How I Passed the FSA Credential Level II Exam: A CPA’s Journey Toward Sustainable Impact
Why I Pursued the FSA Credential
As a CPA licensed in California and Georgia, I’ve spent over a decade advising businesses on financial performance and compliance. But in recent years, I’ve grown increasingly aware of a critical gap: the intersection between sustainability-related risks and opportunities and economic performance.
Today, businesses are no longer judged solely on profitability—they’re evaluated by their environmental and social impact, risk resilience, and long-term value creation. To bridge this gap, I pursued the Fundamentals of Sustainability Accounting (FSA) Credential offered by the IFRS Foundation—a globally recognized designation for professionals integrating sustainability and financial performance.
After completing Level I, which focuses on the core concepts of the IFRS Sustainability Disclosure Standards, I prepared for Level II, which emphasizes practical application and investor-focused analysis. Here’s how I prepared—and passed.
Understanding the FSA Credential Level II Exam
The Level II exam moves beyond the principles-based curriculum of the Level I exam and requires practical application of sustainability (ESG) accounting to real-world business and investment scenarios. Key components include:
Identifying the material financial impacts of sustainability issues
Evaluating the comparability of sustainability information, including selecting appropriate measures for use in normalization
Demonstrating how sustainability risks and opportunities impact valuation and financial performance
Passing Level II requires the candidate to understand how material ESG issues impact financial performance and the ability to synthesize ESG and financial information into strategic insights.
My Study Strategy
1. Scheduled Consistent Study Blocks
Because I was also managing client work and building my sustainability practice, I carved out focused study time—typically 3.5 hours daily over the course of 3 weeks. I treated the preparation process like professional development, not cramming for an exam.
2. Reviewed the FSA Credential Exam Level II Study Guide
The official study guide is essential for proper preparation. I carefully reviewed the guide, particularly around:
Fundamental concepts to ESG analysis
Case studies and the information within a case most relevant to investor-focused analysis
Leveraging quantitative and qualitative data to identify the relationships between ESG performance and financial performance
I supplemented the guide with flashcards I created using Quizlet to reiterate the concepts I learned. If you would like free access to my Quizlet flashcard set, complete our Contact form, and I will personally send you an accessible link to view my flashcards and incorporate them into your study plan.
The chapters build upon themselves, so take time to understand each chapter before moving forward.
3. Practiced With Case Studies
The study guide includes dozens of case studies designed to further your understanding and critical thinking about the fundamental concepts related to ESG analysis. In addition, the case studies within the study guide enable you to gain familiarity with identifying information that is most relevant to ESG analysis and making the connection to financial performance.
4. Completed Mock Exams and Sample Questions
The FSA Credential Level II Exam Study guide includes practice cases and multiple-choice questions that mirror the type of questions you will see on the exam. I completed all practice cases and corresponding multiple-choice questions to ensure I understood key concepts. Furthermore, as the exam is timed (120 minutes or 2 hours) and includes 55 multiple choice questions related to 13 case studies, I used a timer set to six minutes to complete each case exercise to ensure I managed my time effectively, so when exam day arrived, I could be sure I get through all questions promptly.
The study guide also includes a sample test to help you wrap up your review of the material.
A key tip as you study: think like an analyst. Don’t just memorize specific industry standards or complex calculations—understand the link between sustainability performance and financial performance using quantitative and qualitative data.
Mindset and Exam Day Tips
Trust your judgment. You’ve taken the time to thoroughly prepare for the exam (i.e., practicing applying the skills and frameworks as defined by the Learning Objectives presented in the study guide), so trust yourself.
Stay calm and manage your time. The information needed to complete exam questions related to a specific industry will be included in the exam case studies, so stick to the facts presented in the exam case study and do not overthink! Furthermore, keep track of how much time you spend on each exam case and budget for no more than six to seven minutes per case to ensure you do not run out of time.
Final Thoughts: Why It Was Worth It
Earning the FSA Credential has strengthened my ability to help clients understand sustainability as more than a compliance issue but a strategic driver of long-term value. It’s already helping me deliver more informed, future-ready insights to small and medium-sized businesses.
If you’re a CPA, analyst, consultant, or finance professional looking to expand into ESG, the FSA is a smart, actionable credential that builds on your credibility and impact.
Resources I Recommend
Have questions or considering taking the exam?
Feel free to connect with me—I’d love to support others on the journey toward sustainable accounting.