2 hours ago2 min read
2 hours ago3 min read
6 days ago2 min read
Jan 124 min read
Dec 24, 20243 min read
Dec 18, 20243 min read
Dec 18, 20244 min read
Dec 16, 20244 min read
Dec 11, 20243 min read
Dec 6, 20244 min read
Dec 3, 20243 min read
IAASB and IESBA Release New Standards and Guidance for Sustainability Reporting and Assurance
The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have introduced pioneering standards to elevate global sustainability reporting and assurance, ensuring trust and transparency across the reporting ecosystem. This collaborative initiative promises a cohesive, ethics-driven framework to meet the growing demand for reliable sustainability information.
Key Goals of the Standard on Sustainability Assurance
Global Cohesion: The new standards offer a unified approach to sustainability assurance, integrating ISSA 5000 (IAASB) and IESSA (IESBA) for comprehensive, interoperable global standards.
Leveling the Playing Field: Establishes a universal baseline for market and regulatory demands, creating a profession-agnostic framework.
Framework Neutrality: Adaptable across various sustainability reporting systems, ensuring broad applicability and utility.
Enhanced Decision-Making: Fosters informed decisions through reliable and independently assured sustainability data.
Fraud and Non-Compliance Mitigation: Takes a significant step in countering greenwashing, unethical conduct, and legal violations.
“The interoperable package of ISSA 5000 and IESSA represents an important evolution in global sustainability reporting and assurance,” said Tom Seidenstein, Chair of the IAASB. “These standards establish the necessary technical and ethical pillars to ensure that qualified practitioners could consistently perform high-quality assurance engagements on sustainability information.”
Highlights of ISSA 5000
The IAASB's International Standard on Sustainability Assurance 5000 (ISSA 5000) is a principles-based framework tailored for sustainability assurance engagements. Its standout features include:
Enhanced Reliability: Focused on bolstering transparency, the standard ensures sustainability disclosures meet stakeholder needs.
Scalability: Flexible across diverse organizational sizes and regional contexts.
Diverse Practitioner Support: Ensures all assurance providers maintain rigor and consistency, regardless of engagement scale.
Practical implementation support for ISSA 5000 includes an implementation guide, FAQs, and webinars to ensure seamless adoption.
Core of IESSA: Ethics and Independence
IESBA’s International Ethics Standards for Sustainability Assurance (IESSA) embeds ethics into sustainability reporting. It addresses unique challenges such as immature data systems and forward-looking disclosures, offering:
Ethical frameworks to prevent greenwashing and unethical practices.
Independence standards tailored to mitigate conflicts of interest.
Guidance on utilizing external experts for assurance, ensuring objective and high-quality outputs.
“Ethics is the foundation of trust,” said Gabriela Figueiredo Dias, Chair of the IESBA. “With these standards, we are equipping preparers and practitioners with the tools needed to uphold integrity and foster transparency in sustainability reporting. Together, the IAASB and IESBA are setting a global standard for accountability and professionalism.”
Effective Dates and Support
Both ISSA 5000 and IESSA will take effect for reporting periods starting December 15, 2026, with early adoption encouraged. Robust implementation resources, including webinars, fact sheets, and detailed guides, will support practitioners and organizations during the transition.
Upcoming IESBA Webinars
To familiarize stakeholders with the standards, IESBA has scheduled the following webinars:
IESBA Sustainability-related Ethics and Independence Standards
IESBA Sustainability Overview and Sustainability Reporting
Key Topics in the IESSA
IESSA Independence Standards: A Deep Dive
Using the Work of an External Expert
Read the Full Press Release
You can find the full press release here.
Stay informed on the latest ESG insights and updates. Follow us on LinkedIn.
Join the Conversation!
Want to stay ahead in the world of sustainability? Subscribe to our newsletter for the latest insights on ESG trends, sustainability reporting, and innovative strategies.
💡 Be part of the change! Join our ESG Community Forum to share your perspectives, connect with like-minded professionals, and shape the future of sustainable practices.
