental bodies, and codification trends such as the CSRD.

14%

Sustainability in business

Sustainable strategy and barriers, impacts, dependencies, risks and opportunities, enterprise and social value, sustainable finance, life cycle assessment, ESG measurement and greenwashing.

10%

The role of the professional accountant in sustainability

Sustainability reporting requirements (ISSB IFRS S1 and S2, TCFD, GRI), materiality, assurance over sustainability information, the role of accountancy bodies and sustainable workplace practice.

Concept of ethics and its significance

Personal, business and professional ethics, ethical theories (objectivism, relativism, teleological, deontological, utilitarianism), ethics and law, stakeholder interests and ethical culture.

14%

Ethics and public trust

Public interest and public trust, accountability, transparency, governance, professional scepticism and judgement, bias, rules-based versus principles-based codes, IESBA, FRC and ICAEW codes.

14%

The fundamental ethical principles

Structure of the ICAEW Code; the five fundamental principles (integrity, objectivity, professional competence and due care, confidentiality, professional behaviour); confidentiality, money laundering, independence and conflicts of interest.

Threats and safeguards

The conceptual framework; self-interest, self-review, advocacy, familiarity and intimidation threats; safeguards; threats for accountants in business versus practice; pressure to breach principles; whistleblowing.

Data ethics and the impact of technology

Principles of data ethics, challenging data and information, data bias, the enquiring mind, protection of personal and commercially sensitive data, and ethical issues from technology and AI.

How to Pass the ICAEW ACA Sustainability and Ethics Exam

What You Need to Know

Passing score: 55%
Exam length: 50 questions
Time limit: 1.5 hours (90 minutes)
Exam fee: ICAEW Certificate Level per-exam fee; confirm the current amount at booking on the ICAEW website

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ICAEW ACA Sustainability and Ethics Study Tips from Top Performers

1Use the specification grid weightings to allocate study time, giving extra attention to the three 14% areas: sustainability in business, ethics and public trust, and the fundamental principles.

2Learn the five fundamental principles and the five threat categories by heart, then practise applying them to short scenarios.

3Be able to distinguish reporting frameworks: ISSB IFRS S1/S2 (investor-focused, financial materiality), TCFD (four pillars) and GRI (impact materiality).

4Practise spotting greenwashing and weak sustainability claims, since transparency is a recurring theme.

5Treat scenario questions like real ethical dilemmas: identify the threat, evaluate it, then choose the safeguard or action.

6Do timed mocks at 50 questions in 90 minutes to build pacing of roughly under two minutes per question.

Frequently Asked Questions

How many questions are on the ICAEW ACA Sustainability and Ethics exam?

ICAEW states the exam has 50 questions, each worth two marks and carrying equal weight. They are presented as multiple choice, multi-part multiple choice or multiple-response questions covering all 10 syllabus areas.

What is the pass mark for Sustainability and Ethics?

The pass mark is 55%. The exam is 1.5 hours long, and questions are weighted across the syllabus areas in line with the ICAEW specification grid.

What does the Sustainability and Ethics module replace?

Under the Next Generation ACA, Sustainability and Ethics is a fully redeveloped Certificate Level module that replaces the Business Technology and Finance exam and the separate Ethics Learning Programme, with first sittings from 2025/26.

What topics does Sustainability and Ethics cover?

The syllabus has 10 areas split into two halves. The sustainability half covers concepts, the three pillars, regulation, sustainability in business and the accountant's role; the ethics half covers the concept of ethics, public trust, the fundamental principles, threats and safeguards, and data ethics.

Does the exam cover ISSB, TCFD and GRI?

Yes. The accountant's role in sustainability includes sustainability reporting requirements such as the ISSB's IFRS S1 and S2, the TCFD framework and the GRI standards, along with assurance over sustainability information.

Which Code of Ethics does the exam test?

It tests the ICAEW Code of Ethics, which is based on the IESBA Code, including the five fundamental principles, the conceptual framework, threats and safeguards, and the relationship with the FRC Ethical Standard.

How is the exam delivered?

It is a computer-based objective test sat on demand throughout the year, either at an exam centre or by remote invigilation, and is marked against a 55% pass standard.

How long should I study for Sustainability and Ethics?

Most students spend roughly 30-50 hours, depending on prior knowledge. Because the module spans broad conceptual and applied content, regular scenario practice across all 10 areas is recommended.