IAASB releases proposed ISSA 5000 global sustainability assurance standard for consultation

The International Auditing and Assurance Standards Board released its proposed International Standard on Sustainability Assurance (ISSA) 5000, a principles-based standard for limited and reasonable sustainability assurance engagements, with comments due December 1, 2023. As India advances assured sustainability reporting under BRSR, a globally accepted assurance standard could shape practitioner expectations for Indian assurers.

The IAASB released its proposed International Standard on Sustainability Assurance (ISSA) 5000, titled 'General Requirements for Sustainability Assurance Engagements'. Once approved, it is intended to be the most comprehensive sustainability assurance standard available to practitioners worldwide. ISSA 5000 is principles-based and applicable to both limited and reasonable assurance engagements across any sustainability topic, and is drafted to be compatible with information prepared under frameworks from the EU, the ISSB, the Global Reporting Initiative, and ISO. It is profession-agnostic, supporting both professional accountants and non-accountant assurance practitioners. Comments are due by December 1, 2023.

The proposed standard affects assurance practitioners, both accountant and non-accountant, as well as companies preparing sustainability reports that require external assurance. For Indian companies, the standard is relevant as BRSR Core mandates reasonable assurance for top listed entities, creating demand for credible assurance methodologies. Indian audit firms, assurance providers, and ESG consultants stand to be affected, as a globally accepted standard could influence how sustainability assurance is conducted and trusted across reporting frameworks adopted by Indian preparers.

The IAASB planned extensive outreach, including a series of four roundtables starting in September and participation in virtual, regional, and national events during the consultation. Stakeholders were encouraged to submit comments via the IAASB website by December 1, 2023. The board also planned to release ISSA 5000 in French, Japanese, Portuguese, and Spanish. Indian assurance providers and reporting companies should review the proposed standard, consider submitting feedback, and track the finalised version for alignment with domestic assurance requirements.

Key figure — Consultation deadline: December 1, 2023 for comments on proposed ISSA 5000