How I Passed the FSA Credential Level I Exam: A CPA’s Journey into Sustainability Accounting

As a CPA licensed in California and Georgia with over a decade of experience in accounting, audit, and tax, I've seen the profession evolve in many ways—but nothing quite like the shift I am witnessing now with the push to integrate sustainability into financial reporting.

With the growing impacts of climate change driving regulatory, investor, and societal demands, companies of all sizes are increasingly required to disclose sustainability-related information. In response, the International Sustainability Standards Board (ISSB) has issued global disclosure standards that will reshape the financial reporting landscape. I knew I wanted to be a part of this change—especially to help small and medium-sized businesses understand and act on the sustainability risks and opportunities that affect their financial performance, position, and prospects. As a result, I decided to pursue the Fundamentals of Sustainability Accounting (FSA) Credential, issued by the IFRS Foundation.

Below, I’ll walk you through what the FSA Credential Level I Exam covers, how I prepared (with limited prior experience in sustainability), and what I believe makes this credential valuable for any accountant or finance professional looking to future-proof their career in sustainability.

Why I Chose the FSA Credential

My ultimate goal is to build a consulting practice that helps businesses integrate sustainability into their financial systems—guiding them through this complex but crucial transition. Earning the FSA Credential felt like a necessary step toward that goal. It demonstrates commitment and expertise and equips professionals with the foundational knowledge to interpret and apply sustainability disclosures aligned with evolving global reporting standards.

What The FSA Credential Level I Exam Covers

The FSA Credential Level I Exam tests your understanding of the core principles behind sustainability disclosures and their importance to financial markets.

The Level I Exam study guide is separated into four parts:

Part 1: The Need For Sustainability Disclosure Standards

1. Demand for Sustainability Information

2. The Historical Basis for Disclosure

3. Materiality: A guiding principle for required disclosure

4. The Limitations of Financial Disclosure

Part 2: The Sustainability Information Ecosystem

1. Introduction to the sustainability information value chain and the role of data providers

2. The Role of Standards and Frameworks: From Fragmentation to Cohesion in Sustainability Disclosure

3. Materiality: Going beyond investors

4. Sustainability Disclosure Across Jurisdictions

Part 3: Understanding IFRS Sustainability Disclosure Standards

1. What is useful sustainability-related financial information?

2. The IFRS Sustainability Disclosure Standards

3. Setting IFRS Sustainability Disclosure Standards

4. How Companies Disclose Sustainability-Related Financial Information

Part 4: Corporate and Investor Use: Going Beyond Disclosure

1. A Closer Look: Investor demand for sustainability information

2. Considerations for Corporate Use

3. Considerations for Investor Use

Exam Format and Logistics

Format: 110 multiple-choice questions

• Time: 2 hours (120 minutes)

• *Cost: $450

• Delivery: Pearson VUE test centers or take at home via OnVUE online proctoring

• Frequency: Offered in several blocks throughout the year

*At the time of this posting, the pricing of the FSA Credential Level I Exam is $450. Active CPAs who are members of the AICPA may be eligible for the FSA Credential Exam discount.

I elected to take the exam in person at a Pearson VUE testing center. Once I completed the exam, I received a hard copy of my results (i.e., pass/fail). Your testing results will also be emailed to you the same day (typically within an hour).

Please note, while there is a lack of guidance around the minimum score you must earn to pass the Level I or Level II exam (please note, in the FSA Credential Candidate Handbook, CPAs may earn CPE credit if they receive a passing score on FSA Level I, and for FSA Level II a minimum score of 70% is required), I recommend aiming to achieve a minimum of 80% on the practice questions and sample test included in the study guide, to help you gauge the likelihood of your actual test performance. I manually calculated the number of questions I would get wrong when doing the practice questions and sample tests to determine the probability that I would pass the actual exam.

In addition, once you pass the FSA Credential Level I Exam, you will be issued a digital badge from the IFRS Foundation via Credly. Once you claim your digital badge, you may display it online wherever you please (e.g., LinkedIn profile, website, email signature, etc.). However, you must refrain from using FSA in your title (e.g., Jane Smith, FSA). Instead, you can refer to yourself as a FSA Level II Candidate. Candidates who pass the Level I exam are listed in the FSA Credential Directory for verification purposes.

How I Prepared — Read This Part Carefully, If You Have No Sustainability Experience

If you have zero background in sustainability accounting—this will be all new territory for you. Fortunately, the IFRS Foundation Fundamentals of Sustainability Accounting (FSA) Credential Level I Exam Study Guide provided with the exam registration is incredibly thorough and assumes no prior knowledge. Additional study materials or courses are not needed to pass Level I. All that is required to pass the exam is time, patience, and consistency in reviewing the study guide.

Here’s what worked for me:

• Dedicated approximately 80 hours over three weeks
  I scheduled approximately four hours of study time daily, which included taking notes and reviewing key concepts consistently.

• Leveraged the “Check Your Understanding” questions at the end of each chapter
  These helped me find weak spots and determine which concepts to review again.

• Created flashcards using Quizlet
  I made my cards into practice questions (e.g., true/false, matching, etc.) rather than the traditional term & definition formatted flashcards.
  👉 If you would like to access my free Quizlet flashcards, complete our Contact form.

There are 45 multiple-choice sample questions in the study guide reflective of the questions you will see on the exam. You should note that these sample questions are designed to help with recall. Additionally, you may need significantly less time to prepare for the exam; however, depending on your expertise in sustainability accounting, I highly recommend you provide yourself with adequate time to prepare for the exam.

Key Tips for Passing the FSA Credential Level I Exam

1. Read everything in the study guide.
   That includes the executive summary, chapter overviews, blue-callout boxes, and the check your understanding answer key.

2. Create your flashcards or use mine.
   Quizlet offers a free subscription for creating flashcards. I found that the paid Quizlet Plus subscription better suited my needs, as it included additional tools helpful for customizing the format of the flashcards to match my study style.

3. Memorize definitions and core concepts.
   Bolded terms, learning objectives at the beginning of each chapter, and the glossary at the end of the guide are helpful for capturing key concepts. The Level I exam is recall-based—you must know key terms and concepts.

4. Try not to overthink.
   The IFRS Foundation study guide is all you need to prepare for and pass the exam. You will not need to spend extra money on prep courses to help you prepare for the exam.

Is the FSA Credential Worth It?

Absolutely.

For CPAs or finance professionals who want to specialize or pivot toward the growing field of sustainability, the FSA Credential is an ideal starting point. It provides a strong foundation in understanding the link between sustainability and financial performance. It also positions candidates to meet the reporting demands of the future—where ESG and sustainability are no longer nice to disclose but expected.

Final Thoughts

Passing the FSA Level I Exam was a challenge—but a rewarding one. I gained a credential and a solid understanding of a space that will define the next era of financial reporting. Whether a CPA or finance professional is new to sustainability accounting or looking to deepen their expertise, the FSA credential is worth pursuing.

Remember, sustainability is the future of accounting. If you are considering taking the leap, do it—and good luck on your journey!

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